reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 609 - Defined network plans. › 609.94 - Summary of restrictions.

609.94
Summary of restrictions.
(1)
A health maintenance organization insurer shall deliver a written notice that complies with sub. (2) to all of the following:
(a)
Each provider that contracts with the health maintenance organization insurer to provide health care services, at the time that the health maintenance organization insurer and provider enter into a contract.
(b)
Each participating provider of the health maintenance organization insurer, at the time that the provider becomes a participating provider.
(2)
The notice shall contain a summary of ss. 609.91 to 609.935 and 609.97 (1) and a statement that the health maintenance organization insurer files financial statements with the office which are available for public inspection. The commissioner may, by rule, specify a form for providing the notice required under this section. If the commissioner promulgates such a rule, any notice delivered on or after the effective date of the rule shall comply with the form specified by rule.
History:  1989 a. 23; 1997 a. 237.
2023 Wisconsin Statutes & Annotations › Chapter 609 - Defined network plans. › 609.95 - Minimum covered liabilities.

609.95
Minimum covered liabilities.
A health maintenance organization insurer, whether first licensed or organized before, on or after July 1, 1989, shall maintain, on and after January 1, 1990, at least 65 percent of its liabilities for health care costs as covered liabilities.
History:  1989 a. 23.
2023 Wisconsin Statutes & Annotations › Chapter 609 - Defined network plans. › 609.96 - Initial capital and surplus requirements.

609.96
Initial capital and surplus requirements.
(1)
Minimum capital and permanent surplus.
(a)
Except as provided in par. (b), if a health maintenance organization insurer is first licensed or organized on or after July 1, 1989, the minimum capital or permanent surplus for the health maintenance organization insurer is $750,000.
(b)
The commissioner may require a greater amount or permit a lesser amount than that specified under sub. (1) by rule promulgated, or order issued, on or after July 1, 1989.
(2)
Initial expendable surplus. A health maintenance organization insurer subject to sub. (1) shall have an initial expendable surplus, after payment of all organizational expenses, of at least 50 percent of the minimum capital or minimum permanent surplus required under sub. (1), or such other percentage as the commissioner specifies by rule promulgated, or order issued, on or after July 1, 1989.
History:  1989 a. 23.
2023 Wisconsin Statutes & Annotations › Chapter 609 - Defined network plans. › 609.97 - Compulsory and security surplus.

609.97
Compulsory and security surplus.
(1)
Amount of compulsory surplus. Except as otherwise provided by rule or order under sub. (2), a health maintenance organization insurer, whether first licensed or organized before, on or after July 1, 1989, shall maintain a compulsory surplus in an amount determined as follows:
(a)
Beginning on July 1, 1989, and ending on December 31, 1989, the compulsory surplus shall be equal to at least the greater of $200,000 or 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
(b)
Beginning on January 1, 1990, and ending on December 31, 1991, the compulsory surplus shall be equal to at least the greater of $500,000 or:
1.
If before January 1, 1991, 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
2.
If on or after January 1, 1991:
a.
If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is less than 90 percent, 4.5 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
b.
If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is at least 90 percent, 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
(c)
Beginning on January 1, 1992, the compulsory surplus shall be equal to at least the greater of $750,000 or:
1.
If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is less than 90 percent, 6 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
2.
If the percentage of the liabilities of the health maintenance organization insurer that are covered liabilities is at least 90 percent, 3 percent of the premiums earned by the health maintenance organization insurer in the previous 12 months.
(2)
Modification by rule or order. The commissioner may require a greater amount or permit a lesser amount than that specified under sub. (1) by rule promulgated, or order issued, on or after July 1, 1989. The commissioner may consider the risks and factors described under s. 623.11 (1) (a) and (b) in promulgating a rule or issuing an order under this subsection.
(3)
Amount of security surplus. A health maintenance organization insurer, whether first licensed or organized before, on or after July 1, 1989, shall maintain a security surplus in the amount set by the commissioner under s. 623.12.
History:  1989 a. 23.
2023 Wisconsin Statutes & Annotations › Chapter 609 - Defined network plans. › 609.98 - Special deposit.

609.98
Special deposit.
(1)
Definition. In this section, “premiums" has the meaning given under s. 646.51 (1c) (c).
(2)
Duty; amount.
(a)
Before April 1, 1990, and before April 1 of each following year, a health maintenance organization insurer shall deposit under s. 601.13 an amount that is at least equal to the lesser of the following:
1.
An amount necessary to establish or maintain a deposit equaling 1 percent of premiums written in this state by the health maintenance organization insurer in the preceding calendar year.
2.
With respect to the amount due before April 1, 1990, 0.5 percent of premiums written in this state by the health maintenance organization insurer in the preceding calendar year, unless otherwise provided by rule or order under par. (b).
3.
With respect to the amount due in the years after 1990, one-third of 1 percent of the premiums written in this state by the health maintenance organization insurer in the preceding calendar year, unless otherwise provided by rule or order under par. (b).
(b)
The commissioner may, by rule or order, require that the deposit under par. (a) be in an amount greater than that provided under par. (a) 2. or 3., but the commissioner may not require an amount exceeding the amount provided under par. (a) 1.
(3)
Status of deposit. A deposit under this section is in addition to any deposit otherwise required or permitted by law or the commissioner. An amount deposited under this section is not available for the purpose of determining permanent capital or surplus, compulsory surplus or the financial condition, including insolvency, of the health maintenance organization insurer.
(4)
Release of deposit. A deposit under this section may be released only with the approval of the commissioner under s. 601.13 (10) and only in any of the following circumstances:
(a)
To pay an assessment under s. 646.51 (3) (am).
(b)
To the extent that the amount on deposit exceeds 1 percent of premiums written in this state by the health maintenance organization insurer in the preceding calendar year and the deposit is not necessary to pay an assessment under s. 646.51 (3) (am).
(c)
To pay claimants and creditors as provided by s. 601.13 (2).
History:  1989 a. 23; 2003 a. 261.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.001 - Purposes.

610.001
Purposes.
The purposes of chs. 611 to 616 are:
(1)
To provide an orderly procedure by which insurers may be created, governed and dissolved;
(2)
To provide for procedures to merge, consolidate or convert various kinds of insurers;
(3)
To provide for structure and management that will maximize democratic participation in the operation of insurers; and
(4)
To prevent or control self-dealing by management in order to protect the interests of shareholders, policyholders, members, subscribers and the public.
History:  1971 c. 260; 1979 c. 102 s. 237; 1979 c. 261.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.01 - Definitions.

610.01
Definitions.
In chs. 610 to 620 and 644, unless the context requires otherwise:
(1)
“Director" includes “trustee".
(2)
“Officer" does not include “director".
(3)
“Promoter stock" means shares issued by a domestic stock corporation under ss. 611.18 (2) (a) 2. and 611.32 (1), and shares issued within 5 years after the initial issuance of the certificate of authority, to incorporators, directors, principal officers, members of the families of any of these persons, and to any corporations controlled by, or any trustee acting in behalf of, any of these persons.
(4)
In any provision of ch. 180 or 181 made applicable by any section of chs. 600 to 646, “department" shall be read “commissioner of insurance".
History:  1971 c. 260; 1979 c. 102, 177; 1983 a. 189; 1995 a. 27; 1997 a. 227.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.11 - Qualified insurers.

610.11
Qualified insurers.
No person may do an insurance business as defined in s. 618.02 (2) on the person's own account in this state, either in person, or through agents or brokers, or through the mail or any other method of communication, except:
(1)
An insurer authorized to do business in this state, within the limits of its certificate of authority; or
(2)
An insurer doing business under s. 618.41.
History:  1971 c. 260; 1991 a. 316.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.21 - Other business.

610.21
Other business.
(1)
Prohibition for domestic insurers. No domestic insurer may engage, directly or indirectly, in any business other than insurance and business reasonably incidental to its insurance business, except as specifically authorized by s. 611.26 (4), 611.26 (4) as incorporated by s. 614.24 (1), or s. 613.26 or any other provision of chs. 600 to 646; except that a domestic insurer not restricted under s. 620.03 may engage directly in any activity to the extent it is authorized to do so through a subsidiary.
(2)
Prohibition for nondomestic insurers. No nondomestic insurer may engage in this state in any business forbidden to a domestic insurer, nor may the insurer engage in such business elsewhere if:
(a)
The law of the insurer's domicile forbids an insurer to engage in such business; or
(b)
The statutes of this state specifically prohibit a nondomestic insurer to engage in such business elsewhere; or
(c)
The commissioner orders it to cease doing such business upon finding that doing such business is not consistent with the interests of its insureds, creditors or the public in this state; or that it gives the insurer a substantial competitive advantage in relation to domestic insurers.
(3)
Incidental business. “Incidental business" includes:
(a)
The business of preparing and selling abstracts of title and related documents, if done by an insurer authorized to transact title insurance;
(b)
Business that could be done through ancillary subsidiaries authorized under s. 611.26 (3), or, in the case of a nondomestic insurer, through corporations that would be so authorized if the insurer were domestic.
(4)
Annuities. For purposes of this section, “insurance" includes “annuities".
History:  1971 c. 260; 1975 c. 373; 1979 c. 102, 177; 1981 c. 307.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.23 - Power to hold property in other than own name.

610.23
Power to hold property in other than own name.
An insurer shall hold all investments and deposits of its funds in its own name except that:
(1)
Custodial or trust arrangements. Securities kept under a custodial agreement or trust arrangement with a bank or banking and trust company may be issued in the name of a nominee of the bank or banking and trust company; and
(2)
Bearer securities. Any insurer may acquire and hold securities in bearer form.
History:  1975 c. 373.
Legislative Council Note, 1975: This section continues s. 201.24 (4), made applicable to all insurers. The power certainly exists under ss. 180.04 (17) and 181.04 (16) as incorporated in ss. 611.07 (1), 612.03 and 614.07 (1), but this section places it beyond doubt for all insurers and permits the repeal of s. 201.24 (4). [Bill 643-S]
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.24 - Insurers as fundholders.

610.24
Insurers as fundholders.
All assets shall be held, invested and disbursed for the use and benefit of the insurer and no policyholder, member or beneficiary may have or acquire individual rights in such assets or become entitled to any apportionment or the surrender of any part of such assets, except as provided in the contract. An insurer may create, maintain, invest, disburse and apply any special funds necessary to carry out any purpose permitted by the laws of this state and the articles and bylaws of the insurer.
History:  1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.40 - Continued effect of transitional provisions.

610.40
Continued effect of transitional provisions.
Sections 610.41 to 610.53, 1981 stats., continue to apply to insurers affected by those sections before April 27, 1984.
History:  1983 a. 215.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.50 - Vital records.

610.50
Vital records.
An insurer or an employee, agent or attorney of an insurer is not subject to s. 69.24 (1) (a) for copying a certified copy of a vital record for the insurer's own internal administrative use in connection with the payment of insurance claims or benefits if the copy is marked “FOR ADMINISTRATIVE USE" and is retained in the files of the insurer or attorney.
History:  1987 a. 247.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.61 - Duty of life insurers to report abandoned property.

610.61
Duty of life insurers to report abandoned property.
An insurer doing a life insurance business shall report under subch. IV of ch. 177 any property presumed abandoned under subch. II of ch. 177.
History:  1979 c. 102; 1983 a. 408 s. 16; 2021 a. 87.
2023 Wisconsin Statutes & Annotations › Chapter 610 - Insurers in general. › 610.65 - Uniform claim processing form.

610.65
Uniform claim processing form.
Beginning no later than July 1, 2004, every insurer shall use the uniform claim processing form developed by the commissioner under s. 601.41 (9) (b) when processing a claim submitted by a health care provider, as defined in s. 146.81 (1) (a) to (p).
History:  2001 a. 109; 2009 a. 28.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.01 - Definitions.

611.01
Definitions.
In this chapter, unless the context requires otherwise, all of the following apply:
(1)
Stock corporations. The definitions in s. 180.0103 (2), (3), (14), (15), and (17) apply to stock corporations.
(2)
Mutual corporations. The definitions in s. 181.0103 (3) and (18) apply to mutuals.
(3)
Applicability of other definitions. The definitions of ss. 600.03 and 610.01 apply to corporations under this chapter.
History:  1971 c. 260; 1979 c. 102; 1983 a. 189 s. 329 (22); 1985 a. 195 s. 34; 1989 a. 303; 1997 a. 79; 2001 a. 103.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.02 - Scope and purposes.

611.02
Scope and purposes.
(1)
Scope.
(a)
Domestic insurers. This chapter applies to all insurance corporations, including domestic surplus lines insurers, as defined in s. 618.40 (3m), organized under the laws of this state, except those expressly governed by other chapters.
(b)
Nondomestic insurers. Except as expressly provided, this chapter does not apply to nondomestic insurers.
(2)
Purposes. The purposes of this chapter are:
(a)
To provide a complete, self-contained procedure for the formation of insurance corporations;
(b)
To assure the solidity of insurance corporations by providing an organizational framework to facilitate sound management, sound operation and sound regulation; and
(c)
To strengthen internal corporate democracy through as much stockholder and policyholder participation as is practicable.
History:  1971 c. 260; 2017 a. 16.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.03 - Orders imposing and relaxing restrictions.

611.03
Orders imposing and relaxing 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. 611.28, 611.29 (2), 611.32 (5), 611.33 (1) (a) and (2) (a) 1. and 2., 611.34, 611.54 (1) (b) and 617.22 (2), on a finding 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. 611.28, 611.29 (2), 611.32 (5), 611.33 (1) (a) and (2) (a) 1. and 2., 611.34, 611.54 (1) (b) and 617.22 (2), if the commissioner is satisfied that its financial condition, management and other circumstances assure that the interests of insureds and the public will not be endangered thereby.
History:  1971 c. 260, 307; 1977 c. 203; 1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.07 - General corporate powers and procedures.

611.07
General corporate powers and procedures.
(1)
Powers. Subject to s. 611.63, s. 180.0302 applies to stock corporations and s. 181.0302 (intro.), (1) to (15), (18) and (19) applies to mutuals.
(2)
Effect of unauthorized corporate acts. Section 180.0304 applies to stock corporations and s. 181.0304 applies to mutuals, except that references to “attorney general" shall be read as “commissioner".
(4)
Waiver of notice and informal action by shareholders, policyholders or directors. Sections 180.0704, 180.0706, 180.0821, and 180.0823 apply to stock corporations and ss. 181.0704, 181.0706, 181.0821, and 181.0823 apply to mutuals. Section 180.0821 also applies to a committee of the board of a stock corporation and s. 181.0821 also applies to a committee of the board of a mutual, except that, in both cases, references to “board" shall be read as “committee" and “directors" shall mean members of the board appointed to serve on the committee.
(6)
Power to hold assets as trustee. A life insurance corporation may hold assets under s. 632.42 (1) as trustee or as general corporate assets.
(7)
Correcting filed document. Section 180.0124 applies to stock corporations.
History:  1971 c. 260; 1973 c. 128 ss. 25, 30; 1973 c. 184, 336; 1975 c. 373 s. 40; 1975 c. 375 s. 44; 1975 c. 422; 1979 c. 110; 1987 a. 13; 1989 a. 303; 1997 a. 79, 252; 2015 a. 90.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.10 - Reservation of corporate name.

611.10
Reservation of corporate name.
Sections 180.0402 and 180.0403 (2), (3) and (3m) apply to stock corporations and ss. 181.0402 and 181.0403 (2), (3) and (3m) apply to mutuals.
History:  1971 c. 260; 1973 c. 128; 1981 c. 390 s. 252; 1989 a. 303; 1993 a. 331; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.11 - Incorporators.

611.11
Incorporators.
(1)
General. Any number of corporate or adult natural persons may organize a corporation under this chapter.
(2)
Closely held, subsidiary and affiliated corporations. One to 15 corporate or adult natural persons may organize a corporation under s. 611.22.
(3)
Mutual reinsurance corporations. A mutual reinsurance corporation having the exclusive purpose of providing reinsurance for its member corporations may be organized by 15 or more mutuals under this chapter and town mutuals under ch. 612. The commissioner may exempt the corporation from any of the requirements of ss. 611.12 to 611.20 if the commissioner considers them unnecessary for the protection of the members.
(4)
Municipalities.
(a)
In this subsection, “municipality" has the meaning given in s. 345.05 (1) (c).
(b)
Any number of municipalities or associations of municipalities or both may organize a municipal insurance mutual under s. 611.13, subject to s. 611.23, to provide any of the following for its members:
1.
Worker's compensation insurance.
2.
Liability insurance.
3.
Risk management services.
4.
Property insurance.
History:  1971 c. 260; 1973 c. 243; 1977 c. 346; 1979 c. 102 ss. 236 (6), 237; 1981 c. 390 s. 252; 1995 a. 197; 2003 a. 78; 2009 a. 28; 2011 a. 32.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.12 - Articles and bylaws.

611.12
Articles and bylaws.
(1)
Stock corporations. Section 180.0202 applies to the articles of a stock corporation, except that:
(a)
The name of the corporation shall include the word “insurance" or a term of equivalent meaning, and shall comply with s. 180.0401 (2) to (4);
(am)
The articles shall include a statement that the corporation is organized under this chapter;
(b)
Authorized shares shall conform to s. 611.33 (1); and
(c)
The purposes of the corporation shall be limited to those permitted by s. 610.21.
(2)
Mutuals. Section 181.0202 applies to the articles of a mutual, except that:
(a)
The name of the corporation shall include the words “mutual" and “insurance" or terms of equivalent meaning and shall comply with s. 181.0401 (2) to (4);
(am)
The articles shall include a statement that the corporation is organized under this chapter;
(b)
The articles shall include provision for mutual bonds if any are to be authorized, which shall conform to s. 611.33 (2) (a);
(c)
The purposes of the corporation shall be limited to those permitted in s. 610.21;
(d)
If assessable policies are permitted, the articles shall contain general provisions respecting assessment liabilities and procedures, including a provision specifying the classes of business on which assessment may be separately levied; and
(e)
The articles may specify those classes of persons who may be policyholders, or prescribe the procedure for establishing or removing restrictions on the classes of persons who may be policyholders, and the articles shall state that each policyholder is a member of the corporation.
(3)
Principal officers. Sections 180.0840 and 180.0841 apply to stock corporations and ss. 181.0840 and 181.0841 apply to mutuals. Notwithstanding s. 180.0840 (1) or 181.0840 (1), the articles or bylaws shall specifically designate 3 or more offices, the holders of which shall be the principal officers of the corporation. Notwithstanding s. 180.0840 (3) or 181.0840 (3), the principal offices shall be held by at least 3 separate individuals.
(4)
Bylaws. The bylaws of a domestic corporation shall comply with this chapter, and a copy of the bylaws and any amendments thereto shall be filed with the commissioner within 60 days after adoption. Subject to this subsection, to ss. 611.13 (2) (d) and (5) and 611.22 (4), ss. 180.0206 and 180.1020 to 180.1022 apply to stock corporations and ss. 181.0206, 181.0207 and 181.1021 apply to mutuals.
History:  1971 c. 260; 1989 a. 303; 1997 a. 79; 1999 a. 85.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.14 - Powers under organization permit.

611.14
Powers under organization permit.
(1)
Stock corporations. While its organization permit is in effect a stock corporation may:
(a)
Register stock under s. 611.31, solicit subscriptions subject to s. 180.0620 (1) (a) and receive payment therefor in cash or, with the approval of the commissioner, in other property constituting a permitted investment under ch. 620, and issue receipts for such payment at values approved by the commissioner, but no shares may be issued until a certificate of authority is issued; and
(b)
Transact all other business necessary and appropriate for the organization of the planned insurance enterprise.
(2)
Mutuals. While its organization permit is in effect a mutual may:
(a)
Register mutual bonds under s. 611.31, solicit applications for qualifying insurance policies under s. 611.19 (4) (c) and subscriptions for mutual bonds and contribution notes and receive payment therefor in cash or, with the approval of the commissioner, in property constituting a permitted investment under ch. 620, and issue receipts for such payment at values approved by the commissioner, but no policies or bonds may be issued until a certificate of authority is issued; and
(b)
Transact all other business necessary and appropriate in the organization of the planned insurance enterprise.
History:  1971 c. 260, 307; 1989 a. 303.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.15 - Deposit of proceeds of subscriptions.

611.15
Deposit of proceeds of subscriptions.
All funds, and the securities and documents representing interests in property, received by a stock corporation for stock subscriptions or by a mutual for applications for insurance policies or for mutual bond or contribution note subscriptions shall be deposited in the name of the corporation with a depository approved by the commissioner, subject to an escrow agreement approved by the commissioner under which withdrawals may be made only with the commissioner's approval.
History:  1971 c. 260; 1979 c. 102 s. 236 (14).
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.16 - Termination of organization permit and payment of organization expenses.

611.16
Termination of organization permit and payment of organization expenses.
(1)
Termination. The organization permit shall terminate upon:
(a)
Issuance of a certificate of authority under s. 611.20;
(b)
Revocation under sub. (2); or
(c)
Expiration of one year after issuance unless a good faith application for a certificate of authority has been filed with the commissioner. The commissioner may grant a reasonable extension if the commissioner reasonably expects that the corporation will be able to satisfy the requirements for a certificate of authority within the extended period.
(2)
Revocation. The commissioner may revoke an organization permit if:
(a)
The commissioner finds, after a hearing, that because of changes in circumstances, or because the facts were not as represented in the application, the conditions for issuance of a permit are no longer satisfied; or
(b)
The commissioner denies an application for a certificate of authority and finds that the corporation cannot reasonably be expected to satisfy the requirements for a certificate of authority within the remaining term of the organization permit or any extension thereof under sub. (1) (c).
(3)
Reimbursements and refunds.
(a)
General. Except in cases under pars. (b) and (c), if the organization permit is revoked or expires before a certificate of authority is granted, incorporators who have advanced money for the reasonable and authorized expenses of organization, including underwriting expenses, may be reimbursed in cash from the proceeds of shares or mutual bond or contribution note subscriptions under the organization permit, on itemized receipts audited by the commissioner. The total reimbursement shall not exceed 5 percent of the amount received from such sources. The remainder in the escrow account shall thereupon be distributed among such subscribers in proportion to their contributions, valued as of the time the contributions were made.
(b)
Violation of law. Reimbursement may be refused to any incorporator under par. (a) if the commissioner finds that in connection with the organization of the corporation the incorporator has willfully or negligently violated in a material way any provision of this chapter.
(c)
Assessable mutuals. No reimbursement may be made to any incorporator of a mutual under par. (a) until all advanced premiums collected under s. 611.19 (4) (c) have been repaid in full.
(4)
End of legal existence. The legal existence of the corporation shall terminate upon completion of the payments under sub. (3).
History:  1971 c. 260, 307; 1991 a. 316.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.18 - Incorporators' liability and organization expenses.

611.18
Incorporators' liability and organization expenses.
(1)
Liability. The incorporators shall be jointly and severally liable for all organizational and promotional expenses and liabilities incurred prior to the issuance of the certificate of authority.
(2)
Reimbursement and compensation.
(a)
Stock corporations.
1.
`Expenses.' After issuance of the certificate of authority, incorporators of a stock corporation who have advanced money or incurred obligations for the reasonable and authorized expenses of organization including underwriting may be reimbursed in cash from the proceeds of shares subscribed to under the organization permit, on itemized receipts audited by the commissioner. Their total reimbursement may not exceed 10 percent of the amount received from subscribers.
2.
`Personal services.' Incorporators may be compensated for the reasonable value of personal services actually performed by the issuance to them of shares not exceeding in value in the aggregate 10 percent of the amount received from the subscription for shares under the organization permit.
3.
`Aggregate expenses and remuneration.' The aggregate payment under subds. 1. and 2. may not exceed 15 percent of the amount received for shares subscribed to under the organization permit, including the shares purchased under s. 611.32 (1) or (2), and shall conform to the statement made under s. 611.13 (2) (e).
(b)
Mutuals. After issuance of the certificate of authority, incorporators of a mutual who have advanced money or incurred obligations for the reasonable and authorized expenses of organization may be reimbursed in cash from the proceeds of subscriptions for mutual bonds and contribution notes, on itemized receipts audited by the commissioner. The total reimbursement may not exceed 15 percent of the amount received for the bonds and notes.
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.20 - Certificate of authority.

611.20
Certificate of authority.
(1)
Application. The corporation may apply for a certificate of authority at any time prior to the expiration of its organization permit. The application shall include a statement by a principal officer of any material changes that have already taken place or are likely to take place in the facts on which the issuance of the organization permit was based, and if any material changes are proposed in the business plan, the additional information about such changes that would be required if an organization permit were then being applied for.
(2)
Issuance.
(a)
The commissioner shall issue a certificate of authority, if he or she finds:
1.
That cash or property authorized under s. 611.14 (1) (a) has been received sufficient to satisfy the requirements of s. 611.19;
2.
That there is no basis for revoking the organization permit under s. 611.16 (2); and
3.
That all other applicable requirements of the law have been met.
(b)
The certificate of authority shall specify any limits placed on the insurance business that may be carried on by the corporation and may, within the powers given the commissioner by law, specify limits on its methods of operation.
(3)
Effect. Upon the issuance of the certificate:
(a)
The board shall authorize and direct the issuance of shares, bonds or notes subscribed to under the organization permit, and of insurance policies upon qualifying applications made under the organization permit; and
(b)
The commissioner shall authorize the release to the corporation of all funds held in escrow under s. 611.15.
(4)
Alteration of certificate of authority.
(a)
Upon application. A 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. 611.13 (2) as the commissioner reasonably requires. The commissioner shall issue the new certificate as requested if he or she finds:
1.
That the corporation's capital and surplus are adequate to support the proposed operations under the new certificate; and
2.
That the proposed business would not be contrary to the law or to the interests of insureds or the public.
(b)
By commissioner. If the commissioner issues a summary order under s. 645.21 against a corporation, he or she may also revoke the corporation's certificate and issue a new one with the limits the commissioner deems necessary.
(5)
Domestic surplus lines insurance. The commissioner may issue to a domestic insurer a certificate of authority to do business in this state as a domestic surplus lines insurer, as defined in s. 618.40 (3m).
History:  1971 c. 260; 1979 c. 102 ss. 96, 236 (5); 1989 a. 303; 2017 a. 16.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.22 - Accelerated organization procedure.

611.22
Accelerated organization procedure.
(1)
General requirements. The incorporators may apply for determination of the minimum capital or minimum permanent surplus under s. 611.19 and for a certificate of authority without first obtaining an organization permit if:
(a)
Their number is not more than 15; and
(b)
They purchase for their own accounts all the shares proposed to be issued in the case of a stock corporation, or in the case of a mutual they supply all the minimum permanent surplus and initial expendable surplus by contribution notes or otherwise.
(2)
Contents of application. The application for a certificate of authority shall be accompanied by proof that the purchase price for the shares or the proceeds of contribution notes have been deposited on behalf of the proposed corporation or if other than money are held in trust for the proposed corporation and by so much of the information in s. 611.13 (2) as the commissioner reasonably requires.
(3)
Issuance of certificates of incorporation and authority. The commissioner shall issue both a certificate of incorporation and a certificate of authority if:
(a)
The commissioner finds that all requirements of law have been met;
(b)
The commissioner is satisfied that all natural persons who are incorporators, the directors and principal officers of corporate incorporators, and the proposed directors and officers of the corporation being formed are trustworthy and competent and collectively have the competence and experience to engage in the particular insurance business proposed; and
(c)
The commissioner is satisfied that the business plan is consistent with the interests of the corporation's potential insureds and of the public.
(4)
Legal existence. Upon the issuance of the certificate of incorporation the legal existence of the corporation shall begin, the articles and bylaws shall become effective and the proposed directors and officers shall take office. The certificate shall be conclusive evidence of compliance with this section, except in a proceeding by the state against the corporation.
History:  1971 c. 260; 1991 a. 316.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.223 - Transfer of an insurer's place of domicile.

611.223
Transfer of an insurer's place of domicile.
(1)
Foreign insurer becomes a domestic insurer.
(a)
A foreign insurer which desires to become a domestic insurer may submit to the commissioner an application for a certificate of incorporation and a certificate of authority. The application shall comply with par. (b) and shall include or have attached any other relevant documents or information that the commissioner reasonably requires. Upon review of the application, the commissioner may issue a certificate of incorporation and certificate of authority if the commissioner determines that all of the following are satisfied:
1.
The applicant is in compliance with the provisions of chs. 600 to 655 that apply to domestic insurers.
2.
The directors and officers of the applicant are trustworthy and competent and collectively have the competence and experience to engage in the particular insurance business proposed.
3.
The proposed business is consistent with the interests of insureds and the public.
(b)
The commissioner shall by rule specify the required contents and form of an application submitted under par. (a). In determining the required contents, the commissioner shall consider the information and documents which will permit the commissioner to determine whether the requirements of par. (a) 1. to 3. are satisfied.
(c)
The commissioner may by order relax one or more of the requirements of this subsection for a foreign insurer which desires to become a domestic insurer if, after a hearing conducted in accordance with ch. 227, the commissioner determines that the requirements are unnecessary to protect policyholders and the public because of the developed status of the foreign insurer.
(2)
Domestic insurer becomes a foreign insurer. Upon approval by the commissioner, a domestic insurer may transfer its place of domicile to any other state in which it is admitted. As a condition of approving the transfer of domicile, the commissioner may require a special deposit, reinsurance or other protective measures by the insurer. After or simultaneous with the transfer of domicile, the insurer may apply under ch. 618 for authority to do business in this state as a foreign insurer.
(3)
Effect on existing contracts. The transfer of an insurer's place of domicile under sub. (1) or (2) does not affect the obligations of the insurer under its existing insurance contracts or any other existing contracts.
History:  1987 a. 247.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.23 - Municipal insurance mutuals.

611.23
Municipal insurance mutuals.
(1)
Applicable rules. On application by the organizers of a municipal insurance mutual under s. 611.11 (4), the commissioner may by order, after a hearing, relax any requirements of this chapter to facilitate the formation, financing and governance of the mutual. In the same order, the commissioner shall impose substitute requirements designed to implement the purposes of s. 611.02 (2) as elaborated in this chapter.
(2)
Regulation. Except as provided in sub. (3), the provisions of chs. 600 to 646 that apply to other mutuals organized or operating under this chapter apply also to municipal insurance mutuals.
(3)
Inapplicable provisions. Chapters 604 to 607, 612 to 619, 625 and 646 do not apply to such mutuals. The commissioner may by order, after a hearing, exempt such a mutual from any other provisions on a finding that they are unnecessary for the protection of the interests of the municipalities and their citizens.
History:  1977 c. 346; 1979 c. 89; 1981 c. 20 s. 2202 (26) (c); 1995 a. 197.
NOTE:  Chapter 346, laws of 1977, which created this section, has an extensive note explaining the section.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.25 - Special provisions for separate accounts for variable contracts.

611.25
Special provisions for separate accounts for variable contracts.
(1)
Terminology. Separate accounts under this section form a special category of segregated accounts and may be designated by any appropriate name the corporation wishes to use.
(2)
Formation. With the approval of the commissioner, any corporation may establish one or more separate accounts and allocate to them any amounts paid or remitted to or held by the corporation under designated contracts or classes of contracts which amounts are to be applied to provide benefits payable partly or wholly in variable dollar amounts. Such amounts may also be applied to provide benefits in fixed and guaranteed dollar amounts and other incidental benefits.
(3)
Special rights and procedures. To the extent necessary to comply with the federal investment company act of 1940, as now or later amended, or any rules issued thereunder, the corporation may adopt special procedures for the conduct of the business and affairs of a separate account, and may, for persons having beneficial interests therein, provide special voting and other rights, including special rights and procedures relating to investment policy, investment advisory services, selection of certified public accountants, and selection of a committee, the members of which need not be otherwise affiliated with the corporation, to manage the business and affairs of the account.
(4)
Applicable general provisions. Separate accounts under this section are subject to s. 611.24 (3).
History:  1971 c. 260.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.28 - Changes in business plan.

611.28
Changes in business plan.
(1)
Development stage. Within 5 years after the initial issuance of a certificate of authority no substantial change, alteration or amendment may be made in the business plan and the insurer may not substantially deviate from it unless notice of the proposed change is filed with the commissioner 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. The commissioner may, within the 30-day period or its extension, prohibit the proposed action if it is contrary to law or to the interests of insureds, creditors or the public in this state.
(2)
Continuing control. The commissioner may by rule or order specify portions of the business plan to which the requirement of sub. (1) shall apply even after the initial 5-year period, if he or she finds after a hearing that it is required to protect the interests of insureds, creditors or the public in this state.
History:  1971 c. 260; 1979 c. 102 s. 236 (5); 1991 a. 316.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.29 - Amendment of articles.

611.29
Amendment of articles.
(1)
Right to amend articles. A stock corporation may amend its articles under ss. 180.0726, 180.1001 to 180.1007, 180.1706, 180.1707 and 180.1708 (4) and a mutual may amend its articles under ss. 181.1001, 181.1002 (1), 181.1003, 181.1005 and 181.1006, except that papers required by those sections to be filed with the department of financial institutions shall instead be filed with the commissioner. Subject to sub. (3), the stock corporation or mutual may amend its articles in any desired respect including substantial changes of its original purposes. No amendment may be made contrary to s. 611.12 (1) to (3).
(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 shareholders or policyholders for approval, or if such approval is not required, at least 30 days before the effective date.
(3)
Articles of amendment; mutuals. In addition to the requirements of s. 181.1005, the articles of amendment of a mutual shall, if mail voting is used, state the number of policyholders voting by mail and the number of such policyholders voting for and against the amendment.
(4)
Filing of articles of amendment. No amendment may become effective until the articles of amendment have been filed with the commissioner.
(5)
Effect of amendment of articles. Section 180.1009 applies to stock corporations and s. 181.1008 applies to mutuals.
History:  1971 c. 260; 1989 a. 303; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.32 - Promoter stock.

611.32
Promoter stock.
(1)
Mandatory purchase. During the period of effectiveness of the organization permit the incorporators, directors, and principal officers of a stock corporation shall among themselves subscribe and pay, at the public offering price, at least $100,000 in cash or in property of equivalent value approved by the commissioner, for shares offered by the corporation under the organization permit.
(2)
Restrictions on issuance.
(a)
No person may subscribe for promoter stock on terms more favorable than those on which subscriptions are being solicited from the general public.
(b)
Except under this section and s. 611.18 (2) (a) 2., and except for stock dividends, no promoter stock may be issued for 5 years following the initial issuance of the certificate of authority, without the approval of the commissioner which may be granted by the commissioner only if he or she finds that:
1.
The corporation is in need of additional capital; and
2.
The value proposed to be given for the stock is fair to existing shareholders and has a reasonable relation to the current value of the outstanding shares.
(c)
This subsection shall not affect the exercise of preemptive rights.
(3)
Restrictions on transfer.
(a)
Deposit in escrow. Shares of promoter stock and any stock received thereon as the result of a stock dividend, stock split or exercise of preemptive rights shall be deposited in escrow with a depository satisfactory to the commissioner under an agreement providing that the shares may not be transferred without the approval of the commissioner.
(b)
Release from escrow. If the corporation issues any life insurance policies, any shares subject to this section shall be released from escrow 5 years after issuance of the certificate of authority. In other cases, the shares shall be released from escrow 3 years after issuance of the certificate of authority.
(4)
Approval.
(a)
Definition. In this subsection, “earned surplus" means the balance of the net profits, income, gains and losses of a corporation from the date of incorporation.
(b)
Conditions. Approval of the transfer of promoter stock under sub. (3) (a):
1.
Shall be granted upon request if the corporation has made an addition to earned surplus in each of the 2 immediately preceding years of at least 6 percent of the capital raised by the sale of shares under the organization permit; and
2.
May be granted upon a showing of hardship by the shareholder or the shareholder's estate or legatee, if the release from escrow of the shares or a portion thereof would not, in the commissioner's opinion, endanger the interests of insureds or the public.
(5)
Options to purchase stock. For 3 years after the issuance of the certificate of authority, an option to purchase stock may be issued only pursuant to a plan approved by the commissioner.
History:  1971 c. 260; 1979 c. 102 s. 236 (5); 1989 a. 303; 1991 a. 316.
2023 Wisconsin Statutes & Annotations › Chapter 611 - Domestic stock and mutual insurance corporations. › 611.34 - Corporate repurchase of shares.

611.34
Corporate repurchase of shares.
No stock corporation may repurchase any of its own shares within 5 years after initial issuance of the certificate of authority, except pursuant to a plan for the repurchase which has been approved by the commissioner. After 5 years a stock corporation may repurchase its own shares under ss. 180.0631, 180.0640, and 180.1708 (2), but within 10 days after the end of any month in which it purchases more than one percent of any class of its outstanding shares the corporation shall report the price and the names of the registered shareholders from whom the shares are acquired and of any other persons beneficially interested, so far as the latter are known to the corporation. The corporation shall make a like report within 10 days after the end of any 3-month period in which it purchases more than 2 percent of any class of its outstanding shares or within 10 days after the end of any 12-month period in which it purchases more than 5 percent of any class of its outstanding shares.
History:  1971 c. 260; 1989 a. 303; 2009 a. 177.