601.62 Annotation
Legislative Council Note on sub. (5), 1975: This replaces ss. 207.13 and 201.53 (11) and (12) [repealed by this act]. Section 207.13 was in the unfair insurance business methods chapter but applied in terms "to any hearing". This new provision is even broader in proceedings covered. It is modeled after the securities act provision (s. 551.56 (3) of the statutes) with one phrase deleted because s. 601.18 makes it unnecessary, and other changes, some editorial and one limiting the scope of the immunity to criminal prosecution. Other similar provisions are to be found in s. 93.17 (department of agriculture), s. 97.20 (10) (same; food regulation), s. 111.07 (employment relations commission), 196.48 (public service commission), and s. 972.08 (criminal proceedings). Section 201.53 (11) and (12) only applied in terms to s. 201.53, which contained a miscellaneous group of provisions, mostly concerning unfair marketing practices, but it applied very broadly to all proceedings and, apparently, even informal requests for information. [Bill 16-S]
601.63
601.63
Notice and effective date of orders. 601.63(1)
(1)
Notice to person addressed by order. Notice of any order by the commissioner shall be served under
s. 227.48.
601.63(2)
(2) Notification to agents of revocation of certificate of authority of insurer. Upon issuance of any order limiting, suspending or revoking an insurer's authority to do business in this state, the commissioner shall notify by mail all agents of the insurer of whom the commissioner has record. The commissioner shall also publish a class 1 notice of the order under
ch. 985.
601.63(3)
(3) Delay of effective date. Except as provided in
sub. (4) or as expressly provided otherwise by statute, all orders of the commissioner shall take effect 10 days after notice under
sub. (1) or at a later date specified in the order.
601.63(3m)
(3m) Hearing request. If the order was issued without a hearing, any person aggrieved by the order may demand a hearing under
s. 601.62 (3) (a). If no demand for a hearing is made within the prescribed time, the order is final.
601.63(4)
(4) Suspension of order. Whenever a hearing is demanded under
s. 601.62 (3) (a) or a rehearing is requested under
s. 227.49, the commissioner may suspend the order or any part thereof until after the hearing or rehearing. If the commissioner refuses to suspend the order, any person aggrieved thereby may seek a court order under
ch. 813 to restrain enforcement of the order until after the hearing or rehearing.
601.63(5)
(5) Actions subject to approval or disapproval. 601.63(5)(a)(a) Required approval. Whenever the law requires the commissioner's approval for a certain action, the action is not effective until expressly approved. The approval is deemed refused if the commissioner does not act within 60 days after receiving the application for approval.
601.63(5)(b)
(b)
Reserved disapproval. Whenever the law provides that a certain action does not become effective if disapproved by the commissioner within a certain period, the action may be made effective prior to the expiration of the period by being affirmatively approved by the commissioner.
601.63(5)(c)
(c)
Specific provisions. Paragraphs (a) and
(b) do not apply to the extent that the law specifically provides otherwise.
601.63 History
History: 1971 c. 40 s.
93; Sup. Ct. Order, 67 W (2d) 585, 776 (1975);
1975 c. 218;
1975 c. 414 s.
28;
1977 c. 26;
1977 c. 203 ss.
83,
84,
104;
1979 c. 102;
1985 a. 182 s.
57;
1995 a. 396.
601.64
601.64
Enforcement procedure. 601.64(1)
(1)
Injunctions and restraining orders. The commissioner may commence an action in circuit court in the name of the state to restrain by temporary or permanent injunction or by temporary restraining order any violation of
chs. 600 to
655,
s. 149.13 or
149.144, any rule promulgated under
chs. 600 to
655 or any order issued under
s. 601.41 (4). Except as provided in
s. 641.20, the commissioner need not show irreparable harm or lack of an adequate remedy at law in an action commenced under this subsection.
601.64(2)
(2) Compulsive forfeitures. If a person does not comply with an order issued under
s. 601.41 (4) within 2 weeks after the commissioner has given the person notice of the commissioner's intention to proceed under this subsection, the commissioner may commence an action for a forfeiture in such sum as the court considers just, but not exceeding $5,000 for each day that the violation continues after the commencement of the action until judgment is rendered. No forfeiture may be imposed under this subsection if at the time the action was commenced the person was in compliance with the order, nor for any violation of an order occurring while any proceeding for judicial review of the order was pending, unless the court in which the proceeding was pending certifies that the claim of invalidity or nonapplicability of the order was frivolous or a sham. If after judgment is rendered the person does not comply with the order, the commissioner may commence a new action for a forfeiture and may continue commencing actions until the person complies. The proceeds of all actions under this subsection, after deduction of the expenses of collection, shall be paid into the common school fund of the state.
601.64(3)
(3) Forfeitures and civil penalties. 601.64(3)(a)(a)
Restitutionary forfeiture. Whoever violates an effective order issued under
s. 601.41 (4), any insurance statute or rule or
s. 149.13 or
149.144 shall forfeit to the state twice the amount of any profit gained from the violation, in addition to any other forfeiture or penalty imposed.
601.64(3)(b)
(b)
Forfeiture for violation of order. Whoever violates an order issued under
s. 601.41 (4) which is effective under
s. 601.63 shall forfeit to the state not more than $1,000 for each violation. Each day that the violation continues is a separate offense.
601.64(3)(c)
(c)
Forfeiture for violation of statute or rule. Whoever violates an insurance statute or rule or
s. 149.13 or
149.144, intentionally aids a person in violating an insurance statute or rule or
s. 149.13 or
149.144 or knowingly permits a person over whom he or she has authority to violate an insurance statute or rule or
s. 149.13 or
149.144 shall forfeit to the state not more than $1,000 for each violation. If the statute or rule imposes a duty to make a report to the commissioner, each week of delay in complying with the duty is a new violation.
601.64(3)(d)
(d)
Procedure. The commissioner may order any person to pay a forfeiture imposed under this subsection or
s. 601.65, which shall be paid into the common school fund. If the order is issued without a hearing, the affected person may demand a hearing under
s. 601.62 (3) (a). If the person fails to request a hearing, the order is conclusive as to the person's liability. The scope of review for forfeitures ordered is that specified under
s. 227.57. The commissioner may cause action to be commenced to recover the forfeiture. Before an action is commenced, the commissioner may compromise the forfeiture.
601.64(4)
(4) Criminal penalty. Whoever intentionally violates or intentionally permits any person over whom he or she has authority to violate or intentionally aids any person in violating any insurance statute or rule of this state,
s. 149.13 or
149.144 or any effective order issued under
s. 601.41 (4) may, unless a specific penalty is provided elsewhere in the statutes, be fined not more than $10,000 if a corporation or if a natural person be fined not more than $5,000 or imprisoned for not to exceed 3 years or both. Intent has the meaning expressed under
s. 939.23.
Effective date note
NOTE: Sub. (4) is amended eff. 12-31-99 by
1997 Wis. Act 283 to read:
Effective date text
(4) Criminal penalty. Whoever intentionally violates or intentionally permits any person over whom he or she has authority to violate or intentionally aids any person in violating any insurance statute or rule of this state, s. 149.13 or 149.144 or any effective order issued under s. 601.41 (4) may, unless a specific penalty is provided elsewhere in the statutes, be fined not more than $10,000 if a corporation or if a natural person be fined not more than $5,000 or imprisoned for not more than 4 years and 6 months or both. Intent has the meaning expressed under s. 939.23.
601.64(5)
(5) Revocation, suspension and limitation of licenses. Whenever a licensee of the office other than an insurer, a motor club, an adjuster or an insurance intermediary persistently or substantially violates
chs. 600 to
646 or an order of the commissioner under
s. 601.41 (4), or if the licensee's methods and practices in the conduct of business endanger, or financial resources are inadequate to safeguard, the legitimate interests of customers and the public, the commissioner may, after a hearing, in whole or in part revoke, suspend or limit the license.
601.64 Annotation
Legislative Council Note on sub. (5), 1975: This amendment removes insurance intermediaries from the purview of the subsection. Under this act, revocation of an intermediary's license will be governed by s. 628.10 (2). [Bill 16-S]
601.65
601.65
Marketing firm forfeitures. 601.65(1)
(1) In this section "firm" means a person that markets insurance but does not include an insurer.
601.65(2)
(2) A firm is liable for a forfeiture of not more than $1,000 for each violation by an insurance agent of a provision of, a rule promulgated under or an order issued under
chs. 600 to
655 if the violation is in connection with an insurance policy or group certificate obtained or to be obtained through or from the firm and if any of the following applies:
601.65(2)(a)
(a) The firm regularly utilizes the insurance agent to market insurance policies or group certificates.
601.65(2)(b)
(b) The primary insurance marketing activities of the insurance agent are in connection with insurance policies or group certificates obtained or to be obtained through or from the firm.
601.65(2)(c)
(c) The insurance agent is employed by or is under contract with the firm to market insurance policies or group certificates.
601.65(3)
(3) If a provision of, a rule promulgated under or an order issued under
chs. 600 to
655 imposes a duty to submit a periodic or recurring report to the commissioner, each week of delay in submitting the report constitutes a separate violation. Each day of continued violation of an order issued under
s. 601.41 (4) constitutes a separate violation.
601.65 History
History: 1985 a. 29.
601.71
601.71
Enforcement of policyholder rights. When the commissioner is satisfied that any nondomestic insurer which no longer has a certificate of authority in this state does or omits to do any act whereby the rights of policyholders who are residents of this state, or who hold contracts issued or delivered in this state, are adversely affected, or whereby its ability to carry out its contracts with those policyholders is impaired, the commissioner may, with the agreement of the attorney general, bring an action in the name of the state on behalf of all policyholders so situated for the purpose of enforcing their rights. The attorney general shall act as attorney for the state in the action and the expenses shall be borne as in other civil actions in behalf of the state. Upon service of the complaint the insurer shall file with the commissioner the names and addresses of all policyholders so situated. A notice of the action shall be mailed to every such policyholder either by the commissioner or by the insurer, as the commissioner determines. Any policyholder affected by the action may intervene.
601.71 History
History: 1979 c. 102.
601.715
601.715
Registered agent for service of process. 601.715(1)(1) Every authorized insurer shall continuously maintain in this state a registered agent for service of process, notice or demand on the insurer. The authorized insurer shall file the name and address of the registered agent with the commissioner. The registered agent may be any of the following:
601.715(1)(b)
(b) A domestic corporation, nonstock corporation or limited liability company incorporated or organized in this state with a business office in this state.
601.715(1)(c)
(c) A foreign corporation or limited liability company authorized to transact business in this state with a business office in this state.
601.715(2)(a)(a) An authorized insurer may change its registered agent by delivering to the commissioner for filing a statement of registered agent change that is signed by an officer of the insurer and that includes all of the following information:
601.715(2)(a)1.
1. The name and home office address of the authorized insurer.
601.715(2)(a)3.
3. The complete address of the registered agent, as changed.
601.715(2)(a)4.
4. Any other information that the commissioner may require.
601.715(2)(b)
(b) An authorized insurer may change its registered agent no more than one time per year. Any change of registered agent is effective on January 1 of the year following the delivery of the statement under
par. (a).
601.715(3)
(3) A registered agent of an authorized insurer may change its registered agent address by doing all of the following:
601.715(3)(a)
(a) Notifying in writing the authorized insurer for which the registered agent is acting.
601.715(3)(b)
(b) Delivering to the commissioner for filing a statement that includes all of the following:
601.715(3)(b)1.
1. The name and home office address of the authorized insurer for which the registered agent is acting.
601.715(4)(a)(a) A registered agent of an authorized insurer may resign by signing and delivering to the commissioner for filing a statement of resignation that includes all of the following information:
601.715(4)(a)1.
1. The name and home office address of the authorized insurer for which the registered agent is acting.
601.715(4)(b)
(b) After filing the statement, the commissioner shall mail a copy to the authorized insurer under
par. (a) 1.
601.715(4)(c)
(c) The resignation is effective on the earlier of the following:
601.715(4)(c)1.
1. Sixty days after the commissioner receives the statement of resignation for filing.
601.715(4)(c)2.
2. The date on which the appointment of a successor registered agent is effective.
601.715(4m)
(4m) Service on an insurer under this section shall be made by personally serving the process, notice or demand on the registered agent of the insurer. In lieu of delivery to the registered agent, the process, notice or demand may be left at the office of the registered agent with the person who is apparently in charge of the office.
601.715(5)
(5) If an authorized insurer has no registered agent for service of process in this state or if the registered agent cannot with reasonable diligence be served, substituted service may be made on the commissioner under
ss. 601.72 and
601.73. If substituted service is made on the commissioner, an affidavit attesting that the authorized insurer has no registered agent or that the registered agent could not with reasonable diligence be served shall be attached to the process, notice or demand that is served.
601.715(6)
(6) Except as provided in
sub. (5), this section does not limit or affect the right to serve summons, notice, orders, pleadings, demands or other process upon an authorized insurer in any other manner provided by law.
601.715 History
History: 1995 a. 396.
601.72
601.72
Service of process through state officer. 601.72(1)(1)
General. Under procedures specified in
s. 601.73, the commissioner is by law constituted attorney, except in cases in which the proceeding is to be brought by the state against an insurer or intermediary other than a risk retention group or risk purchasing group, in which event the department of financial institutions is by law constituted attorney, to receive service of summons, notices, orders, pleadings and all other legal process relating to any court or administrative agency in this state for all of the following:
601.72(1)(a)
(a)
Authorized insurers. All insurers authorized to do business in this state, while authorized to do business in this state, and thereafter in any proceeding arising from or related to any transaction having any connection with this state, provided the requirements under
s. 601.715 (5) are satisfied.
601.72(1)(b)
(b)
Surplus lines insurers. All insurers as to any proceeding arising out of any contract that is permitted by
s. 618.41, or out of any certificate, cover note or other confirmation of such insurance.
601.72(1)(c)
(c)
Unauthorized insurers. All insurers or other persons doing an unauthorized insurance business in this state, including but not limited to risk purchasing groups, as to any proceeding arising out of the unauthorized transaction.
601.72(1)(d)
(d)
Risk purchasing groups and nonresident intermediaries. All risk purchasing groups or nonresident intermediaries as to any proceeding arising out of insurance activities within this state or out of insurance activities related to policies on risks within this state.
601.72(2)
(2) Appointment of attorney. Except as provided in
sub. (2m), every licensed insurer by applying for and receiving a certificate of authority, every surplus lines insurer by entering into a contract subject to the surplus lines law, and every unauthorized insurer by doing an insurance business in this state, is deemed to have irrevocably appointed the commissioner and department of financial institutions as the insurer's attorneys in accordance with
sub. (1).
601.72(2m)
(2m) Risk retention groups and risk purchasing groups. A risk retention group or risk purchasing group may not do an insurance business or engage in any insurance activity in this state until it registers with the commissioner and designates the commissioner as its agent for the purposes described in
sub. (1). The commissioner may prescribe the form of registration under this subsection. If a risk retention group or risk purchasing group fails to designate the commissioner as required by this subsection, the commissioner is appointed agent for the risk retention group or risk purchasing group as provided in
sub. (2).
601.72(3)
(3) Others affected. The commissioner and department of financial institutions shall also be attorneys for the executors, administrators or personal representatives, receivers, trustees or other successors in interest of the persons specified in
sub. (1).
601.72(4)
(4) Fees. Litigants serving process on the commissioner under this section shall pay the fees specified in
s. 601.31 (1) (p).
601.72(5)
(5) Ordinary means of service. The right to substituted service under this section does not limit the right to serve summons, notice, orders, pleadings, demands or other process upon any person in any manner provided by law.
601.72 History
History: 1995 a. 27,
396.
601.72 Annotation
Legislative Council Note on sub. (1) (d), 1975: Under s. 628.04 (created by this act), Wisconsin takes an important step in liberalizing prevailing licensing laws by not requiring residence for unrestricted Wisconsin intermediaries' licenses. As a correlative measure, however, the reach of the Wisconsin courts and administrative agencies is extended to all such nonresidents. [Bill 16-S]
601.72 Annotation
The commissioner has the duty to accept service for all insurers, but does not have a duty to determine whether an insurer is a party to the action in which service is sought. Davies v. Heiman, 186 W (2d) 370, 520 NW (2d) 917 (Ct. App. 1994).
601.73
601.73
Procedure for service of process through state officer. 601.73(1)(1)
Requirements for effective service. Service upon the commissioner or department of financial institutions under
s. 601.72 is service on the principal, if:
601.73(1)(a)
(a) Two copies of the process are left in the hands or office of the commissioner or department of financial institutions respectively; and
601.73(1)(b)
(b) The commissioner or department of financial institutions mails a copy of the process to the person served according to
sub. (2) (b).
601.73(2)(a)(a)
Records. The commissioner and department of financial institutions shall give receipts for and keep records of all process served through them.
601.73(2)(b)
(b) Process mailed. The commissioner or department of financial institutions shall send immediately by certified mail to the person served, at the person's last-known principal place of business, residence or post-office address or at an address designated in writing by the person, one copy of any process received and shall retain the other copy.
601.73(2)(c)
(c)
Default judgment. No plaintiff or complainant is entitled to a judgment by default in any proceeding in which process is served under this section and
s. 601.72 until the expiration of 20 days from the date of mailing of the process under
par. (b).
