Wis. Stat. § 646.51 — WI Code / Chapter 646 / Section 646.51
Assessments.
Status: in_force

(1c) Definitions. In this section:

(a) “Authorize” means, with respect to assessments, to approve, by the adoption of a resolution by the board, that an assessment from insurers in a specified amount be called immediately or in the future. An assessment is authorized when the resolution is adopted by the board.

(b) “Call” means, with respect to assessments, to require payment, by the mailing of a notice to insurers by the fund, of an authorized assessment within the time set forth in the notice. An assessment is called when notice is mailed to insurers by the fund.

(c) “Premiums” means gross premiums and other considerations received for direct insurance and annuities, including considerations for a plan established under ss. 185.981 to 185.985 , less return premiums and other considerations, dividends, and experience credits paid or credited to policyholders on such business. The term “premiums” does not include premiums or other considerations received for policies or contracts, or for portions of policies or contracts, for which coverage is not provided under this chapter, except that the amount of assessable premiums or other considerations shall not be reduced on account of limitations with respect to a single risk, loss, or life under s. 646.31 (4) or on account of interest limitations under s. 646.35 (6) (c) .

(1m) Duty to assess. To meet the board’s obligations under this chapter, after a liquidation order has been issued, the board shall estimate separately for each of the accounts of s. 646.11 (2) and separately for life insurance policies and for annuity contracts in the life insurance and annuities account, the amounts necessary to make the payments provided by this chapter. The board shall authorize assessments separately for each account and separately for life insurance policies and for annuity contracts in the life insurance and annuities account.

(3) Calculation.

(am) General. Except as provided in pars. (ar) , (b) , (bm) , and (c) , the board shall calculate the assessments as a percentage of premiums written in this state by each insurer in the classes protected by the accounts under s. 646.11 (2) for the year immediately preceding the year in which the board authorizes the assessment.

(ar) Disability. Except as provided in par. (c) , with respect to the disability insurance account under s. 646.11 (2) and the health maintenance organization insurers account under s. 646.11 (2) , the board shall calculate the assessments as a percentage of premiums written in this state by each insurer in the classes protected by the accounts for the year immediately preceding the year in which the board authorizes the assessment. If the assessment data for the year immediately preceding the year in which the board authorizes the assessment is not available when the assessment is called, the board may use the assessment data for the most recent year for which data is available.

(b) Life and annuities. Except as provided in par. (c) , with respect to the life insurance and annuities account under s. 646.11 (2) , the board shall calculate the assessments separately for life insurance policies and for annuity contracts as a percentage of premiums received in this state by each insurer in the classes protected by the account for the year immediately preceding the year in which the board authorizes the assessment. If the assessment data for the year immediately preceding the year in which the board authorizes the assessment is not available when the assessment is called, the board may use the assessment data for the most recent year for which data is available.

(bm) Long-term care.

1. Except as provided in par. (c) , with respect to the long-term care insurance account under s. 646.11 (2) , the board shall calculate the assessments against life, annuity, and disability premiums written in this state, including disability premiums written by health maintenance organization insurers, as set forth in subds. 2. and 3.

2.

a. The board shall calculate the percentage of life insurance, annuity contract, and disability insurance premiums written by each life insurer and by each disability insurer, including health maintenance organization insurers, to which this chapter applies. The calculation shall be based on each insurer’s total life insurance, annuity contract, and disability insurance premiums written in this state for the year preceding the year in which the assessment is authorized by the board, provided that the board’s calculations under subd. 2. b. , c. , and d. excludes long-term care and disability income insurance premiums.

b. If the percentage of life insurance and annuity contract premiums written in this state by an insurer exceeds 50 percent of the insurer’s total life insurance, annuity contract, and disability insurance premiums written in this state for the year preceding the year in which the assessment is authorized by the board, the insurer shall be classified as a life insurer.

c. If the percentage of disability insurance premiums, including premiums on products issued by health maintenance organization insurers, written in this state by an insurer exceeds 50 percent of the insurer’s total life insurance, annuity contract, and disability insurance premiums written in this state for the year preceding the year in which the assessment is authorized by the board, the insurer shall be classified as a disability insurer.

d. If the percentage of life insurance and annuity contract premiums and the percentage of disability insurance premiums written in this state by an insurer each equal 50 percent of the insurer’s total life insurance, annuity contract, and disability insurance premiums written in this state for the year preceding the year in which the assessment is authorized by the board, the insurer will be assigned the classification with the lower assessment base as determined under subd. 3.

e. If an insurer issues only disability income products or only long-term care insurance products in this state for the year preceding the year in which the assessment is authorized by the board, the insurer shall be classified as a disability insurer.

3.

a. The board shall allocate 50 percent of the total assessment authorized by the board for the long-term care insurance account pursuant to sub. (1m) to life insurers under subd. 2. and the board shall allocate 50 percent of the total assessment authorized by the board for the long-term care insurance account pursuant to sub. (1m) to disability insurers under subd. 2.

b. The board shall calculate the allocations for each insurer under subd. 3. a. as a percentage of the total premiums written in this state by insurers in the classes described under subd. 2. for the year preceding the year in which the assessment is authorized by the board. If the assessment data for the year immediately preceding the year in which the board authorizes the assessment is not available when the assessment is called, the board may use the assessment data for the most recent year for which data is available.

4. Upon an insurer’s payment of an assessment imposed under this paragraph, the fund shall require the insurer to elect to claim one of the following:

a. Income and franchise tax credits under s. 71.07 (12) , 71.28 (12) , or 71.47 (12) .

b. Insurer license fee credits under s. 76.634 .

5. If an insurer elects to claim income and franchise tax credits described in subd. 4. a. , no later than 60 days after an assessment imposed under this paragraph is collected from the insurer, the fund shall issue to the insurer a certification of the amount of the assessment that the insurer may claim as eligible for the credit under s. 71.07 (12) , 71.28 (12) , or 71.47 (12) .

6. The fund shall certify the amount of the assessment imposed on an insurer under this paragraph that the insurer may claim as eligible for the credit under s. 71.07 (12) , 71.28 (12) , 71.47 (12) , or 76.634 . No later than 60 days after the collection of an assessment imposed on insurers under this paragraph, the fund shall provide to the office and the department of revenue a certification of all of the following:

a. The amount of the assessment that each insurer may claim as eligible for the credit under s. 71.07 (12) , 71.28 (12) , 71.47 (12) , or 76.634 .

b. The election made by each insurer under subd. 4.

(c) Administrative assessments. The board may authorize assessments on a prorated or nonprorated basis to meet administrative costs and other expenses whether or not related to the liquidation or rehabilitation of a particular insurer. Nonprorated assessments may not exceed $500 per insurer in any year.

(4) Limits.

(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) , (b) , or (bm) on the types of policies and contracts that are covered by the account.

(b) If the maximum assessment under par. (a) , together with the other assets of the fund in an account, does not provide in one year in the account an amount that is sufficient for the fund to meet its obligations, the board shall assess additional amounts in each succeeding year until the amounts available enable the fund to meet its obligations.

(c) Assessments to meet the obligations of the fund with respect to an insurer in liquidation may not be authorized or called unless the board makes a finding that it is necessary for implementing the purposes of this chapter. Recognizing that exact determinations may not always be possible, the board shall endeavor to classify and calculate assessments with a reasonable degree of accuracy. No authorized assessment may be called if the assets held in the appropriate account of the fund are sufficient to cover all estimated payments for liquidations in progress.

(d) If 2 or more assessments are authorized in one calendar year with respect to insurers placed in liquidation in different calendar years, the average annual premiums for purposes of the limitation in par. (a) shall be equal and limited to the higher of the 3-year annual premium average for the applicable account.

(5) Collection. After the rate of assessment has been fixed, the fund shall send to each insurer a statement of the amount it is to pay. The fund shall designate whether the assessments shall be made payable in one sum or in installments.

(6) Appeal and review. Within 30 days after the fund sends the statement under sub. (5) , an insurer, after paying the assessment under protest, may appeal the assessment to the board or a committee thereof. The decision of the board or committee on the appeal is subject to judicial review in the circuit court for Dane County. A petition for judicial review shall be filed within 60 days of the board’s or committee’s decision.

(7) Recoupment or tax credit.

(a) An insurer’s premium rates are not excessive because they contain an amount reasonably calculated to recoup assessments called under this chapter.

(b) Except as provided in par. (bm) , if the premium rates on a class of business are fixed, so that it is not possible for an insurer to recoup its assessments by increasing premium rates on the class of business, the insurer may offset 20 percent of the amount of the Wisconsin portion of the assessment against the tax imposed under s. 71.43 , 76.63 , 76.65 , 76.66 , or 76.67 in each of the 5 calendar years following the year in which the assessment was paid.

(bm)

1. An insurer that pays an assessment under sub. (3) (bm) may claim a tax credit under s. 71.07 (12) , 71.28 (12) , 71.47 (12) , or 76.634 .

2. An insurer that claims a tax credit under s. 71.07 (12) , 71.28 (12) , or 71.47 (12) for a taxable year may not claim a credit under s. 76.634 for the same taxable year.

(c) If an insurer ceases doing business in this state, all assessments not yet offset may be offset against its tax liabilities to this state for the year it ceases doing business. If the offset exceeds the tax liabilities, no refund will be made and there will be no carry-forward of the deficit to later years.

(d) Any amount available for credit against future tax liabilities under this subsection may be regarded as an asset of the insurer under rules promulgated by the commissioner.

(8) Abatement and deferral. The board may abate or defer the assessment of an insurer in whole or part if payment of the assessment would endanger the ability of the insurer to fulfill its contractual obligations. The amount by which an assessment is abated or deferred may be assessed under this section against other insurers. When the conditions that prompted the board to defer assessment of an insurer no longer exist, the insurer shall pay all assessments that were deferred in accordance with a repayment plan approved by the board.

(9) Obligation to contribute ceases.

(a) Except as provided in par. (b) , if an insurer’s license or certificate of authority to do business in this state terminates, 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, expires, or is surrendered.

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

1. Assessments authorized or called before the insurer’s license or certificate of authority terminated, expired, or was surrendered.

2. Assessments authorized or called after the insurer’s license or certificate of authority terminated, expired, or was surrendered that relate to a liquidation order entered before the insurer’s license or certificate of authority terminated, expired, or was surrendered.

(10) Assessment of converting insurers. When an insurer converts to a different type of entity or license and the effect of the conversion is to subject the insurer to the liabilities of a different account or accounts of the fund, the converting insurer’s obligation to pay assessments is as follows:

(a) Assessments authorized prior to or during the year of conversion. For assessments authorized by the board prior to or during the year in which the insurer’s conversion to a different type of entity or license is effective, the insurer is liable for assessments to cover the obligations of the account or accounts to which it was subject prior to conversion.

(b) Assessments authorized after the year of conversion. For assessments authorized by the board after the year in which the insurer’s conversion to a different type of entity or license is effective, the insurer is liable for assessments to cover the obligations of the account or accounts to which it is subject after conversion.

History: 1979 c. 109 ; 1983 a. 120 ; 1985 a. 216 ; 1989 a. 23 , 31 ; 1995 a. 396 ; 1999 a. 30 ; 2003 a. 261 ; 2007 a. 170 ; 2009 a. 342 ; 2015 a. 90 ; 2021 a. 114 ; 2023 a. 212 ; 2025 a. 227 ; s. 13.92 (1) (bm) 2.; s. 35.17 correction in (7) (bm) 1.