reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.25 - Voluntary dissolution of town mutuals.

612.25
Voluntary dissolution of town mutuals.
A town mutual may be dissolved in the following way:
(1)
Plan for dissolution. The board shall adopt a plan for dissolution stating:
(a)
The reasons for the proposed action;
(b)
The proposed terms, conditions and procedures for and estimated expenses of implementing the dissolution; and
(c)
The financial condition of the town mutual, in such detail as the commissioner reasonably requires.
(2)
Submission to commissioner. The town mutual shall file with the commissioner the plan and any explanatory statement proposed to be issued to the members. The commissioner may require that any additional information reasonably necessary to enable the members to make a decision be added to the proposed explanatory statement.
(3)
Approval by members and commissioner. The plan shall thereupon be submitted to the members. If the members adopt the plan, the corporation shall file with the commissioner for approval a copy of the resolution of the members, stating the number of members entitled to vote, the number of members voting and the number of votes cast in favor of the plan, stating separately the mail votes and the votes cast in person. The commissioner shall approve the plan unless he or she finds, after a hearing, that the town mutual is insolvent or may become insolvent in the process of dissolution unless it makes an assessment. If an assessment would be required, the commissioner shall institute proceedings under s. 645.41 (10).
(4)
Implementation of plan. When the plan has been completely implemented, that fact shall be reported to the commissioner and the commissioner shall certify that the town mutual no longer has a legal existence.
(5)
Conversion to ch. 645 liquidation. If it appears at any time that the approved dissolution plan cannot be implemented according to its terms, or that there are grounds for involuntary liquidation, the commissioner may petition under s. 645.41 for liquidation of the town mutual.
History:  1973 c. 22; 1979 c. 102 ss. 120, 236 (6).
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.32 - Territory.

612.32
Territory.
No town mutual may insure any risks located outside the territory authorized in its articles, except:
(1)
Real property outside territory. Town mutuals may insure real property and contents in villages and cities partially located in the specified territory, real property and contents in an immediately adjoining county owned by a member who has real property and contents insured by the town mutual within the specified territory, and real property and contents used exclusively by the member and his or her family for recreational purposes.
(2)
Temporary removal.
(a)
Farm property. A town mutual may provide coverage for livestock while temporarily located outside the town mutual's territory, for farm products while temporarily located for a period not exceeding 2 years outside the town mutual's territory, and for farm machinery and farm vehicles while temporarily located for a period not exceeding one year outside its territory, subject to limitations in the policy or in the articles or bylaws with respect to the distance from the territory to which the property may be removed without suspension of the coverage.
(b)
Household property. A town mutual may provide coverage for household goods and effects and other personal property while temporarily removed from the location stated in the policy, whether within or outside the town mutual's territory.
(3)
Nonproperty coverage. A town mutual may write nonproperty insurance under s. 612.31 (3) without regard to its territorial limits provided the coverage is included in a policy providing principally coverage under s. 612.31 (1) on property within its territory.
History:  1973 c. 22; 1979 c. 102 s. 236 (13); 1979 c. 110 s. 60 (11); 1979 c. 355; 1981 c. 218; 1985 a. 189; 2015 a. 90.
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.34 - Rates.

612.34
Rates.
(1)
Regulation of assessments. Town mutuals need not file information under ch. 625 about special assessments unless ordered to do so by rule or order of the commissioner.
(2)
Classifications. No classification plan for the purpose of determining premiums or assessment shares may be used unless it has been approved by the commissioner. The commissioner shall approve the plan unless he or she finds that it would be contrary to the law, including the standards of s. 625.11, or contrary to the interests of insureds or of the public.
(3)
Mandatory advance premiums. Notwithstanding members' liability for subsequent assessments under s. 612.54, town mutuals shall charge advance premiums expected to be adequate for any insurance for which they must obtain reinsurance under s. 612.33 (2) (b).
History:  1973 c. 22; 1979 c. 102 s. 236 (5).
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.35 - Borrowing and repayment.

612.35
Borrowing and repayment.
A town mutual may borrow money to pay losses or expenses, but before obtaining a loan which would bring its indebtedness, including debit balances from reinsurance arrangements under s. 612.33 (1) above 50 percent of its assets including assessments levied and collectible which are not overdue, it shall report the amount and purpose of the loan and all outstanding loans and debit balances to the commissioner. The commissioner may thereupon order the town mutual to levy an assessment to repay its indebtedness, establish a surplus, or both, within a reasonable time not less than 60 days after notice.
History:  1973 c. 22.
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.36 - Investments.

612.36
Investments.
(1)
General. Except as provided in sub. (2), town mutuals are subject to ch. 620 but shall be restricted as provided in s. 620.03 (1) unless individually exempted by the commissioner under s. 620.03 (2). In applying the restrictions of ch. 620 all assets of town mutuals shall be treated as if they were required to satisfy the compulsory surplus requirement, except to the extent that the commissioner by rule determines otherwise.
(2)
Real estate. Section 620.23 (1) (c) does not apply to town mutuals. Except under s. 620.21 (2), no town mutual may own real estate that in the aggregate exceeds, in value measured at cost, one mill on the dollar of the insurance in force.
History:  1973 c. 22; 1977 c. 339.
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.51 - Contract forms.

612.51
Contract forms.
(2)
Rules. The commissioner may by rule prescribe forms to be used for policies, applications or for particular clauses.
(3)
Articles and bylaws. The articles and bylaws shall be attached to or clearly incorporated by reference in every policy issued by a town mutual. They may be incorporated by reference only if each new member is supplied a copy of them and each policy specifies how additional copies may be obtained.
(4)
Limited coverage. Recovery as to any or all items of personal property insured under a policy may be limited to a percentage of the value at the time of the loss, by a clearly expressed statement to that effect in that policy.
History:  1973 c. 22; 1975 c. 375; 1979 c. 102 s. 236 (5); 2007 a. 168.
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.52 - Undertaking to pay premiums and assessments.

612.52
Undertaking to pay premiums and assessments.
An applicant for insurance shall sign an undertaking agreeing to pay the advance premiums for any insurance on the applicant's behalf and any assessment which may be levied in accordance with the terms of the policy, the articles, the bylaws, the statutes, and the reasonable expenses of collecting the assessment and any reasonable penalties for nonpayment. The undertaking may provide that for such collection the applicant shall waive any exemptions otherwise applicable to the property covered by the policy.
History:  1973 c. 22; 1979 c. 102; 1981 c. 218.
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.61 - Licensing of agents.

612.61
Licensing of agents.
Persons soliciting insurance for town mutuals shall comply with s. 628.05.
History:  1973 c. 22; 1975 c. 371.
Legislative Council Note, 1975: Present s. 612.61 is replaced by s. 628.05, which is part of this act. The terms remain the same. It is preserved only as a cross reference to s. 628.05. [Bill 16-S]
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.70 - Waiver of notice and informal action.

612.70
Waiver of notice and informal action.
Sections 181.0704, 181.0706, 181.0821 and 181.0823 apply to town mutuals. Section 181.0821 applies to a committee of the board except that references to “board" shall be read as “committee".
History:  1973 c. 22; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 612 - Town mutuals. › 612.81 - Register of deeds.

612.81
Register of deeds.
No town mutual need file any corporate documents with any register of deeds for corporation law or regulatory purposes. All such documents held by registers of deeds on May 24, 1973, may be disposed of under s. 59.43 (12) (b).
History:  1973 c. 22; 1995 a. 201.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.01 - Definitions.

613.01
Definitions.
In this chapter, unless the context requires otherwise:
(1)
Articles of incorporation. “Articles of incorporation" has the meaning designated under s. 181.0103 (1).
(2)
Board of directors. “Board of directors" has the meaning designated for “board" under s. 181.0103 (2).
(3)
Bylaws. “Bylaws" has the meaning designated under s. 181.0103 (3).
(4)
Director. “Director" includes “trustee".
(4m)
Insurer. In any provision of the statutes made applicable to service insurance corporations by this chapter, “insurer" includes service insurance corporations, and the technical terms used in those statutes shall be applicable to service insurance corporations despite the customary use of other parallel terms by service insurance corporations.
(5)
Nonprofit corporation. “Nonprofit corporation" has the meaning designated under s. 181.0103 (17).
(6)
Nonstock corporation. “Nonstock corporation" has the meaning designated under s. 181.0103 (18).
(7)
Officer. “Officer" does not include “director".
(8)
Department of financial institutions. In any provision of ch. 180 or 181 made applicable to service insurance corporations in this chapter, “department" means commissioner of insurance.
History:  1975 c. 223; 1979 c. 102; 1983 a. 189 ss. 295, 296, 329 (22); 1995 a. 27; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.02 - Scope and purposes.

613.02
Scope and purposes.
(1)
Scope. This chapter applies only to corporations incorporated under the laws of this state. Corporations not incorporated under the laws of this state may not do business in this state under this chapter.
(2)
Purposes. The purposes of this chapter are:
(a)
To create an effective and flexible legal framework within which insured service benefits may be provided with adequate protection to consumers;
(b)
To encourage innovation in insurance organization and marketing and the development of more economical and effective ways of providing services or combinations of indemnity and services;
(c)
To meet the special needs of service insurance corporations consistent so far as possible with the general framework of the corporation law of insurance; and
(d)
To ease the burden of payment for health care and other essential services by providing a method for creating alternative vehicles for providing them.
History:  1975 c. 223; 1975 c. 224 s. 148m; 1975 c. 375, 422; 1977 c. 339; 1979 c. 102; 2021 a. 238 s. 44.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.03 - Applicability of other laws to service insurance corporations.

613.03
Applicability of other laws to service insurance corporations.
(1)
Chapter 181 generally inapplicable to service insurance corporations. Chapter 181 does not apply to service insurance corporations except as specifically made applicable by this chapter.
(2)
Insurance corporation law. Whenever in this chapter a section, subsection or paragraph of ch. 611 is made applicable to service insurance corporations the application shall be of those portions of the section, subsection or paragraph of ch. 611 that apply to mutual corporations.
(3)
Applicability of insurance laws. Except as otherwise specifically provided, service insurance corporations organized or operating under this chapter are subject to ss. 610.01, 610.11, 610.21, 610.23 and 610.24 and chs. 600, 601, 609, 617, 620, 623, 625, 627, 628, 631, 632, 635, 644 and 645 and to no other insurance laws.
History:  1975 c. 223; 1979 c. 102 ss. 125, 126; 1979 c. 313; 1981 c. 38 s. 26; 1983 a. 215 s. 17; 1989 a. 23; 1991 a. 250; 1997 a. 27, 227; 2005 a. 74; 2013 a. 20.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.04 - Orders imposing and eliminating restrictions.

613.04
Orders imposing and eliminating restrictions.
(1)
Orders imposing restrictions. The commissioner may subject an individual corporation not otherwise subject thereto to some or all of the restrictions of ss. 613.28, 613.33 (1) (a) and (b) and 611.54 (1) (b) as incorporated by s. 613.54, if the commissioner finds that its financial condition, management or other circumstance requires such additional regulation for the protection of the interests of insureds or the public.
(2)
Orders eliminating restrictions. The commissioner may free a new corporation from any of the restrictions generally applicable only to new corporations under ss. 613.28, 613.33 (1) (a) and (b) and 611.54 (1) (b) as incorporated by s. 613.54, if the commissioner is satisfied that its financial condition, management or other circumstance gives assurance that the interests of insureds and the public will not be endangered thereby.
History:  1975 c. 223, 421.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.07 - General corporate powers and procedures.

613.07
General corporate powers and procedures.
(1)
Powers. Service insurance corporations have the powers specified under s. 181.0302.
(2)
Effect of unauthorized corporate acts. Section 181.0304 applies to service insurance corporations.
(4)
Waiver of notice and informal action by members or directors. Sections 181.0704 and 181.0706 apply to members of service insurance corporations and ss. 181.0821 and 181.0823 apply to the board of directors and committees of the board of directors of service insurance corporations.
History:  1975 c. 223; 1979 c. 110; 1987 a. 13; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.10 - Reserved and registered names.

613.10
Reserved and registered names.
A service insurance corporation may reserve or register a corporate name as provided in ss. 181.0402 and 181.0403 (2), (3) and (3m).
History:  1975 c. 223; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.12 - Articles and bylaws.

613.12
Articles and bylaws.
(1)
Contents of articles. The articles of a service insurance corporation shall conform to s. 181.0202, except that:
(a)
The name of the corporation shall include descriptive terms to indicate the general nature of the services or care to be provided, or a trade name that is generally understood as indicating such service or care, and shall comply with s. 181.0401 (2) to (4);
(am)
The articles shall include a statement that the corporation is a service insurance corporation organized under this chapter;
(b)
The purposes of the corporation shall be limited to those permitted in s. 610.21;
(c)
The services to be provided or for which indemnity is to be paid shall be generally described and shall be of the same kind as the services ordinarily provided by any members of the corporation in their profession or business, or of the persons entitled to designate members, and services ancillary thereto;
(d)
The articles shall state whether members or other providers of services are subject to assessments for the purpose of paying operating costs or financial deficits, the general conditions and procedures for levying such assessments and any limitations on the assessments that may be levied;
(e)
The articles shall state, for corporations having members, how persons may become members and that only members may vote; and
(f)
The articles of a corporation not having members shall state how the directors of the corporation shall be selected.
(2)
Bylaws. The bylaws of a service insurance corporation shall comply with this chapter, and with ss. 181.0206, 181.0207 and 181.1020 to 181.1022. A copy of any amendments to the bylaws shall be filed with the commissioner within 60 days after adoption.
(3)
Principal officers. The articles or bylaws shall specifically designate 3 or more offices, the holders of which shall be the principal officers of the corporation. The principal offices shall be held by at least 3 separate natural persons.
History:  1975 c. 223; 1997 a. 79; 2015 a. 197 s. 51.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.19 - Financial and contractual resources.

613.19
Financial and contractual resources.
(1)
Minimum permanent surplus. The commissioner may by rule establish the minimum permanent surplus for a corporation organized under this chapter. In the absence of such a rule, the minimum permanent surplus shall be $2,000,000 or such greater amount as the commissioner specifies by order.
(2)
Initial expendable surplus. A corporation organized under this chapter shall have an initial expendable surplus, after payment of all organizational expenses, of at least 50 percent of the minimum permanent surplus specified under sub. (1), or such other percentage as the commissioner specifies by order.
(3)
Providers' contracts. A service insurance corporation may make contracts with its members and other persons for the provision of services to policyholders in order to ensure performance of the insurance contracts to be issued. The selection of members and other providers with whom such contracts are made and the terms of the contracts, together with the surplus provided under subs. (1), (2) and (5), shall reflect the benefits and other terms provided in the insurance contracts and the number and distribution of existing and expected policyholders in such a way that it is reasonably to be expected that services will be provided as promised.
(4)
Assessments against policyholders. There may not be any assessments against policyholders.
(5)
Reduction of minimum surplus. The commissioner may by order reduce the minimum amounts of surplus required under subs. (1) and (2) if in the commissioner's opinion the extent and nature of providers' contracts under sub. (3), financial guarantees and other support by financially sound private or public corporations, a pressing social need in a particular community for the formation of a service insurance corporation, or other special circumstances, justify the proposed reduction in the required surplus. A person who will directly compete with the proposed insurer is aggrieved within the meaning of s. 601.62 (3) (a).
(5m)
Capital requirements rule. Notwithstanding subs. (1), (2) and (5), the commissioner shall promulgate a rule that establishes for a corporation that is organized under this chapter and that is not a health maintenance organization insurer the same compulsory and security surplus requirements that apply to a corporation that is organized under ch. 611, subject to ch. 646 and authorized to write the same line of business as a corporation that is organized under this chapter and that is not a health maintenance organization insurer.
(6)
Health maintenance organization insurer. This section does not apply to a health maintenance organization insurer that is subject to s. 609.96.
History:  1975 c. 223, 421; 1979 c. 261; 1985 a. 335; 1989 a. 23; 1995 a. 236.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.20 - Alteration of certificate of authority.

613.20
Alteration of certificate of authority.
(1)
Upon application. A service insurance corporation may at any time apply to the commissioner for a new or amended certificate of authority, removing, altering or adding limits on its business or methods of operation. The application shall contain or be accompanied by so much of the information in s. 613.13 (1) as the commissioner requires. The commissioner shall issue the new certificate as requested if the commissioner finds that the:
(a)
Corporation's surplus and providers' contracts are adequate to support the proposed operations under the new certificate; and
(b)
Proposed business would not be contrary to the law or to the interests of insureds or the public.
(2)
By commissioner. If the commissioner issues a summary order under s. 645.21 against a corporation, the commissioner may also revoke the corporation's certificate and issue a new one with such limits as deemed necessary.
History:  1975 c. 223, 421.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.29 - Amendment of articles.

613.29
Amendment of articles.
(1)
Right to amend articles. A service insurance corporation may amend its articles under ss. 181.1001 to 181.1007 in any desired respect including substantial changes of its original purposes not inconsistent with this chapter. No amendment may be made contrary to s. 613.12.
(2)
Filing. For 5 years after the initial issuance of a certificate of authority, proposed amendments of the articles which are not changes in the business plan shall be filed with the commissioner at least 30 days before the amendment is submitted to the members for approval, or if such approval is not required, at least 30 days before the effective date. No amendment may become effective until the articles of amendment have been filed with the commissioner.
(3)
Effect of amendment. Section 181.1008 applies to service insurance corporations.
History:  1975 c. 223; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.31 - Securities regulation.

613.31
Securities regulation.
(1)
Registration. No securities issued by a service insurance corporation may be sold by or for the corporation unless they are registered or exempt from registration under ch. 551.
(2)
Approval by commissioner. Securities of a service insurance corporation may not be registered under ch. 551 without prior approval of the commissioner of insurance.
History:  1975 c. 223.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.33 - Authorized securities.

613.33
Authorized securities.
(1)
Service insurance corporation bonds. The articles of a service insurance corporation may authorize service insurance corporation bonds of one or more classes and shall specify the amount of each class of bonds the corporation is authorized to issue, their designations, preferences, limitations, rates of interest and relative rights, subject to the following provisions:
(a)
During the first year after the initial issuance of a certificate of authority, the corporation may issue only a single class of bonds with identical rights.
(b)
After the first year but within 5 years after the initial issuance of a certificate of authority, additional classes of bonds may be authorized after approval of the commissioner, who shall approve on a finding that policyholders and prior bondholders will not be prejudiced.
(c)
The rate of interest shall be fair and reasonable.
(d)
The bonds shall bear a maturity date not later than 10 years from the date of issuance, when principal and accrued interest shall be due and payable, subject to sub. (4).
(2)
Contribution notes. Any service insurance corporation may issue contribution notes if the commissioner approves. The commissioner may approve only on a finding that:
(a)
The notes will not be issued in denominations of less than $500, and no single issue will be sold to more than 15 persons;
(b)
No discount, commission or other fee will be paid or allowed;
(c)
The notes will not be the subject of a public offering;
(d)
Their terms are not prejudicial to policyholders, holders of service insurance corporation bonds or of prior contribution notes; and
(e)
The corporation's articles and bylaws do not forbid their issuance.
(3)
Prohibited transactions. No service insurance corporation may:
(a)
If it has any outstanding obligations on service insurance corporation bonds or contribution notes, borrow on contribution notes from, or sell bonds to, any other insurer without approval of the commissioner; or
(b)
Make any loan to another insurer except a fully secured loan at usual market rates of interest.
(4)
Repayment. Payment of the principal or interest on service insurance corporation bonds or contribution notes may be made in whole or in part only after approval by the commissioner. Approval shall be given if all financial requirements of the issuer to do the insurance business it is then doing will continue to be satisfied after payment and if the interests of its insureds and the public are not thereby endangered. In the event of liquidation under ch. 645, unpaid amounts of principal and interest on contribution notes shall be subordinated to the payment of principal and interest on any service insurance corporation bonds issued by the corporation at any time.
(5)
Other obligations. Nothing in this section prevents a service insurance corporation from borrowing money on notes which are its general obligations, nor from pledging any part of its disposable assets therefor.
History:  1975 c. 223, 421; 1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.40 - Members and meetings.

613.40
Members and meetings.
In a service insurance corporation that has members:
(1)
Meetings of members. Sections 181.0160, 181.0701, 181.0702 and 181.0705 apply to service insurance corporations.
(2)
Voting and quorum. Sections 181.0721, 181.0723 and 181.0724 apply to service insurance corporations and s. 181.0722 applies to service insurance corporations except as modified by ss. 613.72 (4) and 613.75 (2).
(3)
Delegates. Section 181.0640 applies to service insurance corporations.
History:  1975 c. 223; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.41 - Communications to members or policyholders and attendance at meetings.

613.41
Communications to members or policyholders and attendance at meetings.
(1)
Copies of communications. The commissioner may by rule prescribe that copies of specified classes of communications circulated generally by a corporation to members or policyholders shall be communicated to the commissioner at the same time.
(2)
Attendance at meetings. The commissioner may attend any members' or policyholders' meeting.
History:  1975 c. 223, 421.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.51 - Board of directors.

613.51
Board of directors.
(1)
General. The affairs of a corporation shall be managed by a board of directors. Directors need not be residents of this state or members of the corporation unless the articles of incorporation or bylaws so require. The articles of incorporation or bylaws may prescribe other qualifications for directors.
(2)
Number, selection and classification of directors. Section 611.51 (2) and the first sentence of s. 611.51 (5) apply to service insurance corporations. Sections 181.0803 to 181.0811 apply to service insurance corporations except as modified by ss. 613.53 and 613.54.
(3)
Inside directors. Employees and representatives of a service insurance corporation may not constitute a majority of its board.
(3m)
Subsidiaries and closely held corporations. Subsection (3) and s. 611.51 (2) (a) do not apply to an insurance subsidiary authorized under s. 613.26 nor to a nonstock insurance corporation with a single voting member or all of whose voting members are either members of or are individually represented on the board.
(4)
Unlawful delegation. The board shall manage the business and affairs of the corporation and may not delegate its power or responsibility to do so, except to the extent authorized by ss. 181.0841 and 613.56.
(5)
Quorum and voting. Section 181.0824 applies to service insurance corporations, except as modified by s. 613.60.
(6)
Books and records. Sections 181.1601 to 181.1605 apply to service insurance corporations.
(7)
Place and notice of directors' meetings. Sections 181.0820, 181.0822 and 181.0823 apply to service insurance corporations.
History:  1975 c. 223; 1997 a. 79; 2021 a. 258.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.52 - Officers.

613.52
Officers.
(1)
General. Sections 181.0840 and 181.0841 apply to service insurance corporations, as modified by s. 613.12 (3).
(2)
Removal. Sections 181.0843 and 181.0844 apply to service insurance corporations.
History:  1975 c. 223; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.53 - Policyholder or public members of board of directors.

613.53
Policyholder or public members of board of directors.
The articles may provide that any number of the directors shall be chosen from among the policyholders, the general public or both, under a plan designed to assure independent directors truly representing the interests of policyholders or the public interest. The persons to be named as directors under this section shall be persons whose experience and existing relationships qualify them to serve responsibly and impartially as independent policyholder or public directors.
History:  1975 c. 223.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.58 - Policyholders' committee.

613.58
Policyholders' committee.
A service insurance corporation's articles or bylaws may provide for a policyholders' committee, to be selected in a manner that will make its membership representative of the interests of policyholders. The policyholders' committee shall at the corporation's expense prepare an annual report to be filed with the commissioner. The corporation shall inform all policyholders of the availability of the report in a manner approved by the commissioner and shall send copies of the report to policyholders upon their request. A summary of the report prepared or approved by the committee and not exceeding 2,000 words shall be included with any annual report issued by the corporation to members or policyholders.
History:  1975 c. 223.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.62 - Directors' and officers' liability and indemnification.

613.62
Directors' and officers' liability and indemnification.
(1)
Liability. Sections 181.0833 and 181.0850 to 181.0855 apply to service insurance corporations.
(2)
Indemnification. Sections 181.0871 to 181.0881 apply to service insurance corporations but no indemnification may be made until at least 30 days after notice to the commissioner, containing full details about the proposed indemnification.
(3)
Insurance. Section 181.0883 applies to service insurance corporations.
History:  1975 c. 223, 421; 1987 a. 13; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.63 - Executive compensation.

613.63
Executive compensation.
(1)
Establishment of compensation. Section 181.0302 (11) to (14) applies to service insurance corporations, except as modified by ss. 613.60 and sub. (2).
(2)
Restrictions. Subchapter XIII of ch. 181 and s. 611.63 (3) to (6) apply to service insurance corporations.
History:  1975 c. 223; 1979 c. 102 s. 237; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.66 - Exclusive agency contracts.

613.66
Exclusive agency contracts.
(1)
General. Except under sub. (2), no service insurance corporation may enter into any contract whereby any person is granted the exclusive right or privilege of soliciting, producing or receiving a fee or commission on all or substantially all of the insurance business of the corporation in this state.
(2)
Subsidiaries. Subsection (1) does not apply to contracts in which a corporation is the exclusive agent of its insurance subsidiary authorized under s. 611.26 (1) as applied to service insurance corporations by s. 613.26, or in which the subsidiary is the exclusive agent of the corporation.
History:  1975 c. 223.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.69 - Distributions.

613.69
Distributions.
(1)
General. Subchapter XIII of ch. 181 applies to service insurance corporations.
(2)
Notice to commissioner. No payments, other than the contractual compensation for services rendered to policyholders or payments to policyholders, officers and employees in the ordinary course of business, may be made to the members until 30 days after the proposed action has been reported to the commissioner.
History:  1975 c. 223; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.72 - Merger of service insurance corporations.

613.72
Merger of service insurance corporations.
(1)
Authorization. Any 2 or more domestic service insurance corporations may merge, if they provide services of the same or a related nature, or if the services complement one another or there are other reasons that make it reasonable for a single corporation to render both. A written plan of merger shall be prepared, setting forth all the terms of the proposed merger and its effect on policyholders and members of both corporations. The plan shall also contain the articles and bylaws of the proposed new corporation.
(2)
Commissioner's approval required. No proposed merger plan under this section may be submitted to the members until the commissioner approves it.
(3)
Grounds for disapproval. The commissioner shall approve the plan unless the commissioner finds, after a hearing, that it is contrary to the law or to the interests of insureds or of the public of this state.
(4)
Members' approval required. The plan must be approved separately by two-thirds of the votes cast by the members of each corporation included in the plan.
(5)
Application of ch. 181. Except as otherwise provided in this section, ss. 181.1101 to 181.1108 apply to service insurance corporations.
History:  1975 c. 223, 421; 1979 c. 102; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.74 - Voluntary dissolution of solvent service insurance corporations.

613.74
Voluntary dissolution of solvent service insurance corporations.
(1)
General. Sections 181.1401 to 181.1407 apply to service insurance corporations, except as provided in subs. (2) to (4).
(2)
Plan of dissolution. At least 60 days prior to the submission to a vote of the members of any proposed voluntary dissolution of a service insurance corporation under s. 181.1401, the plan shall be filed with the commissioner. The commissioner may require the submission of such additional information as will establish the financial condition of the corporation or other facts relevant to the proposed dissolution. If the members adopt the resolution to dissolve, the commissioner shall, within 30 days after the adoption of the resolution, begin to examine the corporation. The commissioner shall approve the dissolution unless the commissioner finds, after a hearing, that it is insolvent or may become insolvent in the process of dissolution. Upon approval, the corporation may dissolve under ss. 181.1401 to 181.1407. Upon disapproval, the commissioner shall petition the court for liquidation or for rehabilitation under ch. 645.
(3)
Conversion to involuntary liquidation. The corporation may at any time during the liquidation under ss. 181.1401 to 181.1407 apply to the commissioner to have the liquidation continued under the commissioner's supervision; thereupon the commissioner shall apply to the court for liquidation under s. 645.41 (10).
(4)
Revocation of voluntary dissolution. If the corporation revokes the voluntary dissolution proceedings under s. 181.1404, a copy of the revocation of voluntary dissolution proceedings shall be filed with the commissioner.
History:  1975 c. 223, 421; 1995 a. 417; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.75 - Conversion of a service insurance corporation into a stock or mutual insurance corporation.

613.75
Conversion of a service insurance corporation into a stock or mutual insurance corporation.
(1)
Authorization. Any service insurance corporation may be converted into a stock insurance corporation under ch. 611 upon complying with sub. (2) and as much of s. 611.76 as is applicable, or into a mutual under ch. 611 upon complying with sub. (2) and s. 611.75.
(2)
Approval by persons entitled to vote. The commissioner shall not issue an organization permit under s. 611.13 (3) or a certificate of authority under s. 611.22 (3) unless the conversion has been approved by a mail vote of at least two-thirds of those voting, including an affirmative vote of at least half of the members, or by a vote of at least two-thirds of the members present or represented by proxy at a special meeting called for that purpose.
History:  1975 c. 223; 1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.78 - Transfer of business or assets.

613.78
Transfer of business or assets.
(1)
General. Sections 181.1201 and 181.1202 apply to service insurance corporations except as modified by subs. (2) and (3).
(2)
Report to commissioner. Any action by which a service insurance corporation proposes to transfer to another person or to reinsure any part of its insurance business, other than in the normal and usual course of business, or to sell, lease, exchange, mortgage, pledge or otherwise dispose of or encumber more than 25 percent of its assets, 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 corporation before expiration of the initial 30-day period.
(3)
Disapproval. The commissioner may, within the 30-day period or its extension under sub. (2), prohibit the proposed action if it is contrary to law, the interests of insureds or the public or if it will make possible the circumvention of any of the requirements of ss. 613.72 to 613.75.
History:  1975 c. 223; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.80 - Hospital service insurance corporations.

613.80
Hospital service insurance corporations.
(1)
Statement of purpose. This subsection is a guide to the interpretation and application of sub. (2). Payment for adequate health care services is a problem of great social importance, with many ramifications. New and better methods of payment for and delivery of health care services are needed. It is hereby stated to be the public policy of this state to encourage the formation of nonprofit hospital service insurance corporations under this chapter, on an economically sound basis, in the hope that they may ease the burden of payment for hospital services and health care for large numbers of the population, without any burden on the public treasury and free from the profit motive. If such corporations can contribute to the solution of such serious social and economic problems, they merit the support of the state. It is the policy of this state that such corporations should develop without changing the status of voluntary hospitals and that, by enabling many citizens to procure adequate hospital services for themselves, they should leave the hospitals more able to provide subsidized services to those unable to pay.
(2)
Authorization. Nonprofit hospital service insurance corporations may be organized under this chapter to establish, maintain and operate service plans to implement sub. (1).
(3)
Continuation. Any corporation existing under s. 182.032, 1973 stats., prior to May 5, 1976 is deemed to have been organized under this section.
History:  1975 c. 223.
2023 Wisconsin Statutes & Annotations › Chapter 613 - Service insurance corporations. › 613.90 - Vicarious liability.

613.90
Vicarious liability.
No member of or other provider for a service insurance corporation is liable, solely by virtue of a relationship with the corporation or of the providers' contract, for any act, omission or default of the corporation or of any other member of or provider for the corporation.
History:  1975 c. 223, 421.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.01 - Definitions.

614.01
Definitions.
(1)
In this chapter:
(a)
A “fraternal", also called a “fraternal benefit society" or “mutual benefit society" is a corporation organized or operating under this chapter that:
1.
Has no capital stock;
2.
Exists solely for:
a.
The benefit of its members and their beneficiaries; and
b.
Any lawful social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious purposes for the benefit of its members or the public, carried on through voluntary activity of its members in their local lodges or through institutional programs of the fraternal or its local lodges;
3.
Has a lodge system;
4.
Has a representative form of government; and
5.
Provides insurance benefits authorized under this chapter.
(b)
The “laws" of a fraternal include its articles of incorporation and bylaws, however designated.
(c)
A “lodge system" exists only if all of the following conditions are met:
1.
There is a supreme governing body.
2.
Subordinate to the supreme governing body, there are local lodges, whatever the local lodges are called, into which natural persons are admitted as members in accordance with the laws of the fraternal.
3.
The local lodges are required by the laws of the fraternal to hold regular meetings at least once every 3 months.
4.
The local lodges engage regularly in programs involving member participation to implement the purposes of par. (a) 2. b.
(d)
A “representative form of government" exists if and only if the fraternal complies with s. 614.42.
(5)
In any section of the statutes made applicable to fraternals by this chapter, the technical terms used in those statutes are applicable to fraternals despite the customary use of other parallel terms by fraternals.
(6)
The definitions in ss. 181.0103 (3), (17) and (18), 600.03 and 610.01 (1), (2) and (4) apply to fraternals.
History:  1975 c. 373; 1979 c. 102; 1983 a. 189 ss. 297, 329 (22), (25); 1997 a. 79; 2001 a. 103; 2003 a. 60.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.02 - Scope and purposes.

614.02
Scope and purposes.
(1)
Scope.
(a)
Domestic fraternals. This chapter applies to all fraternals organized under the laws of this state.
(b)
Nondomestic fraternals. Except as expressly provided in this chapter and in s. 618.26, this chapter does not apply to nondomestic fraternals.
(2)
Purposes. The purposes of this chapter are:
(a)
To provide a complete, self-contained procedure for the formation of fraternals.
(b)
To assure the solidity of fraternals by providing an organizational framework to facilitate sound management, sound operation and sound regulation.
(c)
To strengthen internal fraternal democracy through as much member participation as is practicable.
(d)
To encourage the fulfillment of the special purposes of fraternals.
History:  1975 c. 373.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.03 - Orders imposing and relaxing restrictions.

614.03
Orders imposing and relaxing restrictions.
(1)
Imposing restrictions. The commissioner may subject any fraternal not otherwise subject thereto to some or all of the restrictions of s. 611.28 (1) as incorporated by s. 614.28, s. 611.33 (2) (a) 1. and 2. as incorporated by s. 614.33, and s. 611.54 (1) (b) as incorporated by s. 614.54, and s. 614.29 (2).
(2)
Orders eliminating restrictions. The commissioner may free a new fraternal from any or all of the restrictions generally applicable only to new fraternals under the provisions enumerated in sub. (1) if satisfied that its financial condition, management or other circumstances give assurance that the interests of insureds and the public will not be endangered thereby.
History:  1975 c. 373, 421.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.05 - Applicability of other insurance laws to fraternals.

614.05
Applicability of other insurance laws to fraternals.
(1)
Chapters 611 and 619. No section of ch. 611 or 619 applies to fraternals unless it is specifically made applicable by this chapter.
(2)
Applicable portions. Each other section of chs. 600 to 646 that applies to mutuals subject to ch. 611 also applies to domestic and nondomestic fraternals unless:
(a)
This chapter or the particular section provides otherwise; or
(b)
The particular section is inconsistent with a provision applying explicitly to fraternals, in this chapter or elsewhere.
History:  1975 c. 373; 1979 c. 89; 1995 a. 27; 1997 a. 27.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.07 - General corporate powers and procedures.

614.07
General corporate powers and procedures.
(1)
Powers. Section 181.0302 applies to fraternals.
(2)
Effect of unauthorized corporate acts. Section 181.0304 (1) and (2) applies to fraternals.
(4)
Waiver of notice and informal action. Sections 181.0704, 181.0706, 181.0821 and 181.0823 apply to fraternals.
History:  1975 c. 373; 1979 c. 110; 1987 a. 13; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.09 - Reservation of corporate name.

614.09
Reservation of corporate name.
Sections 181.0402 and 181.0403 (2), (3) and (3m) apply to fraternals, except that “department" shall be read “commissioner".
History:  1975 c. 373; 1995 a. 27; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.10 - Members and applicants in fraternals.

614.10
Members and applicants in fraternals.
(1)
Membership. A fraternal may admit any natural person to membership under such conditions and for such insurance and other benefits as its laws prescribe, subject to this chapter and other applicable laws. Members not having insurance cease to be members if the fraternal is converted to a mutual.
(2)
Applicants authorized. Subject to s. 631.07, a fraternal may do any of the following:
(a)
In general. Provide insurance benefits to its members and, on the application of members, to others.
(b)
Children. Insure the lives or disability of children younger than the minimum age for membership in the fraternal but otherwise eligible for membership, on the application of some adult person.
(c)
Employees.
1.
In this paragraph, “ employee" includes a former employee who is classified as a retired employee under a retirement plan or other written policy of a fraternal or of a subsidiary or other affiliate of a fraternal.
2.
Notwithstanding s. 614.01 (1) (a) 2., provide insurance benefits to its employees and to employees of the fraternal's subsidiaries or other affiliates.
3.
Notwithstanding s. 614.01 (1) (a) 2., on the application of an employee specified in subd. 2., provide insurance benefits to the employee's spouse or domestic partner under ch. 770 or a child of the employee who receives financial services or support from the employee.
(3)
Children's lodges. A fraternal may organize lodges for children covered by insurance but not old enough for membership. Membership in local lodges is not required for such children, and they have no voting rights.
(4)
Benefits pending membership. A fraternal may extend temporary or conditional insurance coverage to a nonmember who has applied for membership in the fraternal.
History:  1975 c. 373; 1989 a. 336; 1997 a. 177; 2009 a. 28.