613.69 History
History: 1975 c. 223;
1997 a. 79.
REORGANIZATION OF CORPORATIONS
613.72
613.72
Merger of service insurance corporations. 613.72(1)(1)
Authorization. Any 2 or more domestic service insurance corporations may merge, if they provide services of the same or a related nature, or if the services complement one another or there are other reasons that make it reasonable for a single corporation to render both. A written plan of merger shall be prepared, setting forth all the terms of the proposed merger and its effect on policyholders and members of both corporations. The plan shall also contain the articles and bylaws of the proposed new corporation.
613.72(2)
(2) Commissioner's approval required. No proposed merger plan under this section may be submitted to the members until the commissioner approves it.
613.72(3)
(3) Grounds for disapproval. The commissioner shall approve the plan unless the commissioner finds, after a hearing, that it is contrary to the law or to the interests of insureds or of the public of this state.
613.72(4)
(4) Members' approval required. The plan must be approved separately by two-thirds of the votes cast by the members of each corporation included in the plan.
613.72(5)
(5) Application of ch. 181. Except as otherwise provided in this section,
ss. 181.1101 to
181.1108 apply to service insurance corporations.
613.74
613.74
Voluntary dissolution of solvent service insurance corporations. 613.74(2)
(2) Plan of dissolution. At least 60 days prior to the submission to a vote of the members of any proposed voluntary dissolution of a service insurance corporation under
s. 181.1401, the plan shall be filed with the commissioner. The commissioner may require the submission of such additional information as will establish the financial condition of the corporation or other facts relevant to the proposed dissolution. If the members adopt the resolution to dissolve, the commissioner shall, within 30 days after the adoption of the resolution, begin to examine the corporation. The commissioner shall approve the dissolution unless the commissioner finds, after a hearing, that it is insolvent or may become insolvent in the process of dissolution. Upon approval, the corporation may dissolve under
ss. 181.1401 to
181.1407. Upon disapproval, the commissioner shall petition the court for liquidation or for rehabilitation under
ch. 645.
613.74(3)
(3) Conversion to involuntary liquidation. The corporation may at any time during the liquidation under
ss. 181.1401 to
181.1407 apply to the commissioner to have the liquidation continued under the commissioner's supervision; thereupon the commissioner shall apply to the court for liquidation under
s. 645.41 (10).
613.74(4)
(4) Revocation of voluntary dissolution. If the corporation revokes the voluntary dissolution proceedings under
s. 181.1404, a copy of the revocation of voluntary dissolution proceedings shall be filed with the commissioner.
613.75
613.75
Conversion of a service insurance corporation into a stock or mutual insurance corporation. 613.75(1)(1)
Authorization. Any service insurance corporation may be converted into a stock insurance corporation under
ch. 611 upon complying with
sub. (2) and as much of
s. 611.76 as is applicable, or into a mutual under
ch. 611 upon complying with
sub. (2) and
s. 611.75.
613.75(2)
(2) Approval by persons entitled to vote. The commissioner shall not issue an organization permit under
s. 611.13 (3) or a certificate of authority under
s. 611.22 (3) unless the conversion has been approved by a mail vote of at least two-thirds of those voting, including an affirmative vote of at least half of the members, or by a vote of at least two-thirds of the members present or represented by proxy at a special meeting called for that purpose.
613.75 History
History: 1975 c. 223;
1979 c. 102.
613.78
613.78
Transfer of business or assets. 613.78(2)
(2) Report to commissioner. Any action by which a service insurance corporation proposes to transfer to another person or to reinsure any part of its insurance business, other than in the normal and usual course of business, or to sell, lease, exchange, mortgage, pledge or otherwise dispose of or encumber more than 25 percent of its assets, shall be reported to the commissioner not less than 30 days in advance of the proposed effective date. The commissioner may defer the effective date for an additional period not exceeding 30 days by written notice to the corporation before expiration of the initial 30-day period.
613.78(3)
(3) Disapproval. The commissioner may, within the 30-day period or its extension under
sub. (2), prohibit the proposed action if it is contrary to law, the interests of insureds or the public or if it will make possible the circumvention of any of the requirements of
ss. 613.72 to
613.75.
613.78 History
History: 1975 c. 223;
1997 a. 79.
SUPPLEMENTARY PROVISIONS
613.80
613.80
Hospital service insurance corporations. 613.80(1)(1)
Statement of purpose. This subsection is a guide to the interpretation and application of
sub. (2). Payment for adequate health care services is a problem of great social importance, with many ramifications. New and better methods of payment for and delivery of health care services are needed. It is hereby stated to be the public policy of this state to encourage the formation of nonprofit hospital service insurance corporations under this chapter, on an economically sound basis, in the hope that they may ease the burden of payment for hospital services and health care for large numbers of the population, without any burden on the public treasury and free from the profit motive. If such corporations can contribute to the solution of such serious social and economic problems, they merit the support of the state. It is the policy of this state that such corporations should develop without changing the status of voluntary hospitals and that, by enabling many citizens to procure adequate hospital services for themselves, they should leave the hospitals more able to provide subsidized services to those unable to pay.
613.80(2)
(2) Authorization. Nonprofit hospital service insurance corporations may be organized under this chapter to establish, maintain and operate service plans to implement
sub. (1).
613.80(3)
(3) Continuation. Any corporation existing under s.
182.032, 1973 stats., prior to May 5, 1976 is deemed to have been organized under this section.
613.80 History
History: 1975 c. 223.
613.90
613.90
Vicarious liability. No member of or other provider for a service insurance corporation is liable, solely by virtue of a relationship with the corporation or of the providers' contract, for any act, omission or default of the corporation or of any other member of or provider for the corporation.
613.90 History
History: 1975 c. 223,
421.
613.92
613.92
Administrative agent. Service insurance corporations organized pursuant to the authorization under
ss. 148.03,
447.13 and
613.80 may act as administrative agent for a government instrumentality performing an insurance, public assistance or related function.
613.92 History
History: 1975 c. 223.
