601.59(6)(f)7.
7. Disclose information contained in or related to examination, operating or condition reports prepared by, or on behalf or for the use of, the commission with respect to a regulated entity for the purpose of regulation or supervision of such entity.
601.59(6)(f)8.
8. Disclose information, the premature disclosure of which would significantly endanger the stability of a regulated entity.
601.59(6)(f)9.
9. Specifically relate to the commission's issuance of a subpoena or its participation in a civil action or proceeding.
601.59(6)(g)
(g) For every meeting closed under
par. (f), the commission's chief legal officer shall publicly certify that, in his or her opinion, the meeting may be closed to the public, and shall reference each relevant exemptive provision. The commission shall keep minutes which shall fully and clearly describe all matters discussed in any meeting and shall provide a full and accurate summary of any actions taken, and the reasons therefor, including a description of each of the views expressed on any item and the record of any rollcall vote, reflected in the vote of each member on the question. All documents considered in connection with any action shall be identified in the minutes.
601.59(7)
(7) Article VII — Rule-making Functions of the Commission. 601.59(7)(a)(a) The commission shall promulgate rules and operating procedures in order to effectively and efficiently achieve the purposes of this compact; provided, that the commission shall not promulgate any rules that do any of the following:
601.59(7)(a)1.
1. Alter the statutory priorities for distributing assets out of an estate, except pursuant to rules promulgated under
par. (c).
601.59(7)(a)2.
2. Directly relate to guaranty associations, including but not limited to rules governing coverage, funding or assessment mechanisms. It is the intent of this compact that the commission not promulgate any rules that regulate, restrict or otherwise affect the operations of guaranty associations.
601.59(7)(b)
(b) Rule making shall occur according to the criteria set forth in this subsection and the rules and operating procedures promulgated pursuant thereto. Such rule making shall substantially conform to the principles of the federal administrative procedure act, 5 USCS 551, et seq., and the federal advisory committee act, 5 USCS app. 2, section 1, et seq.
601.59(7)(c)
(c) Other than the promulgation of such rules as are necessary for the orderly operation of the commission, the first rule to be considered by the commission shall be uniform provisions governing insurer receiverships including, but not limited to, provisions requiring compacting states to implement, execute and administer in a fair, just, effective and efficient manner rules and operating procedures relating to receiverships. The commission shall, within 3 years after the adoption of this compact by 2 or more states, promulgate such uniform provisions through the rule-making process. Such uniform provisions shall become law in all of the compacting states upon legislative enactment in a majority of the compacting states.
601.59(7)(d)
(d) All rules and amendments shall become binding as of the date specified in the rule or amendment; provided, that if a compacting state expressly rejects a rule or amendment through legislative enactment as of the expiration of the 2nd full calendar year after the rule is promulgated, the rule or amendment shall have no further force or effect in the rejecting compacting state. If a majority of compacting states reject a rule, then the rule shall have no further force or effect in any compacting state.
601.59(7)(e)
(e) When promulgating a rule or operating procedure, the commission shall do all of the following:
601.59(7)(e)1.
1. Publish the proposed rule or operating procedure, stating with particularity the text of the rule or operating procedure which is proposed and the reason for the proposed rule or operating procedure.
601.59(7)(e)2.
2. Allow persons to submit written data, facts, opinions and arguments, which information the commission shall make publicly available.
601.59(7)(e)4.
4. Promulgate a final rule or operating procedure and its effective date, if appropriate, based on the rule-making record.
601.59(7)(f)
(f) Not later than 60 days after a rule or operating procedure is promulgated, any interested person may file a petition in a court of competent jurisdiction where the commission's principal office is located for judicial review of the rule or operating procedure. If the court finds that the commission's action is not supported by substantial evidence in the rule-making record, the court shall hold the rule unlawful and set it aside.
601.59(8)
(8) Article VIII — Oversight and Dispute Resolution by the Commission. 601.59(8)(a)(a) The commission shall oversee the administration and operations of receiverships in compacting states, and shall monitor receiverships being administered in noncompacting states which may significantly affect compacting states.
601.59(8)(b)
(b) To aid its monitoring, oversight and coordination responsibilities, the commission shall establish operating procedures requiring each member to submit to the commission the following written reports:
601.59(8)(b)1.
1. An initial report upon a finding or other official action by the compacting state that grounds exist for receivership of an insurer doing business in more than one state. Thereafter, reports shall be submitted periodically and as otherwise required pursuant to the commission's operating procedures. The commission shall be entitled to receive notice of, and shall have standing to appear in, compacting states' receiverships.
601.59(8)(b)2.
2. An initial report of the status of an insurer within a reasonable time after the initiation of a receivership.
601.59(8)(c)
(c) The commission shall promulgate operating procedures requiring receivers to submit to the commission periodic written reports and such additional information and documentation as the commission may reasonably request. Each compacting state's receivers shall establish the capability to obtain and provide all records, data and information required by the commission in accordance with the commission's operating procedures.
601.59(8)(d)
(d) Except as to privileged records, data and information, the laws of any compacting state pertaining to confidentiality or nondisclosure shall not relieve any compacting state commissioner of the responsibility to disclose any relevant records, data or information to the commission; provided, that disclosure to the commission shall not be deemed to waive or otherwise affect any confidentiality requirement; and further provided, that the commission shall be subject to the compacting state's laws pertaining to confidentiality and nondisclosure with respect to all such records, data and information in its possession.
601.59(8)(e)
(e) The courts and executive agencies in each compacting state shall enforce this compact and shall take all actions necessary and appropriate to effectuate the compact's purposes and intent. In any receivership or other judicial or administrative proceeding in a compacting state pertaining to the subject matter of this compact which may affect the powers, responsibilities or actions of the commission, the commission shall be entitled to receive all service of process in any such proceeding, and shall have standing to intervene in the receivership or proceeding for all purposes.
601.59(8)(f)
(f) The commission shall analyze and correlate records, data, information and reports received from receivers and guaranty associations, and shall make recommendations for improving their performance to the compacting states. The commission shall include summary information and data regarding its oversight functions in its annual report.
601.59(8)(g)
(g) The commission shall attempt, upon the request of a member, to resolve any disputes or other issues which are subject to this compact and which may arise among compacting states and noncompacting states.
601.59(8)(h)
(h) The compacting states shall report to the commission on issues or activities of concern to them, and cooperate with and support the commission in the discharge of its duties and responsibilities.
601.59(8)(i)
(i) The commission shall promulgate an operating procedure providing for binding dispute resolution for disputes among receivers.
601.59(8)(j)
(j) The commission shall facilitate voluntary dispute resolution for disputes among guaranty associations and receivers.
601.59(9)
(9) Article IX — Receivership Functions of the Commission. 601.59(9)(a)(a) The commission has authority to act as receiver of any insurer domiciled, engaged in or doing business in a compacting state upon the request of the commissioner of such compacting state, or as otherwise provided in this compact. As receiver, the commission shall have all powers and duties pursuant to the receivership laws of the domiciliary state. The commission shall maintain accounts of receipts and disbursements of the estates for which it is acting as receiver, consistent with the accounting practices and procedures set forth in the bylaws. The commission shall cause an annual audit of each estate for which it is acting as receiver to be conducted by an independent certified public accountant. The costs and expenses of such audit shall be paid as administrative expenses from the assets of the estate. The commission may not cause an annual audit to be conducted of any estate which lacks sufficient assets to pay the costs and expenses of such audit. The commission as receiver may delegate its receivership duties and functions, and may contract with others for that purpose.
601.59(9)(b)
(b) The commission shall act as receiver of any insurer domiciled or doing business in a compacting state in the event that the member acting as receiver in that compacting state fails to comply with duly promulgated commission rules or operating procedures. The commission shall notify the member in writing of his or her noncompliance with commission rules or operating procedures. If the member acting as receiver fails to remedy the noncompliance within 10 days after receipt of the notification, the commission may petition the supervising court before which the receivership is pending for an order substituting and appointing the commission as receiver of the estate.
601.59(9)(c)
(c) The commission may not act as receiver of an estate that appears to lack sufficient assets to fund such receivership unless the compacting state makes provisions for the payment of the estate's administrative expenses satisfactory to the commission.
601.59(9)(d)
(d) The commission may act as deputy receiver for any insurer domiciled or doing business in a noncompacting state in accordance with that state's laws, upon request of that noncompacting state's commissioner and approval of the commission.
601.59(9)(e)
(e) With respect to receiverships pending in a compacting state on July 11, 1996, all of the following apply:
601.59(9)(e)1.
1. The commission may act as receiver of an insurer upon the request of that compacting state's member and approval of the commission.
601.59(9)(e)2.
2. The commission shall oversee, monitor and coordinate the activities of all receiverships pending in that compacting state regardless of whether the commission is acting as receiver of estates in that state.
601.59(10)(g)(g) The commission shall be exempt from all taxation in and by the compacting states.
601.59(10)(h)
(h) The commission may not pledge the credit of any compacting state, except by and with the appropriate legal authority of that compacting state.
601.59(10)(i)
(i) The commission shall keep complete and accurate accounts of all its internal receipts, including grants and donations, and disbursements of all funds, other than receivership assets, under its control. The internal financial accounts of the commission shall be subject to the accounting procedures established under its bylaws. The financial accounts and reports including the system of internal controls and procedures of the commission shall be audited annually by an independent certified public accountant. Upon the determination of the commission, but no less frequently than every 3 years, the review of such independent auditor shall include a management and performance audit of the commission. The report of such independent audit shall be made available to the public and shall be included in and become part of the annual report of the commission to the governors and legislatures of the compacting states. The commission's internal accounts, any workpapers related to any internal audit and any workpapers related to the independent audit, shall be confidential; provided, that such materials shall be made available in compliance with the order of any court of competent jurisdiction, pursuant to such reasonable rules as the commission shall promulgate and to any commissioner or governor of a compacting state, or their duly authorized representatives.
601.59(10)(j)
(j) No compacting state shall have any claim to or ownership of any property held by or vested in the commission or the commission acting as receiver or to any other commission funds held pursuant to the provisions of this compact.
601.59(11)
(11) Article XI — Compacting States, Effective Date and Amendment. 601.59(11)(a)(a) Any state is eligible to become a compacting state.
601.59(11)(b)
(b) The compact shall become effective and binding upon legislative enactment of the compact into law by 2 compacting states. Thereafter, it shall become effective and binding as to any other compacting state upon enactment of the compact into law by that state.
601.59(11)(c)
(c) Amendments to the compact may be proposed by the commission for enactment by the compacting states. No amendment shall become effective and binding upon the commission and the compacting states unless and until it is enacted into law by unanimous consent of the compacting states.
601.59(12)
(12) Article XII — Withdrawal, Default and Termination. 601.59(12)(a)(a) Once effective, the compact shall continue in force and remain binding upon each and every compacting state; provided, that a compacting state may withdraw from the compact by repealing the statute which enacted the compact into law.
601.59(12)(b)
(b) The effective date of withdrawal is the effective date of the repeal; provided, that the repeal shall not apply to any receiverships for which the commission is acting as receiver that are pending on the date of the repeal except by mutual agreement of the commission and the withdrawing state.
601.59(12)(c)
(c) The withdrawing state shall immediately notify the chairperson of the commission in writing upon the introduction of legislation repealing this compact in the withdrawing state.
601.59(12)(d)
(d) The commission shall notify the other compacting states of the withdrawing state's intention to withdraw within 60 days after its receipt of the notice under
par. (c).
601.59(12)(f)
(f) Reinstatement following withdrawal of any compacting state shall occur upon the withdrawing state reenacting the compact or upon a later date determined by the commission.
601.59(12)(g)
(g) If the commission determines that any compacting state has at any time defaulted in the performance of any of its obligations or responsibilities under this compact, the bylaws or duly promulgated rules, all rights, privileges and benefits conferred by this compact and any agreements entered into pursuant to this compact shall be suspended from the effective date of default as fixed by the commission. The grounds for default include, but are not limited to, failure of a compacting state to perform such obligations or responsibilities and any other grounds designated in commission rules. The commission shall immediately notify the defaulting state in writing of the defaulting state's suspension pending a cure of the default. The commission shall stipulate the conditions and the time period within which the defaulting state must cure its default. If the defaulting state fails to cure the default within the time period specified by the commission, the defaulting state shall be terminated from the compact upon an affirmative vote of a majority of the compacting states and all rights, privileges and benefits conferred by this compact shall be terminated from the effective date of termination.
601.59(12)(h)
(h) Within 60 days after the effective date of termination of a defaulting state, the commission shall notify the governor and the majority and minority leaders of the defaulting state's legislature of such termination.
601.59(12)(i)
(i) The termination of a defaulting state shall apply to all receiverships for which the commission is acting as receiver that are pending on the effective date of termination except by mutual agreement of the commission and the defaulting state.
601.59(12)(k)
(k) Reinstatement following termination of any compacting state requires both a reenactment of the compact by the defaulting state and the approval of the commission pursuant to the rules.
601.59(12)(L)
(L) The compact dissolves effective upon the date of the withdrawal or the termination by default of the compacting state which reduces membership in the compact to one compacting state.
601.59(12)(m)
(m) Upon the dissolution of this compact, the compact becomes null and void and shall be of no further force or effect, and the business and affairs of the commission shall be wound up and any surplus funds shall be distributed in accordance with the bylaws.
601.59(13)
(13) Article XIII — Severability and Construction. 601.59(13)(a)(a) The provisions of this compact shall be severable, and if any phrase, clause, sentence or provision is declared unenforceable by a court of competent jurisdiction, the remaining provisions of the compact shall be enforceable.
601.59(14)
(14) Article XIV — Binding Effect of Compact and Other Laws. 601.59(14)(a)(a) Nothing herein prevents the enforcement of any other law of a compacting state that is not inconsistent with this compact.
601.59(14)(b)
(b) All lawful actions of the commission, and operating procedures promulgated by the commission, are binding upon the compacting states. All agreements between the commission and the compacting states are binding in accordance with their terms. Upon the request of a party to a conflict over meaning or interpretation of commission actions, and upon a majority vote of the compacting states, the commission may issue advisory opinions regarding such meaning or interpretation.
601.59(14)(c)
(c) In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers or jurisdiction sought to be conferred by such provision upon the commission shall be ineffective and such obligations, duties, powers or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which such obligations, duties, powers or jurisdiction are delegated by law in effect at the time this compact becomes effective.
601.59 History
History: 1995 a. 462.
PROCEDURES AND ENFORCEMENT
601.61
601.61
Auxiliary procedural powers. The commissioner may administer oaths, take testimony, issue subpoenas and take depositions in connection with any hearing, meeting, examination, investigation or other proceeding that the commissioner may conduct.
601.61 History
History: 1979 c. 102 s.
236 (6).
601.62(1)(1)
Hearing required. Whenever
chs. 600 to
655 expressly so provide, the commissioner shall hold a hearing before issuing an order.
601.62(2)
(2) Special insurance hearings. Chapter 227 shall apply to all hearings under
chs. 600 to
655, except those for which special procedures are prescribed.
601.62(3)
(3) Adjudicatory hearings. In addition to the requirements of
ch. 227, the following provisions apply:
601.62(3)(a)
(a)
Subsequent hearings. Whenever an order is issued without a hearing, any person aggrieved by the order may demand a hearing within 30 days after the date on which the notice of the order was mailed. Failure to demand a hearing within the period prescribed therefor is waiver of a hearing. The demand shall be in writing and shall be served on the commissioner by delivering a copy to the commissioner or by leaving it at the commissioner's office. The commissioner shall thereupon hold a hearing not less than 10 nor more than 60 days after service of the demand.
601.62(3)(c)
(c)
Reduction and extension of periods. Upon request of the person demanding the hearing or of any other aggrieved person, the commissioner may reduce or extend the period prescribed by
par. (a) for holding a hearing.
601.62(4)
(4) Fees in investigations and hearings. The fees for stenographic services in investigations, examinations and hearings may not exceed the sum provided for like services in the circuit court. The fees of officers, witnesses, interpreters and stenographers on behalf of the commissioner or the state shall be paid by the state treasurer upon the warrant of the department of administration, authorized by the certificate of the commissioner, and shall be charged to the appropriation under
s. 20.145 (1) (g).
601.62(5)(a)(a) No natural person is excused from attending and testifying or from producing any document or record before the commissioner, or from obedience to the subpoena of the commissioner, or from appearing in any proceeding instituted by the commissioner, on the ground that the testimony or evidence required from the person may tend to incriminate the person or subject the person to a penalty or forfeiture; but no such person may be criminally prosecuted for or on account of his or her testimony or evidence, after claiming privilege against self-incrimination, except that the person testifying is not exempt from prosecution and punishment for perjury, false swearing or contempt committed in testifying.
601.62 Cross-reference
Cross Reference: See also ch.
Ins 5, Wis. adm. code.
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.
