616.09(1)(d)3.
3. Maintain sufficient reserves to discharge its obligations and for any prepayment of dues or fees collected.
616.09(2)
(2) Corporations organized under s. 616.08. 616.09(2)(a)(a) Except as provided in
par. (b), corporations organized under
s. 616.08 are subject to all applicable provisions of
chs. 600 to
646.
616.10
616.10
Exemption from taxation. Every mutual designated a school benefit insurer under
s. 616.03, every plan authorized under
s. 616.06, and every corporation organized under
s. 616.08 is declared to be a charitable and benevolent corporation, and its property, real, personal and mixed, and its income and property transferred to it, are exempt from taxation as provided in
ss. 70.11,
71.26 (1) (a) and
71.45 (1) (a).
616.14
616.14
Limitations applicable to plans under s. 616.06. 616.14(1)(1)
Governing body. The governing body of a plan shall be the same as the governing body of the sponsoring organization, but must have at least 3 members. If the governing body of the sponsoring organization consists of fewer than 3 members, the governing body of the sponsoring organization shall appoint to the governing body of the plan the number of persons necessary to comply with this subsection. Appointments under this subsection shall be made under rules adopted by the governing body of the sponsoring organization.
616.14(2)
(2) Size. No plan under
s. 616.03,
616.06 or
616.08 may operate unless the plan covers a number of students large enough to give stability to its loss experience.
616.14 History
History: 1979 c. 261.
616.18
616.18
Restrictions on transactions. 616.18(1)
(1)
Voidable transactions. Any material transaction between a plan or corporation authorized under this subchapter and one or more of its management or members of its governing board, or with any person in a position to influence the vote of any member of its governing board or the decision of any of its management or with any person having power to control the plan or corporation is voidable by the plan or corporation unless:
616.18(1)(a)
(a) The transaction at the time it is entered into is reasonable and fair to the interests of the plan or corporation and its members;
616.18(1)(b)
(b) The transaction has, with full knowledge of its terms and of the interests involved, been approved in advance by the governing board or by the members; and
616.18(1)(c)
(c) The transaction has been reported to the commissioner immediately after approval under
par. (b).
616.18(2)(a)(a) This section does not apply to policies of insurance issued by the plan or corporation in the normal course of its business.
616.18(2)(b)
(b) The commissioner may by rule exempt other classes of transactions from the reporting requirement of
sub. (1) (c), if the purposes of this section can be achieved without the report.
616.18 History
History: 1979 c. 261.
616.20
616.20
Conversion of plans under s. 616.06 to mutuals under ch. 611 or service insurance corporations under ch. 613. 616.20(1)(1)
Authorization. Under a proposal proposed by the officers of a plan operating under
s. 616.06 and approved by the commissioner and by a majority of the members voting, the plan may be converted to a mutual under
ch. 611 or a service insurance corporation under
ch. 613.
616.20(2)
(2) Notice and voting rights. Voting on the conversion is required only if the bylaws provide for it. Voting shall be as provided in the bylaws. If voting is required, but there is no notice provision in the bylaws, the officers shall give notice of the plan to convert under
sub. (1) to all members entitled to vote on the conversion at least 30 days before the plan is submitted to the members for a vote. Whether or not voting is required, any member who feels aggrieved by the conversion plan may communicate objections to the commissioner who shall give them consideration before approving the plan. If voting is required by the bylaws, the commissioner may not approve the plan until at least 60 days after notice has been given to all members and 30 days after the voting on the plan. In all cases the commissioner may approve the plan only if the conversion plan protects the legitimate interests of the members.
616.20(3)
(3) Membership and ownership of assets. Members of the plan shall be the members of the mutual or service insurance corporation created by conversion under this section. Assets of the plan shall become assets of the new corporation, and all existing contracts shall become the contracts of the new corporation.
616.20(4)
(4) Liability of officers. If the commissioner approves a conversion under this section, no officer is liable to any member for losses suffered solely as a result of the conversion.
616.20(5)
(5) Fees. A new corporation formed under this section is not subject to the fees under
s. 601.31 (1) or
(2).
616.20 History
History: 1979 c. 261.
MOTOR CLUB SERVICE CONTRACTS
616.71
616.71
Motor club service; definitions. As used in this subchapter, unless the context or subject matter otherwise requires:
616.71(1)
(1) "Agent" means one who solicits the purchase of service contracts, as herein defined, or transmits for another any such contract, or application therefor, to or from the company, or acts or aids in any manner in the delivery or negotiation of any such contract, or in the renewal or continuance thereof.
616.71(2)
(2) "Bail bond service" means any act by a company, as herein defined, the purpose of which is to furnish to, or procure for, any person accused of violation of any law of this state a cash deposit, bond or other undertaking required by law in order that the accused might enjoy personal freedom pending trial.
616.71(3)
(3) "Buying and selling service" means any act by a company, as herein defined, whereby the holder of a service contract with any such company is aided in any way in the purchase or sale of an automobile.
616.71(4)
(4) "Commissioner" means the commissioner of insurance, or the commissioner's assistants or deputies, or other persons authorized to act for the commissioner.
616.71(5)
(5) "Company" means any person, firm, partnership, company, association or corporation engaged in selling, furnishing or procuring, as principal, for a consideration, motor club service.
616.71(6)
(6) "Discount service" means any act by a company, as herein defined, resulting in the giving of special discounts, rebates or reductions of price on gasoline, oil, repairs, parts, accessories or service for motor vehicles, to holders of service contracts with any such company.
616.71(7)
(7) "Emergency road service" means any act by a company, as herein defined, consisting of the adjustment, repair or replacement of the equipment, tires or mechanical parts of an automobile so as to permit it to be operated under its own power.
616.71(8)
(8) "Financial service" means any act by a company, as herein defined, whereby loans or other advances of money, with or without security, are made to holders of service contracts with any such company.
616.71(9)
(9) "Insurance service" means any act by a company, as herein defined, consisting of the selling or giving with a service contract, as herein defined, or as a result of membership in or affiliation with a company, as herein defined, a policy of insurance covering liability or loss by the holder of a service contract with any such company as the result of injury to the person of such service contract holder following an accident resulting from the ownership, maintenance, operation or use of a motor vehicle.
616.71(10)
(10) "Legal service" means any act by a company, as herein defined, consisting of the hiring, retaining, engaging or appointing of an attorney or other person to give professional advice to, or represent, holders of service contracts with any such company, in any court, as the result of liability incurred by the right of action accruing to the holder of a service contract as a result of the ownership, operation, use or maintenance of a motor vehicle.
616.71(11)
(11) "Map service" means any act by a company, as herein defined, by which road maps are furnished without cost to holders of service contracts with any such company.
616.71(12)
(12) "Motor club service" means the rendering, furnishing or procuring of 3 or more of the following, to any person, in connection with that person's ownership, operation, use, or maintenance, of a motor vehicle, in consideration of that person's being or becoming a member of, affiliated with or entitled to membership or other motor club service from any company rendering, procuring or furnishing those services by virtue of any agreement or understanding with any such company:
616.71(13)
(13) "Service contract" means any written agreement whereby any company, as herein defined, for a consideration, promises to render, furnish, or procure for any other person, whether that person is a member of such company or otherwise, motor club service, as herein defined.
616.71(14)
(14) "Theft service" means any act by a company, as herein defined, the purpose of which is to locate, identify or recover a motor vehicle, owned or controlled by the holder of a service contract with any such company, which has been, or may be, stolen, or to detect or apprehend the person guilty of such theft.
616.71(15)
(15) "Touring service" means any act by a company, as herein defined, by which touring information is furnished without cost to holders of service contracts with any such company.
616.71(16)
(16) "Towing service" means any act by a company, as herein defined, consisting of the drafting or moving of a motor vehicle from one place to another under other than its own power.
616.72
616.72
License to sell motor club service. No company shall sell or offer for sale any motor club service without first having deposited with the commissioner the sum of $25,000, in cash or securities approved by the commissioner, or, in lieu thereof, a bond in the form prescribed by the commissioner, payable to the state of Wisconsin, in the sum of $50,000, with corporate surety approved by the commissioner, conditioned upon the faithful performance in the sale or rendering of motor club service and payment of any fines or penalties levied against it for failure to comply with this chapter. Upon the depositing of such security with the commissioner, it shall be the duty of said commissioner to issue a certificate of authority to said company. The provisions of this section shall not affect or apply to any company heretofore organized which has been in continuous operation in this state for a period of more than 3 years immediately prior to May 24, 1933 and has a fully paid annual membership of more than 500 members within this state. The foregoing cash deposit or bond is not required in any instance as a penalty, but for the protection of the public only.
616.72 History
History: 1977 c. 339 ss.
8,
44; Stats. 1977 s. 616.72.
616.74
616.74
Manner of obtaining company license; fee. 616.74(1)(1) No certificate of authority shall be issued by the commissioner until the company has filed with the commissioner the following:
616.74(1)(a)
(a) A formal application in such form and detail as the commissioner may require, executed under oath by its president or other principal officer;
616.74(1)(b)
(b) A certified copy of its charter or articles of incorporation and its bylaws, if any;
616.74(1)(c)
(c) A certificate from the department of financial institutions, if it is a nonprofit corporation, that it has complied with the corporation laws of this state; if it is a corporation the stock of which has been or is being sold to the general public, a certificate from the division of securities that it has complied with the requirements of the securities law of this state.
616.74(2)
(2) No certificate of authority shall be issued by the commissioner until the company has paid to the commissioner the fee required by
s. 601.31 (1) (b).
616.74(3)
(3) Every certificate of authority issued hereunder shall expire annually on July 1, of each year, unless sooner revoked or suspended, as hereinafter provided.
616.74 History
History: 1971 c. 307;
1977 c. 339 s.
8; Stats. 1977 s. 616.74;
1979 c. 102 s.
237;
1991 a. 316;
1995 a. 27.
616.76
616.76
Form of service contract. No service contract shall be executed, issued, or delivered in this state until the form thereof has been approved in writing by the commissioner.
616.76 History
History: 1977 c. 339 s.
8; Stats. 1977 s. 616.76.
616.77
616.77
Execution of service contract. Every service contract, executed, issued, or delivered in this state shall be made in duplicate, and shall be dated and signed by the company issuing the service contract and by the party purchasing the service contract, and one copy shall be kept by the company, and the other copy shall be delivered to the party purchasing the service contract.
616.77 History
History: 1977 c. 339 s.
8; Stats. 1977 s. 616.77;
1987 a. 166.
616.78
616.78
Contents of contract. No service contract shall be executed, issued, or delivered in this state unless it contains the following:
616.78(1)
(1) The exact corporate or other name of the company.
616.78(2)
(2) The exact location of its home office and of its usual place of business in this state, giving street number and city.
616.78 History
History: 1977 c. 339 s.
8; Stats. 1977 s. 616.78.
616.79
616.79
Only agents to solicit business. No person shall solicit, or aid in the solicitation of, another person to purchase a service contract issued by a company not duly licensed under this subchapter.
616.79 History
History: 1977 c. 339 ss.
8,
44;
1979 c. 355 s.
236.
616.80
616.80
Misrepresentations forbidden. No company, and no officer or agent thereof, shall orally, or in writing, misrepresent the terms, benefits, or privileges of any service contract issued, or to be issued, by it.
616.80 History
History: 1977 c. 339 s.
8; Stats. 1977 s. 616.80.
616.81
616.81
Company always bound by contract. Any service contract made, issued, or delivered contrary to any provision of this subchapter shall nevertheless be valid and binding on the company.
616.81 History
History: 1977 c. 339 ss.
8,
44; Stats. 1977 s. 616.81;
1979 c. 355 s.
236.
616.82
616.82
Person exempted. Nothing in this subchapter applies to an authorized attorney at law acting in the usual course of the profession, nor to any insurance company, bonding company, or surety company now or hereafter duly and regularly licensed and doing business as such under the laws of this state.
616.82 History
History: 1977 c. 339 ss.
8,
44; Stats. 1977 s. 616.82;
1979 c. 89,
176;
1979 c. 355 s.
236.
