601.51 Annotation
Legislative Council Note, 1975: This continues the substance of s. 204.04 (1) and (2). [Bill 642-S]
601.53
601.53
Insolvency notices. 601.53(1)(1)
Insurers doing a surety business. Whenever any authorized insurer doing a surety business is placed in liquidation under
ch. 645 or a similar law of another state or jurisdiction, the commissioner shall immediately notify the director of state courts. Upon receipt of the notice, the director of state courts shall notify each register in probate, probate registrar and clerk of circuit court, who shall notify and require every fiduciary that has filed a bond on which the company is surety to file a new bond with a different surety.
601.53(2)
(2) Other. The commissioner as liquidator of an insurer shall send notices as provided in
s. 645.47.
601.53 Annotation
Legislative Council Note, 1975: Sub. (1) continues the substance of s. 204.04 (3). Sub. (2) is new and is a useful cross reference. [Bill 642-S]
601.55
601.55
Nondomestic insurers; additional requirements. If another state or a foreign country requires domestic insurers doing business in that state or foreign country to deposit security, to pay a fee or tax not included in the computation under
s. 76.66, to pay a fine or penalty or to comply with an obligation, prohibition or restriction that is in addition to or greater than requirements imposed by this state on nondomestic insurers doing a similar business in this state, this state may, as a condition for issuing a license to an insurer domiciled in that state or foreign country, impose a similar security requirement, fee, tax, fine, penalty, obligation, prohibition or restriction.
601.55 History
History: 1989 a. 31.
601.56
601.56
Study and rules on standards for health insurers. 601.56(1)(a)(a) The commissioner shall study whether, in their transactions with health care providers, compliance by health insurers with certain standards, such as standard codes, forms and formats, is likely to reduce the cost of health care administration. The study shall investigate compliance with standards in at least all of the following types of transactions between insurers and health care providers:
601.56(1)(b)
(b) On or before February 1, 1994, the commissioner shall submit the results of the study to the legislature under
s. 13.172 (2) and to the governor.
601.56(2)
(2) Rules. If, as a result of the study under
sub. (1), the commissioner determines that in transactions with health care providers compliance by health insurers with certain standards will likely reduce the cost of health care administration, the commissioner shall promulgate rules to establish and implement appropriate standards.
601.56 History
History: 1993 a. 16.
601.57
601.57
Study and rules on health insurance identification cards. 601.57(1)(a)(a) The commissioner, in consultation with the department of health and family services, shall study the feasibility and cost-effectiveness of requiring every health insurer to issue to its insureds uniform machine-readable health insurance identification cards and to establish a computerized support system for the cards that will accept and respond to electronically conveyed requests from health care providers for information related to an insured, such as eligibility, coverages and authorizations. The study shall consider the feasibility and cost-effectiveness of including the medical assistance program under
subch. IV of ch. 49 in the system of identification cards and the computerized support system and the feasibility of using those systems to coordinate the payment of benefits by health insurers and the medical assistance program.
601.57(1)(b)
(b) On or before February 1, 1994, the commissioner shall submit the results of the study to the legislature under
s. 13.172 (2) and to the governor.
601.57(2)
(2) Rules. If, as a result of the study under
sub. (1), the commissioner determines that a health insurance identification card system and its computerized support system are feasible and would be cost-effective, the commissioner shall promulgate rules to establish and implement the systems.
601.57 History
History: 1993 a. 16;
1995 a. 27 ss.
7007,
9126 (19).
601.59
601.59
Interstate insurance receivership compact. The interstate insurance receivership compact is hereby enacted into law and entered into by this state with all other jurisdictions legally joining therein, in the form substantially as follows:
601.59(1)
(1) Article I — Purposes. Through means of joint and cooperative action among the compacting states, the purposes of this compact include all of the following:
601.59(1)(a)
(a) To promote, develop and facilitate orderly, efficient, cost-effective and uniform insurer receivership laws and operations.
601.59(1)(b)
(b) To coordinate interaction between insurer receivership and guaranty association operations.
601.59(1)(c)
(c) To create the interstate insurance receivership commission.
601.59(1)(d)
(d) To perform these and such other related functions as may be consistent with the state regulation of the business of insurance pursuant to the McCarran-Ferguson act.
601.59(2)
(2) Article II — Definitions. In this compact:
601.59(2)(a)
(a) "Bylaws" means those bylaws prescribed by the commission for its governance, or for directing or controlling the commission's actions or conduct.
601.59(2)(b)
(b) "Compacting state" means any state which has enacted enabling legislation for this compact.
601.59(2)(c)
(c) "Commission" means the interstate insurance receivership commission created by this compact.
601.59(2)(d)
(d) "Commissioner" means the chief insurance regulatory official of a state.
601.59(2)(e)
(e) "Deputy receiver" means any person appointed or retained by a receiver and who is the receiver's duly authorized representative for administering one or more estates.
601.59(2)(f)
(f) "Domiciliary state" means the state in which an insurer is incorporated or organized; or, in the case of an alien insurer, its state of entry; or, in the case of an unauthorized insurer not incorporated, organized, or entered in any state, a state where the insurer is engaged in or doing business.
601.59(2)(g)
(g) "Estate" means the assets and liabilities of any insurer in receivership.
601.59(2)(h)
(h) "Guaranty association" means an insurance guaranty fund or association or any similar entity now or hereafter created by statute in a compacting state, other than a receivership, to pay or assume, in whole or in part, the contractual claim obligations of insolvent insurers.
601.59(2)(i)
(i) "Insurer" means any person or entity that has done, purports to do, is doing or is licensed to do any insurance or reinsurance business, or that is or has been subject to the authority of, or to liquidation, rehabilitation, supervision, conservation or ancillary receivership by, any commissioner.
601.59(2)(j)
(j) "Member" means the commissioner of a compacting state or his or her designee, who shall be a person officially connected with the commissioner and who is wholly or principally employed by the commissioner.
601.59(2)(k)
(k) "Noncompacting state" means any state which has not enacted enabling legislation for this compact.
601.59(2)(L)
(L) "Operating procedures" means those procedures promulgated by the commission implementing a rule, an existing law in a compacting state or a provision of this compact.
601.59(2)(m)
(m) "Publication" means the act of publishing in the official state publication in a compacting state or in such other publication as may be established by the commission.
601.59(2)(n)
(n) "Receiver" means receiver, liquidator, rehabilitator, conservator or ancillary receiver as the context requires.
601.59(2)(o)
(o) "Receivership" means any liquidation, rehabilitation, conservation or ancillary receivership proceeding as the context requires.
601.59(2)(p)
(p) "Rules" means acts of the commission, duly promulgated pursuant to
sub. (7).
601.59(2)(q)
(q) "State" means any state, district or territory of the United States of America.
601.59(3)
(3) Article III — Establishment of the Commission and Venue. The compacting states hereby create the interstate insurance receivership commission. The commission is a body corporate of each compacting state. The commission is a not-for-profit entity, separate and distinct from the compacting states. The commission is solely responsible for its liabilities. Except as otherwise specifically provided in state or federal law in the jurisdiction where the commission's principal office is located or where the commission is acting as receiver, venue is proper, and judicial proceedings by or against the commission shall be brought, in a court of competent jurisdiction where the commission's principal office is located.
601.59(4)
(4) Article IV — Powers of the Commission. The commission shall have all of the following powers:
601.59(4)(b)
(b) To promulgate operating procedures which shall be binding in the compacting states to the extent and in the manner provided in this compact.
601.59(4)(c)
(c) To oversee, supervise and coordinate the activities of receivers in compacting states.
601.59(4)(d)
(d) To act as receiver of insurers organized under the laws of, engaged in or doing the business of insurance in, a compacting state upon the request of the commissioner of such state or when grounds for receivership by the commission exist under
sub. (9).
601.59(4)(e)
(e) To act as deputy receiver of insurers organized under the laws of, engaged in or dong the business of insurance in, a noncompacting state in accordance with
sub. (9).
601.59(4)(f)
(f) To act as ancillary receiver in a compacting state of an insurer domiciled in a noncompacting state.
601.59(4)(g)
(g) To monitor the activities and functions of guaranty associations in the compacting states.
601.59(4)(h)
(h) To delegate its operating authority or functions; provided, that its rule-making authority under
sub. (7) shall not be delegated.
601.59(4)(i)
(i) To bring or prosecute legal proceedings or actions in its name as the commission, or in the name of the commission acting as receiver.
601.59(4)(j)
(j) To bring or prosecute legal proceedings or actions as receiver on behalf of an estate or its policyholders and creditors; provided, that any guaranty association's standing to sue or be sued under applicable law shall not be affected.
601.59(4)(jm)
(jm) To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence.
601.59(4)(L)
(L) To purchase and maintain insurance and bonds.
601.59(4)(m)
(m) To borrow, accept or contract for services of personnel, including, but not limited to, members and their staff.
601.59(4)(n)
(n) To elect or appoint such officers, attorneys, employees or agents, and to fix their compensation, define their duties and determine their qualifications; and to establish the commission's personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation and qualifications of personnel.
601.59(4)(o)
(o) To accept any and all donations and grants of money, equipment, supplies, materials and services, and to receive, utilize and dispose of the same.
601.59(4)(p)
(p) To lease, purchase, accept gifts or donations of, or otherwise to own, hold, improve or use, any property, real, personal or mixed.
601.59(4)(pm)
(pm) To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, real, personal or mixed.
601.59(4)(q)
(q) To enforce compliance with commission rules, operating procedures and bylaws.
601.59(4)(r)
(r) To provide for dispute resolution among compacting states and receivers.
601.59(4)(s)
(s) To represent and advise compacting states on issues relating to insurers domiciled or doing business in noncompacting jurisdictions, consistent with the purposes of this compact.
601.59(4)(t)
(t) To provide advice and training to receivership personnel of compacting states, and to be a resource for compacting states by maintaining a reference library of relevant materials.
601.59(4)(w)
(w) To appoint committees including, but not limited to, an industry advisory committee and an executive committee of members.
601.59(4)(x)
(x) To provide and receive information relating to receiverships and guaranty associations, and to cooperate with law enforcement agencies.
601.59(4)(z)
(z) To perform such other functions as may be necessary or appropriate to achieve the purposes of this compact as may be consistent with the state regulation of the business of insurance pursuant to the McCarran-Ferguson act.
601.59(5)
(5) Article V — Organization of the Commission. 601.59(5)(a)(a) Each compacting state shall have one member. Each member shall be qualified to serve in such capacity under the applicable law of the compacting state. Each compacting state retains the discretionary right to determine the due election or appointment and qualification of its own commissioner, and to fill all vacancies of its member. Each member shall be entitled to one vote.
601.59(5)(b)
(b) The commission shall, by a majority of the members, prescribe bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes of the compact, including, but not limited to, all of the following:
601.59(5)(b)2.
2. Providing reasonable standards and procedures for the establishment of committees and governing any general or specific delegation of any authority or function of the commission.
601.59(5)(b)3.
3. Providing reasonable procedures for calling and conducting meetings of the commission, and ensuring reasonable notice of each such meeting.
601.59(5)(b)4.
4. Establishing the titles and responsibilities of the officers of the commission.
601.59(5)(b)5.
5. Providing reasonable standards and procedures for the establishment of the personnel policies and programs of the commission. Notwithstanding any civil service or other similar laws of any compacting state, the bylaws shall exclusively govern the personnel policies and programs of the commission.
601.59(5)(b)6.
6. Providing a mechanism for winding up the operations of the commission and the equitable return of any surplus funds that may exist after the dissolution of the compact after the payment or reserving of all of its debts and obligations.
601.59(5)(c)
(c) The commission shall, by a majority of the members, elect annually from among its members a chairperson and a vice chairperson, each of whom shall have such authorities and duties as may be specified in the bylaws. The chairperson or, in his or her absence or disability, a member designated in accordance with the bylaws, shall preside at all meetings of the commission. The officers so elected shall serve without compensation or remuneration from the commission; provided that, subject to the availability of budgeted funds, the officers shall be reimbursed for any actual and necessary costs and expenses incurred by them in the performance of their duties and responsibilities as officers of the commission.
601.59(5)(d)
(d) The commission may, by a majority of the members, appoint or retain an executive director for such period, upon such terms and conditions and for such compensation as the commission determines appropriate. The executive director shall serve as secretary to the commission, but shall not be a member of the commission. The executive director shall hire and supervise such other staff as may be authorized by the commission.
601.59(5)(e)
(e) The commission shall maintain its corporate books and records in accordance with the bylaws.
