618.12(3)
(3)
Limits. The certificate of authority shall specify the terms of any deposit or bond required as a condition for authorization, any special limits placed on the insurer's business or methods of operation in this state, and any other restrictive terms imposed under sub.
(2).
618.12(4)
(4)
Alteration of certificate. An insurer may at any time apply to the commissioner for a new certificate of authority, removing, altering or adding limits on its business or methods of operation. The application shall be accompanied by so much of the information under s.
618.11 as the commissioner reasonably requires. The commissioner shall issue the new certificate as requested if he or she would do so if an initial application were being made.
618.12 History
History: 1971 c. 260;
1979 c. 102 s.
236 (5), (6).
618.14
618.14
Admission of nondomestic fraternals. 618.14(1)(1)
Application. A nondomestic fraternal may apply for authorization to transact business in this state, by filing with the commissioner:
618.14(1)(a)
(a) A certified copy of its articles and bylaws;
618.14(1)(b)
(b) A power of attorney to the commissioner to receive service of process and other papers;
618.14(1)(c)
(c) A certificate from the proper official in its home jurisdiction that the fraternal is authorized to transact business therein;
618.14(1)(e)
(e) A statement of its business in the form required by the commissioner, showing that the business of the fraternal substantially complies with all the provisions of law relating to like domestic fraternals; and
618.14(1)(f)
(f) Such other information as the commissioner may deem necessary.
618.14(2)
(2)
Examination. The commissioner shall examine the applicant fraternal.
618.14(3)
(3)
Certificate of authority. The commissioner shall grant a certificate of authority to do business in this state if the fraternal's condition and practices protect the interests of potential insureds, creditors and the public.
618.14 History
History: 1975 c. 373.
618.21
618.21
Corporation law requirements from chs. 180, 610, 611 and 623 applicable to nondomestic corporations. 618.21(1)(1)
Strict compliance. No nondomestic corporation may be authorized to do business in this state unless it complies strictly with the following requirements:
618.21(1)(c)
(c)
Requirements applicable to new corporations. For 5 years after the initial issuance of a certificate of authority in its domiciliary jurisdiction, the requirements of s.
611.29 (2); and if the corporation has transacted an insurance business for less than 5 years or has not paid in full all organizational and promotional expenses, it must still have initial expendable surplus considered by the commissioner to be adequate, subject to the limits of s.
611.19.
618.21(2)(a)(a)
General. No nondomestic insurance corporation may be authorized to do business in this state unless it everywhere complies substantially with ss.
611.12 (2) (d),
611.24 and
611.25 except that the approval requirement of s.
611.25 (1) does not apply, and s.
611.26.
618.21(2)(b)
(b)
Corporate reorganization or transformation. When any corporate reorganization, transformation or liquidation of a nondomestic insurer is proposed by it or approved by the domiciliary commissioner or by another official act, notice shall be given to the commissioner promptly.
618.21(3)
(3)
Orders imposing and eliminating restrictions. The commissioner may issue orders under s.
611.03 that are applicable to nondomestic corporations.
618.21(4)
(4)
Other requirements. After a hearing, the commissioner may by order apply any provision of ch.
611 to a nondomestic corporation if the commissioner finds that it is necessary for the protection of the interests of its insureds, creditors or the public in this state.
618.21(5)
(5)
Fraternals. This section does not apply to fraternals.
618.21 Annotation
Legislative Council Note to sub. (5), 1975: A special section applies to fraternals. See s. 618.26. In contrast, s. 618.22 does not apply to fraternals. [Bill 643-S]
618.22
618.22
Exclusive agency and management contracts of nondomestic corporations. 618.22(1)(1)
Filing of contract. No nondomestic insurer may be a party to any exclusive agency contract or management contract as defined in ss.
611.66 and
611.67 respectively, unless the contract is filed with the commissioner and not disapproved under this section within 30 days after filing, or such reasonable extended period as the commissioner may specify by notice given within the 30 days.
618.22(2)
(2)
Disapproval. The commissioner shall disapprove a contract under sub.
(1) or s.
611.67 if he or she finds that:
618.22(2)(a)
(a) It subjects the insurer to excessive charges; or
618.22(2)(b)
(b) The contract extends for an unreasonable period of time; or
618.22(2)(c)
(c) The contract does not contain fair and adequate standards of performance; or
618.22(2)(d)
(d) The persons empowered under the contract to manage the company are not sufficiently trustworthy, competent, experienced and free from conflict of interest to manage the company with due regard for the interests of its insureds, creditors or the public; or
618.22(2)(e)
(e) The contract contains provisions which impair the interests of its insureds, creditors or the public in this state.
618.22 Cross-reference
Cross-reference: See also s.
Ins 42.07, Wis. adm. code.
618.23
618.23
Requirements for nondomestic reciprocals. 618.23(1)(1)
Conditions of authorization. No nondomestic reciprocal may be authorized to do business in this state unless under the laws of its domicile or the provisions of its power of attorney or otherwise it can sue and be sued in its own name, and the assets resulting from the exchange of insurance contracts can be reached by its creditors; and either:
618.23(1)(a)
(a)
Nonassessable reciprocals. If it issues only nonassessable policies, it meets all the financial requirements for a mutual corporation in like circumstances including surplus, whether unallocated or in subscribers' accounts, that is at least as great as the level specified by s.
623.11; or
618.23(1)(b)
(b)
Assessable reciprocals. If it issues any assessable policies, it meets all the requirements for a mutual corporation issuing assessable policies in like circumstances and its subscribers are liable to the exchange to the limit of their assessability without regard to the validity or collectibility of any assessment levied against other subscribers.
618.23(2)
(2)
Substitute for the liability under sub. (1) (b). Where the liability of subscribers does not satisfy sub.
(1) (b), the commissioner may nevertheless authorize an assessable reciprocal if he or she is satisfied that practices are actually followed by the attorney in fact which ensure the capacity and willingness of all subscribers to pay assessments if called upon to do so, or which otherwise ensure the solidity of the operation.
618.23(3)
(3)
Corporation provisions applicable. To the extent consistent with the nature of a reciprocal, the provisions of ch.
611 that are made applicable to nondomestic mutual corporations by s.
618.21 apply to nondomestic reciprocals and the provisions and requirements applicable to principal officers of corporations apply to the attorneys in fact of reciprocal insurers.
618.23 History
History: 1971 c. 260;
1979 c. 102 s.
236 (5).
618.24
618.24
Requirements for incorporated alien insurers. 618.24(1)(1)
Conditions for authorization. No incorporated alien insurer may be authorized to do business in this state unless:
618.24(1)(a)
(a) It has operated for 5 years in its domicile or the commissioner finds other grounds for being confident that it will be solid during its formative period;
618.24(1)(b)
(b) It supplies and commits itself to maintain in the United States a deposit or bond in an amount the commissioner deems sufficient to protect the interests of insureds, creditors and the public in this state; and
618.24(1)(c)
(c) It files with the commissioner such agreement as the commissioner requires with respect to records, reports and submission to examinations, including an undertaking to keep its records, reports and other documents constantly available in full in the English language so far as they are relevant to its United States business, and an undertaking to keep records and make reports on United States business in a form satisfactory to the commissioner.
618.24(2)
(2)
Deposits. A deposit under sub.
(1) (b) may be made as specified in s.
601.13 or with another trustee in this or another state approved by the commissioner. The deposit shall be in trust for such persons as the commissioner deems appropriate to achieve the purposes of sub.
(1) (b). The trustees shall supply a certificate of the deposit in whatever form and at whatever intervals the commissioner reasonably requires.
618.24(3)
(3)
Bonds. A bond satisfies sub.
(1) (b) if it is issued by an insurer authorized to do a surety business in this state and is conditioned on nonperformance of any obligation to such persons as the commissioner considers appropriate to achieve the purposes of sub.
(1) (b). Each such bond shall cover any claims that arise out of occurrences prior to termination of the bond, and shall not be terminable on any ground without at least 30 days' notice to the commissioner. Each such bond shall be in such form and be renewed at such intervals as the commissioner reasonably requires.
618.24 History
History: 1971 c. 260;
1979 c. 102 s.
236 (6).
618.25
618.25
Requirements for unincorporated nondomestic insurers. No nondomestic individual underwriter or syndicate may be authorized to do business in this state unless:
618.25(1)
(1) It complies with such requirements stated in s.
618.24 as are applicable to an unincorporated insurer;
618.25(2)
(2) It files undertakings with the commissioner to comply with legal controls and institutional practices for securing the performance of obligations that are functionally equivalent to those imposed on nondomestic insurance corporations, even if in detail the controls and practices are dissimilar; and
618.25(3)
(3) The commissioner is satisfied that it keeps records and can supply information that will enable the commissioner to protect fully the interests of insureds, creditors and the public in this state.
618.25 History
History: 1971 c. 260;
1979 c. 102 s.
236 (21).
618.26
618.26
Requirements for nondomestic fraternals. 618.26(1)(1)
Strict compliance. No nondomestic fraternal may be authorized to do business in this state unless it complies strictly with all of the following requirements:
618.26(1)(c)
(c)
Requirements applicable to new fraternals. For 5 years after the initial issuance of a certificate of authority in its domiciliary jurisdiction, the requirements of s.
614.29 (2); and if the fraternal has transacted an insurance business for less than 5 years or has not paid in full all organizational and promotional expenses, it must still have initial expendable surplus considered by the commissioner to be adequate, subject to the limits of s.
614.19.
618.26(2)(a)(a)
General. No nondomestic fraternal may be authorized to do business in this state unless it everywhere complies substantially with ss.
611.24 to
611.26 as incorporated by s.
614.24, except that the approval requirement of s.
611.25 (2) does not apply.
618.26(2)(b)
(b)
Corporate reorganization or transformation. When any corporate reorganization, transformation or liquidation of a nondomestic fraternal, or any levy to cover a deficiency under a law comparable to s.
614.19 (3), is proposed by it or approved by the domiciliary commissioner or by another official act, notice shall be given to the commissioner promptly.
618.26(3)
(3)
Orders imposing and eliminating restrictions. The commissioner may issue orders under s.
614.03 that are applicable to nondomestic fraternals.
618.26(4)
(4)
Other requirements. After a hearing, the commissioner may by order apply any provision of ch.
614 to a nondomestic fraternal upon a finding that it is necessary for the protection of the interests of its members, creditors or the public in this state.
618.26 Annotation
Legislative Council Note, 1975: This section closely parallels s. 618.21. [Bill 643-S]
618.28
618.28
Exemptions from Wisconsin law. 618.28(1)(1)
Exemptions. Any nondomestic insurer authorized to do business in this state may apply for and the commissioner may make an order exempting it from any requirement otherwise applicable to it, if the commissioner finds after a hearing:
618.28(1)(a)
(a) That in the absence of the statutory requirement in this state the requirement would not be imposed on the insurer or on a similar Wisconsin insurer by the law of the insurer's domicile;
618.28(1)(b)
(b) That exemption from the requirement will not endanger the interests of insureds, creditors or the public in this state; and
618.28(1)(c)
(c) That the exemption will not give the insurer an unfair competitive advantage over domestic insurers.
618.28(2)
(2)
Notice and hearing. The hearing may not be held until at least 30 days after notice has been given to competing insurers authorized to do business in this state by publication in the administrative register or otherwise in a manner considered adequate by the commissioner. Any such insurer may appear in the hearing and state its position on sub.
(1) (c).
618.28 History
History: 1971 c. 260;
1991 a. 316.
618.31
618.31
Changes in business plan. 618.31(1)(1)
Notification. Within 5 years after the initial issuance of a certificate of authority to a nondomestic insurer by its domiciliary jurisdiction no substantial change may be made in the business plan and the insurer may not substantially deviate from it unless notice of the proposed action is filed with the commissioner 30 days in advance of the proposed effective date. The commissioner at least 5 days before the proposed effective date may request that the effective date be deferred for an additional period not exceeding 30 days.
618.31(2)(a)(a)
Applicability in this state. If the commissioner finds that effectiveness of the proposed change within this state would be contrary to the laws of this state or to the interests of insureds, creditors or the public in this state, the commissioner may prohibit the application of the change to this state.
618.31(2)(b)
(b)
Changes outside state. If the commissioner finds after a hearing that the application of the change outside of this state would endanger the interests of insureds, creditors or the public in this state, the commissioner may revoke the insurer's certificate of authority unless it agrees not to make such a change.
618.32
618.32
Transfer of business. 618.32(1)(1)
Report to commissioner. Any action by which a nondomestic insurer proposes to transfer to another person or to reinsure any part of its insurance business in this state, other than in the normal and usual course of business, 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 insurer before expiration of the initial 30-day period.
618.32(2)
(2)
Disapproval. The commissioner may, within the 30-day period or its extension, prohibit the proposed action if it would be contrary to the law or to the interests of insureds, creditors or the public in this state.
618.32 History
History: 1971 c. 260.
618.34
618.34
Assessment by nondomestic company. Every nondomestic mutual insurer authorized in this state shall, immediately after making an assessment upon any of its members in this state, notify the commissioner thereof with a statement of the condition of the insurer, setting forth the facts showing the necessity for the assessment. No such insurer may make or increase any assessment because of its inability to collect assessments from its members in other states in which its policies were written in violation of law.
618.34 History
History: 1971 c. 260.
618.36
618.36
Release from regulation.
