609.96(1)(a)
(a) Except as provided in par.
(b), if a health maintenance organization insurer is first licensed or organized on or after July 1, 1989, the minimum capital or permanent surplus for the health maintenance organization insurer is $750,000.
609.96(1)(b)
(b) The commissioner may require a greater amount or permit a lesser amount than that specified under sub.
(1) by rule promulgated, or order issued, on or after July 1, 1989.
609.96(2)
(2)
Initial expendable surplus. A health maintenance organization insurer subject to sub.
(1) shall have an initial expendable surplus, after payment of all organizational expenses, of at least 50 percent of the minimum capital or minimum permanent surplus required under sub.
(1), or such other percentage as the commissioner specifies by rule promulgated, or order issued, on or after July 1, 1989.
609.96 History
History: 1989 a. 23.
609.97
609.97
Compulsory and security surplus. 609.97(1)(1)
Amount of compulsory surplus. Except as otherwise provided by rule or order under sub.
(2), a health maintenance organization insurer, whether first licensed or organized before, on or after July 1, 1989, shall maintain a compulsory surplus in an amount determined as follows:
609.97(1)(a)
(a) Beginning on July 1, 1989, and ending on December 31, 1989, the compulsory surplus shall be equal to at least the greater of $200,000 or 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
609.97(1)(b)
(b) Beginning on January 1, 1990, and ending on December 31, 1991, the compulsory surplus shall be equal to at least the greater of $500,000 or:
609.97(1)(b)1.
1. If before January 1, 1991, 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
609.97(1)(b)2.a.
a. If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is less than 90 percent, 4.5 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
609.97(1)(b)2.b.
b. If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is at least 90 percent, 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
609.97(1)(c)
(c) Beginning on January 1, 1992, the compulsory surplus shall be equal to at least the greater of $750,000 or:
609.97(1)(c)1.
1. If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is less than 90 percent, 6 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
609.97(1)(c)2.
2. If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is at least 90 percent, 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
609.97(2)
(2)
Modification by rule or order. The commissioner may require a greater amount or permit a lesser amount than that specified under sub.
(1) by rule promulgated, or order issued, on or after July 1, 1989. The commissioner may consider the risks and factors described under s.
623.11 (1) (a) and
(b) in promulgating a rule or issuing an order under this subsection.
609.97(3)
(3)
Amount of security surplus. A health maintenance organization insurer, whether first licensed or organized before, on or after July 1, 1989, shall maintain a security surplus in the amount set by the commissioner under s.
623.12.
609.97 History
History: 1989 a. 23.
609.98
609.98
Special deposit. 609.98(2)(a)(a) Before April 1, 1990, and before April 1 of each following year, a health maintenance organization insurer shall deposit under s.
601.13 an amount that is at least equal to the lesser of the following:
609.98(2)(a)1.
1. An amount necessary to establish or maintain a deposit equaling 1 percent of premiums written in this state by the health maintenance organization insurer in the preceding calendar year.
609.98(2)(a)2.
2. With respect to the amount due before April 1, 1990, 0.5 percent of premiums written in this state by the health maintenance organization insurer in the preceding calendar year, unless otherwise provided by rule or order under par.
(b).
609.98(2)(a)3.
3. With respect to the amount due in the years after 1990, one-third of 1 percent of the premiums written in this state by the health maintenance organization insurer in the preceding calendar year, unless otherwise provided by rule or order under par.
(b).
609.98(2)(b)
(b) The commissioner may, by rule or order, require that the deposit under par.
(a) be in an amount greater than that provided under par.
(a) 2. or
3., but the commissioner may not require an amount exceeding the amount provided under par.
(a) 1. 609.98(3)
(3)
Status of deposit. A deposit under this section is in addition to any deposit otherwise required or permitted by law or the commissioner. An amount deposited under this section is not available for the purpose of determining permanent capital or surplus, compulsory surplus or the financial condition, including insolvency, of the health maintenance organization insurer.
609.98(4)
(4)
Release of deposit. A deposit under this section may be released only with the approval of the commissioner under s.
601.13 (10) and only in any of the following circumstances:
609.98(4)(b)
(b) To the extent that the amount on deposit exceeds 1 percent of premiums written in this state by the health maintenance organization insurer in the preceding calendar year and the deposit is not necessary to pay an assessment under s.
646.51 (3) (am).
609.98 History
History: 1989 a. 23;
2003 a. 261.
