reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 618 - Nondomestic insurers. › 618.47 - Defense of action by unauthorized person.

618.47
Defense of action by unauthorized person.
(1)
Conditions for filing. No pleading, notice, order or process in any court action or in any administrative proceeding before the commissioner instituted against an unauthorized person under ss. 601.72 or 601.73 may be filed by or on behalf of the unauthorized person unless the person either:
(a)
Deposits with the clerk of the court in which the action or proceeding is pending, or with the commissioner in administrative proceedings before the commissioner, bond with sureties in an amount fixed by the court or the commissioner, sufficient to secure the payment of any probable final judgment or order. The court, or the commissioner in administrative proceedings before the commissioner, may make an order dispensing with a deposit or bond where the person makes a satisfactory showing that in a state of the United States he or she maintains funds or securities, in trust or otherwise, sufficient and available to satisfy any probable final judgment or order; or
(b)
Procures proper authorization to do an insurance business in this state.
(2)
Postponement. The court in any such action or proceeding, or the commissioner in any administrative proceeding before the commissioner, may order any postponement necessary to afford the unauthorized person reasonable opportunity to comply with sub. (1).
(3)
Exception. Subsection (1) does not prevent an unauthorized person from filing a motion to quash a writ or to set aside service on the ground that he or she has not done an insurance business in this state.
History:  1971 c. 260; 1979 c. 102 ss. 149, 236 (5), (8).
2023 Wisconsin Statutes & Annotations › Chapter 618 - Nondomestic insurers. › 618.48 - Attorney fees.

618.48
Attorney fees.
In an action against an unauthorized person upon a contract of insurance issued in violation of this chapter, if the unauthorized person fails to make payment in accordance with the contract for 30 days after the payment is due and demand is made, and it appears to the court that the refusal was without reasonable cause, the court may allow the plaintiff a reasonable attorney fee and include the fee in any judgment that may be rendered in the action. Failure of the unauthorized person to defend any such action is prima facie evidence that the failure to pay was without reasonable cause. If the unauthorized person knew or should have known that the contract was in violation of this chapter, the court may also award punitive damages.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 618 - Nondomestic insurers. › 618.49 - Investigation, disclosure and taxation of insurance contracts.

618.49
Investigation, disclosure and taxation of insurance contracts.
(1)
Report on insurance. Whenever the commissioner has reason to believe that insurance has been effectuated by or for any person in this state with an unauthorized insurer, the commissioner may in writing order the person to produce for examination all insurance contracts and other documents evidencing insurance contracts and other documents evidencing insurance with both authorized and unauthorized insurers and to disclose to the commissioner the amount of insurance, name and address of each insurer, gross amount of premium and the name and address of any person who has assisted in the effectuation of the insurance.
(2)
Uninsured property. The commissioner may order any owner of property situated in this state, other than property owned by a unit of government that maintains a public fire department and furnishes full fire protection for the property, to furnish in addition to the information furnished under sub. (1) information about amounts paid to or credited to any insurance fund or other reserve against loss or damage by fire. If the owner of the property has not insured it, the owner shall pay under s. 601.93 (2) an amount equal to 2 percent of the annual premium that would have been charged for insuring such property by authorized insurers using the rates promulgated by the rate service organization of which the state insurance fund is a member or subscriber under s. 604.04 (5), or which is designated for that purpose by the commissioner.
History:  1971 c. 260; 1973 c. 336; 1975 c. 372 s. 41; 1975 c. 421; 1979 c. 34 s. 2102 (26) (a).
2023 Wisconsin Statutes & Annotations › Chapter 618 - Nondomestic insurers. › 618.50 - Reporting of illegal insurance.

618.50
Reporting of illegal insurance.
(1)
Adjusters' duty to report. Every person investigating or adjusting any loss or claim on a subject of insurance in this state shall promptly report to the commissioner every insurance policy or contract connected with his or her investigation or settlement, of which he or she knows, which has been entered into illegally by any insurer not authorized to transact business in this state.
(3)
Exceptions. This section does not apply to transactions in this state involving a policy lawfully solicited, written, and delivered outside of this state covering only subjects of insurance not resident, located or expressly to be performed in this state at the time of issuance.
History:  1971 c. 260; 1979 c. 102; 1981 c. 38.
2023 Wisconsin Statutes & Annotations › Chapter 619 - Risk-sharing plans. › 619.02 - State contribution for federally reinsured losses.

619.02
State contribution for federally reinsured losses.
(1)
Assessment of insurers. The commissioner is authorized to assess each insurance company authorized to do business in this state an aggregate amount sufficient to provide a fund to reimburse the U.S. secretary of housing and urban development in the manner set forth in sec. 1223 (a) (1) of the national housing act as amended by sec. 1103 of the urban property protection and reinsurance act of 1968, P.L. 90-448, 82 Stat. 476. The assessment shall be on those lines reinsured during the current year in this state by the U.S. secretary of housing and urban development pursuant to such act. The assessment shall be in the proportion that the premiums earned during the preceding calendar year by each such company in this state bear to the aggregate premiums earned on those lines in this state by all insurers. The fund may be provided in whole or in part from appropriations by the legislature.
(2)
Recoupment. Rates used by an insurer shall not be deemed excessive because they contain an amount reasonably calculated to recoup assessments made under this section.
2023 Wisconsin Statutes & Annotations › Chapter 619 - Risk-sharing plans. › 619.03 - Voluntary risk-sharing plans.

619.03
Voluntary risk-sharing plans.
Insurers doing business within this state are authorized to prepare voluntary plans providing any specified kind, line or class of insurance coverage or subdivision or combination thereof for all or any part of this state in which such insurance is not readily available in the voluntary market and in which the public interest requires the availability of such coverage. Voluntary risk-sharing plans shall be submitted to the commissioner and if approved may be put into operation.
History:  1979 c. 102; 1991 a. 315.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.01 - Purpose and scope.

620.01
Purpose and scope.
(1)
Investment objectives. The purpose of this chapter is to protect and to further the interests of insureds, creditors and the public, by providing, with minimum interference with management initiative and judgment, standards for the development and administration of programs for the investment of the assets of insurers, which standards seek an optimal balance of the following objectives:
(a)
Safety of principal, and to the extent consistent therewith, maximum yield and growth;
(b)
Stability of value, except where higher risk and possible fluctuations of value are compensated by a commensurate increase in yield and growth possibilities, and either special reserves or surplus is available in sufficient amount to cover reasonably foreseeable fluctuations in value;
(c)
Sufficient liquidity to avoid the necessity in reasonably expected circumstances for selling assets at undue sacrifice;
(d)
Reasonable diversification with respect to geographical area, industry, maturity, types of investment, individual investments and other relevant variables; and
(e)
Reasonable relationship between liabilities and assets as to term and nature.
(2)
Scope. Except as otherwise provided, this chapter and the rules promulgated to interpret and implement it, apply to all insurers authorized to do business in this state.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.02 - Segregated account investments.

620.02
Segregated account investments.
(1)
General. Each segregated or separate account established under s. 611.24 or 611.25 shall be evaluated separately to determine compliance with this chapter.
(2)
Variable benefit separate accounts.
(a)
General. The amounts allocated to each account created under s. 611.25 and accumulations thereon may be invested and reinvested without regard to any requirements or limitations prescribed by this chapter.
(b)
Guaranteed benefits. To the extent that the corporation's reserve liability, with regard to benefits guaranteed as to dollar amount and duration and funds guaranteed as to principal amount or stated rate of interest, is maintained in any separate account, a portion of the assets of the account at least equal to the reserve liability shall be invested in accordance with this chapter, or in accordance with such requirements as the commissioner prescribes by rule.
(3)
Valuation of segregated account assets. Assets allocated to a segregated account shall be valued at their market value on the date of valuation, or if there is no readily available market, then in accordance with the applicable contract; but a portion of the assets of the account at least equal to the corporation's reserve liability with regard to the guaranteed benefits and funds referred to in sub. (2), if any, shall be reported separately and valued in accordance with the rules otherwise applicable to the corporation's assets or in accordance with rules promulgated under sub. (2). No securities valuation reserve or other reserve for fluctuation in the value of securities need be maintained for assets that do not have to comply with this chapter.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.03 - Special investment restrictions.

620.03
Special investment restrictions.
(1)
Special restrictions for new insurers. For the first 5 years after obtaining a certificate of authority in this state, an insurer shall be subject to the following restrictions:
(a)
Procedural requirements. The commissioner may by rule prescribe for all or for certain classes of such insurers special procedural requirements including special reports, prior approval or subsequent disapproval of investments.
(b)
Substantive restrictions. The commissioner may by rule prescribe for all, or separately for different classes of, such insurers substantive restrictions on investments, including:
1.
Specification of classes of assets that may not be counted toward satisfaction of the compulsory surplus requirement or the security surplus standard even though they may be counted for unrestricted corporations;
2.
Specification of maximum amounts of assets that may be invested in any single investment, or any issue, class or group of classes of investments, expressed as percentages of total assets, capital, surplus, legal reserves or other variables;
3.
Prescription of qualitative tests for investments and conditions under which investments may be made, including requirements of specified ratings from investment advisory services, listing on specified stock exchanges, collateral, marketability, the financial and legal status of the issuer and its earnings capacity, and currency matching.
(2)
Exemptions. The commissioner may by order grant an insurer exemption from any restriction under sub. (1) to the extent that the commissioner is satisfied that the interests of insureds, creditors and the public of this state are sufficiently protected in other ways, such as by the investment regulation actually exercised in the domicile of a nondomestic insurer; or by other evidence of the solidity of the insurer and the competence of its management and its investment advisers.
(3)
Extensions. The commissioner may by rule apply to a class of insurers any restriction of sub. (1), more than 5 years after issuance of a certificate of authority, if the commissioner finds that financial condition or management require additional investment regulation for the protection of the interests of insureds, creditors or the public in this state.
History:  1971 c. 260; 1979 c. 102 s. 236 (6).
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.04 - Specific orders.

620.04
Specific orders.
(1)
Additional restrictions. If the commissioner finds that by reason of investment conditions generally or of the financial condition or current investment practice of an individual insurer, the interests of insureds, creditors, or the public are or may be endangered, the commissioner may do any of the following:
(a)
For insurers that are not restricted under s. 620.03, impose reasonable and temporary restrictions upon the investments of an individual insurer, including prohibition or divestment of a particular investment.
(b)
For insurers that are subject to s. 620.03, impose reasonable restrictions upon the investments of an individual insurer, including prohibition or divestment of a particular investment.
(2)
Consent investments. The commissioner may count an asset toward satisfaction of the compulsory surplus requirement or the security surplus standard, or both, even if it does not conform to this chapter or rules promulgated thereunder, if the commissioner finds that counting it does not endanger the interests of insureds, creditors or the public.
(3)
Alien investments. The commissioner may count toward satisfaction of the compulsory surplus requirement or the security surplus standard any assets in which an insurer must invest under the laws of a country other than the United States as a condition for doing business in that country if the commissioner finds that counting them does not endanger the interests of insureds, creditors or the public of this state.
History:  1971 c. 260; 1979 c. 102 s. 236 (6); 1991 a. 316; 2015 a. 90.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.05 - Protection against currency fluctuations.

620.05
Protection against currency fluctuations.
Any insurer doing business that requires it to make payment in different currencies shall have investments in securities in each of such currencies in an amount that independently of all other investments meets the requirements of chs. 600 to 646 as applied separately to the insurer's obligations in each currency. The commissioner may by order exempt an insurer, or by rule a class of insurers, from this requirement if the obligations in other currencies are small enough that no significant problem for solidity would be created by substantial fluctuations in relative currency values.
History:  1977 c. 339; 1979 c. 89.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.12 - Disposal of prohibited assets.

620.12
Disposal of prohibited assets.
(1)
Investments becoming illegal. The commissioner shall allow a reasonable time not longer than 10 years for disposal of any investment legally held on April 30, 1972, or of any investment legal when made but subsequently becoming illegal.
(2)
Hardship cases. A reasonable time shall be allowed for disposal of assets if the investment was made by mistake or if forced sale of the asset would be contrary to the interests of insureds, creditors or the public of this state.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.21 - Effect of investment restrictions.

620.21
Effect of investment restrictions.
(1)
General. Assets may be counted toward satisfaction of the compulsory surplus requirement or the security surplus standard only so far as they are invested in compliance with this chapter and applicable rules promulgated by the commissioner.
(2)
Exemption from limitations for assets acquired in enforcing rights. Assets necessarily acquired in the bona fide enforcement of creditors' rights may be counted for the purposes of sub. (1) for 5 years after acquisition if real property and one year if not real property, even if they could not otherwise be counted under this chapter. The commissioner may allow reasonable extensions of such periods if replacement of the assets within the periods would not be possible without substantial loss.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.22 - Permitted classes of investments.

620.22
Permitted classes of investments.
Any of the following classes of investments may be counted for the purposes specified in s. 620.21, whether the investments are made by the insurer alone or as a participant in a partnership or joint venture:
(1)
Bonds or other evidences of indebtedness of governmental units in the United States or Canada, or the instrumentalities of such governmental units, or of private corporations domiciled in the United States or Canada.
(2)
Loans secured by mortgages, trust deeds, or other security interests in tangible property located in the United States or Canada or secured by insurance against default issued by a government insurance corporation of the United States or Canada or an insurer authorized to do business in this state.
(3)
Preferred or common stock of any United States or Canadian corporation.
(4)
Property needed for the convenient transaction of the insurer's business.
(5)
Real property, together with the fixtures, furniture, furnishings, and equipment pertaining to the real property, that is located in the United States or Canada and that produces, or after suitable improvement can reasonably be expected to produce, substantial income.
(6)
Loans upon the security of the insurer's own policies in amounts that are adequately secured thereby and that in no case exceed the surrender values of the policies.
(7)
Investments in property and facilities for the development and production of solar or geothermal energy, fossil or synthetic fuel, or gasohol, including, but not limited to, ownership and control of such property and facilities, of up to 5 percent of the portion of the insurer's assets that exceeds $2 billion.
(8)
Any other investments that the commissioner authorizes by rule.
(9)
Investments not otherwise permitted by this section, and not specifically prohibited by statute, to the extent of not more than 5 percent of the first $500,000,000 of the insurer's assets plus 10 percent of the insurer's assets exceeding $500,000,000.
History:  1971 c. 260; 1979 c. 279; 1981 c. 307; 2001 a. 103.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.23 - Limitations generally applicable.

620.23
Limitations generally applicable.
(1)
Class limitations. For the purposes of s. 620.21, the following limitations on classes of investments apply:
(a)
Investments authorized by s. 620.22 (1) which are not amortizable under applicable valuation rules, 5 percent of assets;
(b)
Investments authorized by s. 620.22 (4), 20 percent of assets in the case of nonassessable insurers, and 50 percent of the earned premium and assessments for the preceding calendar year in the case of assessable insurers;
(c)
Investments authorized by s. 620.22 (5), 20 percent of assets in the case of life insurers, and 10 percent of assets in the case of nonlife insurers; and
(d)
Investments by life insurers in common stock and in shares of mutual funds, 20 percent of assets.
(2)
Individual limitations. For the purposes of s. 620.21, the following limits on investments apply:
(a)
Common stock. Common stock of a single corporation and its affiliates, other than subsidiaries of the types authorized under s. 611.26 (1) to (3) or mutual funds, 3 percent of assets;
(b)
Total investments. All securities of a single issuer and its affiliates, other than the government of the United States and subsidiaries of the types authorized under s. 611.26 (1) to (3), 10 percent of assets.
(3)
Investment subsidiaries. For the purpose of determining compliance with the limitations of this chapter, the assets of subsidiaries under s. 611.26 (2) shall be deemed to be owned directly by the insurer and any other investors in proportion to the market value, or if there is no market, the reasonable value, of their interest in the subsidiaries.
(4)
Effect of quantity limitations. To the extent that investments exceed the limitations specified in subs. (1) and (2), the excess may be assigned to the investment class authorized in s. 620.22 (9), until that limit is exhausted.
(5)
Special rule for mutual funds and other investment companies. If the commissioner considers it desirable in order to get a proper evaluation of the investment portfolio of an insurer, the commissioner may require that investments in mutual funds or other investment companies be treated for purposes of this chapter as if the investor owned directly its proportional share of the assets owned by the mutual fund or investment company.
History:  1971 c. 260; 1979 c. 102 s. 236 (6); 1979 c. 110 s. 60 (11); 1979 c. 279 s. 9; 1981 c. 307.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.25 - Relationship to other statutes.

620.25
Relationship to other statutes.
(1)
This chapter shall prevail over any other statute purporting to authorize an insurer to make a particular investment if the other statute was enacted before May 13, 1980, and shall prevail over any statute enacted thereafter unless the latter negates the application of this section or of particular provisions in this chapter by specifically designating them by number.
(2)
This section does not apply to s. 234.26.
History:  1979 c. 279; 2009 a. 33; 2013 a. 271.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.31 - Valuation of assets.

620.31
Valuation of assets.
For the purposes of this chapter, except as otherwise provided by chs. 600 to 646, all assets shall be valued as they are valued for purposes of the financial statements submitted under s. 601.42 (1g) (a), less the amount of any investment fluctuation reserves explicitly attributable to them.
History:  1971 c. 260; 1979 c. 89; 1987 a. 247.
2023 Wisconsin Statutes & Annotations › Chapter 620 - Insurance — investments. › 620.32 - Investment valuation reserves.

620.32
Investment valuation reserves.
(1)
General. The commissioner may by rule, applicable to all or specified classes of insurers, provide for the establishment in reasonable amounts of investment valuation reserves that are necessary and appropriate to lessen the impact on surplus of the fluctuation of the values of specific classes of assets.
(2)
Specific. The commissioner may by order require an individual insurer to establish investment valuation reserves in addition to those required for other insurers of the class to which the insurer belongs, to the extent that the financial condition of the insurer and the nature of its assets and liabilities or business require that such reserves be established for the adequate protection of its insureds.
(3)
Uniformity. So far as reasonably possible, reserves required under sub. (1) shall correspond with those generally required in other states.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 622 - Own risk and solvency assessment. › 622.03 - Definitions.

622.03
Definitions.
In this chapter, unless the context indicates otherwise:
(1)
“Guidance manual" means the most current version of the Own Risk and Solvency Assessment Guidance Manual developed and adopted by the National Association of Insurance Commissioners as of January 1, 2015, subject to the adoption of any amendments by the commissioner under s. 601.415 (11).
(2)
“Insurance holding company system" means 2 or more persons that are affiliates, at least one of which is an insurer.
(3)
“Insurer" means an insurer domiciled in this state, except that “insurer" does not include agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state.
(4)
“Lead state" means the state in which an insurer member of an insurance holding company system is domiciled and that is determined to be the lead state under the procedures in the financial analysis handbook most recently adopted by the National Association of Insurance Commissioners.
(5)
“Own risk and solvency assessment" means a confidential internal assessment, appropriate to the nature, scale, and complexity of an insurer or insurance holding company system, conducted by that insurer or insurance holding company system, of the material and relevant risks associated with the insurer's or insurance holding company system's current business plan and of the sufficiency of capital resources to support those risks.
(6)
“Summary report" means a confidential high-level summary of an insurer's or insurance holding company system's own risk and solvency assessment.
History:  2013 a. 279.
2023 Wisconsin Statutes & Annotations › Chapter 622 - Own risk and solvency assessment. › 622.05 - Risk management framework.

622.05
Risk management framework.
An insurer shall maintain a risk management framework to assist the insurer in identifying, assessing, monitoring, managing, and reporting on its material and relevant risks. This requirement is satisfied if the insurer is a member of an insurance holding company system that maintains a risk management framework applicable to the operations of the insurer.
History:  2013 a. 279.
2023 Wisconsin Statutes & Annotations › Chapter 622 - Own risk and solvency assessment. › 622.07 - Own risk and solvency assessment requirement.

622.07
Own risk and solvency assessment requirement.
Subject to s. 622.11, an insurer, or the insurance holding company system of which the insurer is a member, shall regularly conduct an own risk and solvency assessment consistent with the process specified in the guidance manual. The own risk and solvency assessment must be conducted whenever there are significant changes to the risk profile of the insurer or the insurance holding company system of which the insurer is a member, but in no case less often than annually.
History:  2013 a. 279.
2023 Wisconsin Statutes & Annotations › Chapter 622 - Own risk and solvency assessment. › 622.09 - Own risk and solvency assessment summary report.

622.09
Own risk and solvency assessment summary report.
(1)
Filing with the commissioner. An insurer must file with the commissioner a summary report or any combination of reports that together contain the information described in the guidance manual applicable to the insurer and, if applicable, the insurance holding company system of which the insurer is a member as follows:
(a)
Within 45 days after the date on which the final summary report is provided to the insurer's board of directors or the appropriate committee of that board, but no more than once each year if either of the following applies:
1.
The insurer is domiciled in Wisconsin and is not a member of an insurance holding company system.
2.
The insurer is a member of an insurance holding company system and the commissioner is the lead state commissioner.
(b)
Within 45 days after the date on which the final summary report is filed with the commissioner of the insurer's lead state if all of the following apply:
1.
The insurer is domiciled in Wisconsin.
2.
The insurer is a member of an insurance holding company system for which the commissioner is not the lead state commissioner.
(2)
Attestation. The summary report shall include the signature of the insurer's, or insurance holding company system's, chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process attesting to the best of his or her belief and knowledge that the insurer applies the enterprise risk management process described in the summary report and that a copy of the summary report has been provided to the insurer's board of directors or the appropriate committee of that board.
(3)
Alternate filing. An insurer may satisfy sub. (1) by providing the most recent summary report provided by the insurer or another member of the insurance holding company system of which the insurer is a member to the commissioner of another state or to a supervisor or regulator of a jurisdiction not located in the United States or any of its territories, if that summary report provides information that is substantially comparable to the information described in the guidance manual. Any such summary report in a language other than English must be accompanied by a translation of that summary report into English.
History:  2013 a. 279.
2023 Wisconsin Statutes & Annotations › Chapter 622 - Own risk and solvency assessment. › 622.13 - Contents of summary report.

622.13
Contents of summary report.
(1)
Preparation. The summary report shall be prepared consistently with the guidance manual. Documentation and supporting information shall be maintained and made available upon examination or upon request of the commissioner.
(2)
Review. The commissioner's review of the summary report, and any additional requests for information, shall be made using similar procedures used in the analysis and examination of multistate or global insurers and insurance holding company systems.
History:  2013 a. 279.
2023 Wisconsin Statutes & Annotations › Chapter 622 - Own risk and solvency assessment. › 622.17 - Penalty.

622.17
Penalty.
Notwithstanding s. 601.64 (1) and (4), an insurer that is subject to this chapter that fails, without just cause, to timely file the summary report required under s. 622.09 is subject to the penalties under s. 601.64 (2) and (3).
History:  2013 a. 279.
2023 Wisconsin Statutes & Annotations › Chapter 623 - Insurance — accounting and reserves. › 623.02 - Standards for accounting rules.

623.02
Standards for accounting rules.
When promulgating accounting rules, the commissioner shall consider recommendations made by the National Association of Insurance Commissioners, generally accepted accounting principles both in the insurance industry and outside it, the requirements of the law and the needs of regulation, including detection of insolvency, and the needs for information of insureds, investors, and the public.
History:  1973 c. 293.
NOTE:  The bill that created ss. 623.02 to 623.04 and s. 623.21, 1973 SB 174, contained extensive explanatory notes that may be found in the bill drafting file in the Legislative Reference Bureau for Chapter 293, laws of 1973.
2023 Wisconsin Statutes & Annotations › Chapter 623 - Insurance — accounting and reserves. › 623.03 - Valuation of assets.

623.03
Valuation of assets.
The commissioner shall promulgate rules for the valuation of assets to be reported on the statements submitted under s. 601.42 (1g) (a) as well as for other purposes. The commissioner may specify that certain classes of assets shall be valued at zero or given a nominal value, and when necessary to achieve the purposes of this section may specify different bases of valuation for different purposes.
History:  1973 c. 293; 1979 c. 102 s. 236 (7); 1987 a. 247.
2023 Wisconsin Statutes & Annotations › Chapter 623 - Insurance — accounting and reserves. › 623.04 - Valuation of liabilities.

623.04
Valuation of liabilities.
The commissioner shall promulgate rules specifying the liabilities required to be reported by insurers in the financial statements submitted under s. 601.42 (1g) (a) and the methods of valuing them. In the case of life insurance such methods shall be consistent with s. 623.06.
History:  1973 c. 293; 1977 c. 153 s. 6; 1977 c. 339 s. 44; 1987 a. 247.
2023 Wisconsin Statutes & Annotations › Chapter 623 - Insurance — accounting and reserves. › 623.12 - Amount of security surplus.

623.12
Amount of security surplus.
The security surplus shall be set by the commissioner between 110 percent and 140 percent of the compulsory surplus. In setting the figure the commissioner may consider such factors as the size of the insurer, its recent experience, the volatility of the lines of insurance in which it engages and any other relevant factors.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 623 - Insurance — accounting and reserves. › 623.15 - Fraternal rates and reserves.

623.15
Fraternal rates and reserves.
(1)
Nonreserve fraternals.
(a)
In this subsection, “owner" means the owner of a policy or certificate issued by a fraternal in accordance with s. 614.10.
(b)
A fraternal may be organized for the transaction of business on a plan set forth in the contract which provides for sufficient contributions by each owner in each year to pay the owner's share of the actual death claims of the year through advance payments graded according to any mortality table approved by the commissioner, without any reserve, or with such reserve as may accumulate from overpayments of individual owners, in which case each owner shall each year be informed of the owner's credit and of the cost of the owner's insurance.
(2)
Rates. Every fraternal shall collect regular premiums for each coverage it provides at adequate rates that are approved by the commissioner or conform to standards set in rules promulgated by the commissioner.
(3)
Reserves. The reserves of a fraternal are subject to the same requirements as those of ch. 611 insurers writing the same coverages except that the commissioner may authorize the use of suitable fraternal mortality tables or other appropriate tables instead of the tables used by ch. 611 insurers.
History:  1975 c. 373, 421; 1989 a. 336; 1997 a. 177.
Legislative Council Note, 1975: Sub. (1) continues s. 208.18 with a change from a specified mortality table to one approved by the commissioner. A nonreserve society can be perfectly sound actuarially and should be permitted if it is. The natural premium basis contemplated by this section is sound but not very attractive in the market.
Sub. (2) continues in simplified form the provisions of s. 208.15 (1) and (2).
Sub. (3) much simplifies ss. 208.09 (2) (b) and (c) and 208.15 (4) and (5). [Bill 643-S]
2023 Wisconsin Statutes & Annotations › Chapter 623 - Insurance — accounting and reserves. › 623.34 - Accounting for repurchased shares.

623.34
Accounting for repurchased shares.
When a corporation acquires its own shares under s. 611.34 or in any other way, the acquired shares shall be accounted for as a deduction from capital and not as assets.
History:  1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.01 - Construction and purposes.

625.01
Construction and purposes.
(1)
Construction. This chapter shall be liberally construed to achieve the purposes stated in sub. (2), which shall constitute an aid and guide to interpretation but not an independent source of power.
(2)
Purposes. The purposes of this chapter are:
(a)
To protect policyholders and the public against the adverse effects of excessive, inadequate or unfairly discriminatory rates;
(b)
To encourage, as the most effective way to produce rates that conform to the standards of par. (a), independent action by and reasonable price competition among insurers;
(c)
To provide formal regulatory controls for use if independent action and price competition fail;
(d)
To authorize cooperative action among insurers in the rate-making process, and to regulate such cooperation in order to prevent practices that tend to bring about monopoly or to lessen or destroy competition;
(e)
To encourage the most efficient and economic marketing practices; and
(f)
To regulate the business of insurance in a manner that will preclude application of federal antitrust laws.
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.02 - Definitions.

625.02
Definitions.
In this chapter, unless contrary to context:
(1)
“Market segment" means any line or kind of insurance or, if it is described in general terms, any subdivision thereof or any class of risks or combination of classes.
(2)
“Rate service organization" means any person, other than an employee of an insurer, who assists insurers in rate making or filing by:
(a)
Collecting, compiling and furnishing loss or expense statistics;
(b)
Recommending, making or filing rates or supplementary rate information; or by
(c)
Advising about rate questions, except as an attorney giving legal advice.
(3)
“Supplementary rate information" includes any manual or plan of rates, statistical plan, classification, rating schedule, minimum premium, policy fee, rating rule, rate-related underwriting rule and any other information prescribed by rule of the commissioner.
History:  1983 a. 189.
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.03 - Scope of application.

625.03
Scope of application.
(1m)
This chapter applies to all kinds and lines of direct insurance written on risks or operations in this state by any insurer authorized to do business in this state, except:
(a)
Ocean marine insurance;
(b)
Worker's compensation insurance;
(c)
Life insurance other than credit life insurance;
(d)
Variable and fixed annuities; and
(e)
Group and blanket accident and sickness insurance other than credit accident and sickness insurance.
(f)
Funding agreements authorized under s. 632.66.
(7)
To the extent that ch. 424 is inconsistent with this chapter, ch. 424 shall apply.
History:  1973 c. 3; 1975 c. 147 s. 54; 1975 c. 373; 1999 a. 85; 2021 a. 114.
Legislative Council Note to sub. (3), 1975: Fraternals should be subjected to rate regulation to the same extent as and no farther than other insurers. [Bill 643-S]
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.04 - Exemptions.

625.04
Exemptions.
The commissioner may by rule exempt any person or class of persons or any market segment from any or all of the provisions of this chapter, if and to the extent that the commissioner finds their application unnecessary to achieve the purposes of this chapter.
History:  1979 c. 102 s. 236 (6).
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.11 - Rate standards.

625.11
Rate standards.
(1)
General. Rates shall not be excessive, inadequate or unfairly discriminatory, nor shall an insurer charge any rate which if continued will have or tend to have the effect of destroying competition or creating a monopoly.
(2)
Excessiveness.
(a)
Competitive market. Rates are presumed not to be excessive if a reasonable degree of price competition exists at the consumer level with respect to the class of business to which they apply. In determining whether a reasonable degree of price competition exists, the commissioner shall consider all relevant tests including:
1.
The number of insurers actively engaged in the class of business;
2.
The existence of rate differentials in that class of business;
3.
Whether long-run profitability for insurers generally of the class of business is unreasonably high in relation to its riskiness.
(b)
Noncompetitive market. If such competition does not exist, rates are excessive if they are likely to produce a long run profit that is unreasonably high in relation to the riskiness of the class of business, or if expenses are unreasonably high in relation to the services rendered.
(3)
Inadequacy. Rates are inadequate if they are clearly insufficient, together with the investment income attributable to them, to sustain projected losses and expenses in the class of business to which they apply.
(4)
Unfair discrimination. One rate is unfairly discriminatory in relation to another in the same class if it clearly fails to reflect equitably the differences in expected losses and expenses. Rates are not unfairly discriminatory because different premiums result for policyholders with like loss exposures but different expense factors, or like expense factors but different loss exposures, so long as the rates reflect the differences with reasonable accuracy. Rates are not unfairly discriminatory if they are averaged broadly among persons insured under a group, franchise or blanket policy.
Read together, ss. 625.11 and 625.22 provide that the insurance commissioner shall disapprove any rate that destroys competition, thus providing a regulatory remedy for rates that constitute restraints of trade and barring private rate-related suits for damages. Prentice v. Minnesota Title Ins. Co. 176 Wis. 2d 714, 500 N.W.2d 658 (1993).
There is no active state supervision of the organization established by title insurance companies to set uniform rates for its members and thus no “state-action immunity" for otherwise prohibited price-fixing engaged in by the member title insurers. FTC v. Ticor Title Insurance Co. 504 U.S. 621, 119 L. Ed. 2d 410 (1992).
There is no private right of action to enforce sub. (1). NAACP v. American Family Mutual Insurance Co. 978 F.2d 287 (1992).
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.12 - Rating methods.

625.12
Rating methods.
In determining whether rates comply with the standards under s. 625.11, the following criteria shall be applied:
(1)
Basic factors in rates. Due consideration shall be given to all of the following that apply:
(a)
Past and prospective loss and expense experience within and outside of this state.
(b)
Catastrophe hazards and contingencies.
(c)
Trends within and outside of this state.
(d)
Loadings for leveling premium rates over time or for dividends or savings to be allowed or returned by insurers to their policyholders, members or subscribers.
(e)
Subject to s. 632.365, all other relevant factors, including the judgment of technical personnel.
(2)
Classification. Except as provided in s. 632.729, risks may be classified in any reasonable way for the establishment of rates and minimum premiums, except that no classifications may be based on race, color, creed or national origin, and classifications in automobile insurance may not be based on physical condition or developmental disability as defined in s. 51.01 (5). Subject to ss. 632.365 and 632.729, rates thus produced may be modified for individual risks in accordance with rating plans or schedules that establish reasonable standards for measuring probable variations in hazards, expenses, or both. Rates may also be modified for individual risks under s. 625.13 (2).
(3)
Expenses. The expense provisions included in the rates to be used by an insurer may reflect the operating methods of the insurer and, so far as it is credible, its own expense experience.
(4)
Profits. The rates may contain an allowance permitting a profit that is not unreasonable in relation to the riskiness of the class of business.
History:  1975 c. 275; 1977 c. 418 s. 929 (55); 1979 c. 93; 1991 a. 279; 2019 a. 185.
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.13 - Filing of rates and consent to rate.

625.13
Filing of rates and consent to rate.
(1)
Filing procedure. Except as provided in sub. (2), every authorized insurer and every rate service organization licensed under s. 625.31 which has been designated by any insurer for the filing of rates under s. 625.15 (2) shall file with the commissioner all rates and supplementary rate information and all changes and amendments thereof made by it for use in this state within 30 days after they become effective.
(2)
Consent to rate. Upon written application of the insured, stating the insured's reasons therefor, filed with and not disapproved by the commissioner within 10 days after filing, a rate in excess of that provided by a filing otherwise applicable may be applied to any specific risk. The rate may be disapproved without a hearing, subject to s. 601.62 (3). If disapproved, the rate otherwise applicable applies from the effective date of the policy, but the insurer may cancel the policy proportionally on 10 days' notice to the policyholder. If the insurer does not cancel the policy the insurer shall refund any excess premium from the effective date of the policy.
History:  1979 c. 93, 177; 1983 a. 36.
Legislative Council Note, 1979: This amendment to sub. (2) legitimizes a practice that is virtually universal throughout the country. Although it was not specifically provided for in ch. 625, the Office of the Commissioner of Insurance has assumed that ch. 625 intended to continue it and has accepted and handled “consent to rate" filings much as it did prior to the enactment of ch. 625. Adoption of the amendment makes it clear that the department practice is appropriate. [Bill 20-S]
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.15 - Delegation of rate making and rate filing obligation.

625.15
Delegation of rate making and rate filing obligation.
(1)
Rate making. An insurer may itself establish rates and supplementary rate information for one or more market segments based on the factors in s. 625.12 and, if the rates are for motor vehicle liability insurance, subject to s. 632.365, or the insurer may use rates and supplementary rate information prepared by a rate service organization, with average expense factors determined by the rate service organization or with such modification for its own expense and loss experience as the credibility of that experience allows.
(2)
Rate filing. An insurer may discharge its obligation under s. 625.13 (1) by giving notice to the commissioner that it uses rates and supplementary rate information prepared by a designated rate service organization, with such information about modifications thereof as is necessary fully to inform the commissioner. The insurer's rates and supplementary rate information shall be those filed from time to time by the rate service organization, including any amendments thereto as filed, subject, however, to the modifications filed by the insurer.
History:  1979 c. 177 s. 85; 1991 a. 279.
2023 Wisconsin Statutes & Annotations › Chapter 625 - Insurance — rate regulation. › 625.16 - Loss ratios for certain disability policies.

625.16
Loss ratios for certain disability policies.
The commissioner may by rule establish reasonable minimum standards for loss ratios of medicare supplement policies, medicare replacement policies and long-term care insurance policies. The standards shall be based on incurred claims experience and earned premiums and be in accord with accepted actuarial principles so that benefits will be reasonable in relation to the premiums charged.
History:  1981 c. 82; 1985 a. 29; 1989 a. 31.