AB420,38,23 (4) (a) With respect to transferring a netting agreement or qualified financial contract of an insurer that is the subject of a proceeding under this chapter, the receiver of the insurer shall do one of the following:

AB420,39,2 1. Transfer to one party, other than an insurer subject to a proceeding under this chapter, all netting agreements and qualified financial contracts between the counterparty and the insurer that is subject to a proceeding under this chapter, including all of the following:

AB420,39,4 a. All rights and obligations of each party under each netting agreement and qualified financial contract.

AB420,39,7 b. All property, including any guarantee or other credit enhancement, securing any claims of each party under each netting agreement and qualified financial contract.

AB420,39,10 2. Transfer none of the netting agreements, qualified financial contracts, rights, obligations, or property referred to in subd. 1. with respect to the counterparty.

AB420,39,14 (b) If a receiver of an insurer transfers a netting agreement or qualified financial contract, the receiver shall use its best efforts to notify any person who is a party to the netting agreement or qualified financial contract of the transfer by noon, central time, on the business day following the transfer.

AB420,39,20 (5) Notwithstanding s. 645.52 or 645.54, a receiver may not avoid a transfer of money or other property arising under or in connection with a netting agreement or qualified financial contract, or any pledge, security, collateral, or guarantee agreement or any other similar security arrangement or credit support document relating to a netting agreement or qualified financial contract, that is made before the commencement of a formal delinquency proceeding under this chapter.

AB420,39,24 (6) (a) In exercising the rights of disaffirmance or repudiation with respect to a netting agreement or qualified financial contract between a counterparty and an insurer that is the subject of a proceeding under this chapter, the receiver of the insurer shall do one of the following:

AB420,40,2 1. Disaffirm or repudiate all netting agreements and qualified financial contracts between the counterparty and the insurer.

AB420,40,4 2. Disaffirm or repudiate none of the netting agreements or qualified financial contracts between the counterparty and the insurer.

AB420,40,15 (b) Notwithstanding any provision of this section to the contrary, any claim of a counterparty against the estate arising from the receiver's disaffirmance or repudiation of a netting agreement or qualified financial contract that has not been previously affirmed in the liquidation or immediately preceding conservation or rehabilitation case shall be determined and shall be allowed or disallowed as if the claim had arisen before the date on which the petition for liquidation was filed or, if a conservation or rehabilitation proceeding is converted to a liquidation proceeding, as if the claim had arisen before the date on which the petition for conservation or rehabilitation was filed. The amount of the claim is the actual direct compensatory damages determined as of the date of the disaffirmance or repudiation of the netting agreement or qualified financial contract.

AB420,40,23 (7) All rights of counterparties under this chapter that apply to netting agreements and qualified financial contracts entered into on behalf of a general account are available only to counterparties of netting agreements and qualified financial contracts entered into on behalf of that general account. All rights of counterparties under this chapter that apply to netting agreements and qualified financial contracts entered into on behalf of a separate account are available only to counterparties of netting agreements and qualified financial contracts entered into on behalf of that separate account.

AB420,40,25 (8) (a) This section does not apply to persons who are affiliates of an insurer subject to a proceeding under this chapter.

AB420,41,2 (b) This section does not apply to qualified financial contracts entered into with an insurer authorized to write financial guaranty insurance.

AB420,68 Section 68. 646.51 (3) (am) (intro.) and 2. of the statutes are consolidated, renumbered 646.51 (3) (am) and amended to read:

AB420,41,9 646.51 (3) (am) General. Except as provided in pars. (ar), (b) and (c), assessments shall be calculated as follows: 2. For assessments authorized by the board on or after April 30, 2004, as a percentage of premium written in this state by each insurer in the classes protected by the accounts for the year preceding the year in which the assessment is authorized by the board.

AB420,69 Section 69. 646.51 (3) (am) 1. of the statutes is repealed.

AB420,70 Section 70. 646.51 (3) (ar) of the statutes is created to read:

AB420,41,14 646.51 (3) (ar) Disability. Except as provided in par. (c), with respect to disability insurance policies, including policies issued by health maintenance organization insurers, assessments shall be calculated as follows:

AB420,41,18 1. For assessments authorized by the board before the effective date of this subdivision .... [LRB inserts date], as a percentage of average annual premium received in this state by each insurer in the classes protected by the accounts for the 3 most recent years preceding the year of entry of the order of liquidation.

AB420,41,22 2. For assessments authorized by the board on or after the effective date of this subdivision .... [LRB inserts date], as a percentage of premium written in this state by each insurer in the classes protected by the accounts for the year preceding the year in which the assessment is authorized by the board.

AB420,71 Section 71. 646.51 (3) (b) of the statutes is amended to read:

AB420,42,4 646.51 (3) (b) Life and health annuities. Except as provided in par. (c), with respect to annuity contracts or life or disability insurance policies, including policies issued by health maintenance organizations, assessments shall be calculated as a percentage of average annual premium received in this state by each insurer in the classes protected by the accounts for the 3 most recent years preceding the year of the entry of the order of liquidation.

AB420,72 Section 72. 646.51 (4) (a) of the statutes is amended to read:

AB420,42,10 646.51 (4) (a) Subject to pars. (b) and (d), the total of all assessments for an amount authorized by the board under this section with respect to an insurer may not, in one calendar year, exceed 2 percent of the insurer's assessable premiums under sub. (3) (am), (ar), or (b) on the types of policies and contracts that are covered by the account.

AB420,73 Section 73. 646.51 (9) (a) of the statutes is amended to read:

AB420,42,16 646.51 (9) (a) Except as provided in par. (b), if an insurer's license or certificate of authority to do business in this state terminates or , expires, or is surrendered, the insurer's obligation to pay assessments under this section ceases beginning on the day after the insurer's license or certificate of authority terminates or, expires, or is surrendered.

AB420,74 Section 74. 646.51 (9) (b) of the statutes is amended to read:

AB420,42,20 646.51 (9) (b) An insurer whose license or certificate of authority to do business in this state terminates or, expires , or is surrendered remains liable after the termination or, expiration, or surrender to pay all of the following: