CHAPTER 618
NONDOMESTIC INSURERS
SUBCHAPTER I
GENERAL PROVISIONS
SUBCHAPTER II
AUTHORIZATION OF NONDOMESTIC INSURERS
618.12 Certificate of authority.
618.14 Admission of nondomestic fraternals.
618.21 Corporation law requirements from chs.
180,
610,
611 and
623 applicable to nondomestic corporations.
618.22 Exclusive agency and management contracts of nondomestic corporations.
618.23 Requirements for nondomestic reciprocals.
618.24 Requirements for incorporated alien insurers.
618.25 Requirements for unincorporated nondomestic insurers.
618.26 Requirements for nondomestic fraternals.
618.28 Exemptions from Wisconsin law.
618.31 Changes in business plan.
618.32 Transfer of business.
618.34 Assessment by nondomestic company.
618.36 Release from regulation.
618.37 Revocation of certificate of authority.
618.39 Assisting unauthorized insurers.
SUBCHAPTER III
PERMISSIBLE BUSINESS BY
UNAUTHORIZED INSURERS
618.41 Surplus lines insurance.
618.415 Group liability insurance issued by an unauthorized insurer.
618.416 Qualification for placement of surplus lines insurance with an unauthorized insurer.
618.42 Direct procurement of insurance.
618.43 Taxation of insurance written by unauthorized insurers.
618.44 Effect of illegal contracts.
618.45 Servicing of contracts made out of state.
618.47 Defense of action by unauthorized person.
618.49 Investigation, disclosure and taxation of insurance contracts.
618.50 Reporting of illegal insurance.
618.61 Reciprocal enforcement of foreign decrees.
Ch. 618 Cross-reference
Cross-reference: See definitions in ss.
600.03,
610.01 and
628.02.
Ch. 618 Cross-reference
Cross-reference: See also ch.
Ins 41, Wis. adm. code.
GENERAL PROVISIONS
618.01
618.01
Purposes. The purposes of this chapter are:
618.01(1)
(1) To protect insureds, creditors and the public in this state by providing adequate standards and an orderly procedure for the authorization of nondomestic insurers;
618.01(2)
(2) To prevent evasion by unauthorized insurers of the regulatory and tax laws of this state and to protect this state and its residents against loss from such action;
618.01(3)
(3) To subject unauthorized insurers and other persons doing an insurance business in this state to the jurisdiction of the commissioner and the courts of this state;
618.01(4)
(4) To protect authorized insurers from unfair competition by unauthorized insurers; and
618.01(5)
(5) To provide an orderly method, under reasonable and practical safeguards, for procuring insurance from unauthorized insurers.
618.01 History
History: 1971 c. 260.
618.02
618.02
Definitions. For the purposes of this chapter, unless the context indicates otherwise:
618.02(1)
(1) “Directly procured insurance" means insurance procured under s.
618.42.
618.02(2)
(2) “Doing an insurance business" includes:
618.02(2)(a)
(a) Soliciting, making, or proposing to make an insurance contract;
618.02(2)(b)
(b) Taking or receiving an application for insurance;
618.02(2)(c)
(c) Collecting or receiving, in full or in part, an insurance premium;
618.02(2)(d)
(d) Issuing or delivering an insurance policy except as a messenger not employed by the insurer or by an insurance agent or broker;
618.02(2)(e)
(e) Inspecting risks, setting rates, disseminating information or advising on risk management in connection with the solicitation, negotiating, procuring or effectuation of insurance coverage;
618.02(2)(f)
(f) Investigating, settling, adjusting or litigating claims;
618.02(2)(g)
(g) In any way representing or assisting any person to do an insurance business or to procure insurance; and
618.02(2)(h)
(h) Any other act generally regarded as doing an insurance business.
618.02(3)
(3) “Doing an insurance business" does not include:
618.02(3)(b)
(b) Acting as a full-time salaried employee of an insured in the capacity of an insurance buyer or manager.
618.02 History
History: 1971 c. 260;
1981 c. 314.
AUTHORIZATION OF NONDOMESTIC INSURERS
618.11
618.11
Application. Any person, including the United States branch of an alien insurer, authorized to transact the business of insurance as an insurer in another jurisdiction may apply for a certificate of authority to do an insurance business in this state, using the forms prescribed by the commissioner. The applicant shall include the information and documents the commissioner requests, including the following unless the commissioner excludes any of them:
618.11(1)
(1) A copy of the insurer's articles and bylaws;
618.11(2)
(2) Financial statements for the most recent completed fiscal year, with an explanation of the bases of all valuations and computations, in such detail as the commissioner reasonably requires;
618.11(3)
(3) A summary, as detailed as the commissioner reasonably requires, of the insurer's financial history for the preceding 10 years;
618.11(4)
(4) The names of its directors and principal officers and all their addresses and occupations for the preceding 10 years;
618.11(5)
(5) In the case of an alien insurer, the name of its United States manager and for the preceding 10 years all the manager's addresses and occupations; and if the manager is corporate the names, addresses and occupations of the manager's directors and principal officers and detailed financial statements of the manager;
618.11(6)(a)
(a) All jurisdictions in which it has done or been authorized to do an insurance business during the preceding 10 years;
618.11(6)(b)
(b) All jurisdictions to which it has applied for authorization to do an insurance business during the preceding 10 years, and the dates and results of such applications;
618.11(6)(c)
(c) All jurisdictions from which it has withdrawn during the preceding 10 years, and the reasons for its withdrawals;
618.11(6)(d)
(d) All administrative or criminal actions, orders or proceedings to which it or any of its directors or principal officers have been subjected on account of an alleged violation of any law governing insurance operations in any jurisdiction during the preceding 10 years, or not involving insurance operations if it is a felony;
618.11(7)
(7) A description of its present business operations, including the coverages written and the territories in which it does business, and including a statement that it is in compliance with s.
620.05, with such documentary evidence of compliance as the commissioner requires;
618.11(8)
(8) A list of any significant statements, reports or other documents that have been prepared during the preceding 10 years for any insurance regulatory authority or for general distribution among creditors, shareholders, members, subscribers or policyholders;
618.11(9)
(9) If it has actually transacted an insurance business for less than 5 years, a detailed history of the past and projection of the anticipated operating results at the end of each of the first 5 years of operation, based where known on actual data and otherwise on reasonable assumptions of loss experience, premium and other income, operating expenses and acquisition costs;
618.11(10)
(10) A statement showing to what extent organizational and promotional expenses have been paid, and to what extent organizational procedures are incomplete;
618.11(11)
(11) A certificate from the domiciliary regulatory authority and the state of entry into the United States, if any, that so far as known the applicant is sound and that there are no legitimate objections to its proposed operations in this state;
