Ins 3.67   Benefit appeals under certain policies.

Ins 3.75   Continuation of discontinued employer provided health group policy coverage for employees and their dependents.

Ch. Ins 3 Note Note: Corrections made under s. 13.93 (2m) (b) 7., Stats., Register, August, 1997, No. 500.

Ins 3.01 Ins 3.01 Accumulation benefit riders attached to health and accident policies. Except where such rider is used only on a policy replacing the company’s own policy, and so recites, no rider providing for accumulations of benefits will be approved for use upon any policy of health and accident insurance, whether it is proposed to issue such rider with or without an additional premium. Such rider operates as an aid to twisting the policies of another company in such manner as to make its use a direct encouragement of this practice.

Ins 3.02 Ins 3.02 Automobile fleets, vehicles not included in. Individually owned motor vehicles cannot be included or covered by fleet rates. The determining factor for inclusion under fleet coverage must be ownership and not management or use.

Ins 3.04 Ins 3.04 Dividends not deducted from premiums in computing loss reserves. Premiums returned to policyholders as dividends may not be deducted from the earned premiums in computing loss reserves under s. 623.04, Stats.

Ins 3.04 History History: 1-2-56; emerg. am. eff. 6-22-76; am. Register, September, 1976, No. 249, eff. 10-1-76.

Ins 3.08 Ins 3.08 Municipal bond insurance.

Ins 3.08(1) (1) Purpose. This section implements and interprets ss. 601.42, 611.19 (1), 618.21, 623.03, 623.04, 627.05, 628.34 (2), 632.14, and 632.17, Stats., for the purpose of establishing minimum requirements for the transaction of a type of surety insurance known as municipal bond insurance.

Ins 3.08(2) (2) Scope. This section shall apply to the underwriting, marketing, rating, accounting and reserving activities of insurers which write municipal bond insurance.

Ins 3.08(3) (3) Definitions.

Ins 3.08(3)(a) (a) “Annual statement” means the fire and casualty annual statement form specified in s. Ins 7.02, Forms 22-010 and 22-011.

Ins 3.08(3)(b) (b) “Contingency reserve” means a reserve established for the protection of policyholders covered by policies insuring municipal bonds against the effect of excessive losses occurring during adverse economic cycles.

Ins 3.08(3)(c) (c) “Cumulative net liability” means one-third of one percent of the insured unpaid principal and insured unpaid interest covered by in-force policies of municipal bond insurance.

Ins 3.08(3)(d) (d) “Municipal bonds” means securities which are issued by or on behalf of or are paid or guaranteed by:

Ins 3.08(3)(d)1. 1. Any state, territory or possession of the United States of America;

Ins 3.08(3)(d)2. 2. Any political subdivision of any such state, territory or possession; or

Ins 3.08(3)(d)3. 3. Any agency, authority or corporate or other instrumentality of any one or more of the foregoing, or which are guaranteed by any of the foregoing.

Ins 3.08(3)(e) (e) “Municipal bond insurance” means a type of surety insurance authorized by s. Ins 6.75 (2) (g) which is limited to the guaranteeing of the performance and obligations of municipal bonds.

Ins 3.08(3)(f) (f) “Municipal bond insurer” means an insurer which issues municipal bond insurance.

Ins 3.08(3)(g) (g) “Total net liability” means the average annual amount due, net of reinsurance, for principal and interest on the insured amount of any one issue of municipal bonds.

Ins 3.08(3)(h) (h) “Person” means any individual, corporation for profit or not for profit, association, partnership or any other legal entity.

Ins 3.08(3)(i) (i) “Policyholders’ surplus” means an insurer’s net worth, the difference between its assets and liabilities, as reported in its annual statement.

Ins 3.08(4) (4) Minimum capital or permanent surplus. The minimum capital or permanent surplus of a municipal bond insurer shall be $2 million for an insurer first authorized to do business in Wisconsin on or before January 1, 1984, or the amount required by statute or administrative order after that date for other municipal bond insurers.

Ins 3.08(5) (5) Limitations and restrictions.

Ins 3.08(5)(a) (a) Policies of municipal bond insurance shall be issued only to provide coverage on bonds of the type defined in sub. (3) (d).

Ins 3.08(5)(b) (b) A municipal bond insurer may not have total net liability in respect to any one issue of municipal bonds in excess of an amount representing 10% of its policyholders’ surplus.

Ins 3.08(5)(c) (c) A municipal bond insurer may not have outstanding cumulative net liability, under in-force policies of municipal bond insurance, in an amount which exceeds the sum of: