reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.72 - Distribution of assets.

645.72
Distribution of assets.
(1)
Payments to creditors. Subject to ch. 646 and under the direction of the court, the liquidator shall pay dividends as promptly as possible to security funds under sub. (2) and to other creditors in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquidated and undetermined claims, including 3rd-party claims. Distribution of assets in kind may be made at valuations set by agreement between the liquidator and the creditor and approved by the court.
(2)
Payment of dividends to security funds. The liquidator shall pay dividends to security funds under sub. (1) to satisfy their subrogation claims under s. 646.33 or similar laws of other states, if the claims have been filed pursuant to rules established under s. 645.61 (4). The total dividends to security funds paid under this subsection may not exceed the total of the claims properly made by the funds under s. 645.61 (4). The liquidator shall pay dividends as frequently as practicable and in sums as large as possible without sacrificing of asset values by untimely disposition or inequitable allocation of available assets among the subrogated funds. The liquidator may protect against inequitable allocations by making payments to funds subject to binding agreements by the funds to repay any portions of the dividends found later to be in excess of an equitable allocation. If assets are available, the liquidator may also lend to security funds, subject to court approval.
(3)
Reports to the court. The liquidator shall report to the court within 120 days after the issuance of the liquidation order under s. 645.42, and every 3 months thereafter, on the status of the assets and the payment of dividends and loans under sub. (2). The court may order the liquidator to pay dividends to security funds under sub. (2) more expeditiously to minimize the need for assessments under s. 646.51.
(4)
Excess assets.
(a)
Upon liquidation of a domestic mutual insurance company, any assets held in excess of its liabilities and the amounts which may be paid to its members as provided under sub. (4) (b) shall be paid into the state treasury to the credit of the common school fund.
(b)
The maximum amount payable upon liquidation to any member for and on account of his or her membership in a domestic mutual insurance company, in addition to the insurance benefits promised in the policy, shall be the total of all premium payments made by the member with interest at the legal rate compounded annually.
History:  1979 c. 102 s. 236 (13); 1979 c. 109 ss. 9 to 11, 16; 2005 a. 253.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.73 - Unclaimed and withheld funds.

645.73
Unclaimed and withheld funds.
(1)
Unclaimed funds. The liquidator, as provided in ch. 177, shall report and deliver to the secretary of revenue all unclaimed funds subject to distribution remaining in the liquidator's hands when he or she is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholder, member or other person who is unknown or cannot be found or who is under disability with no person legally competent to receive a distributive share.
(2)
Withheld funds. All funds withheld under s. 645.64 and not distributed shall upon discharge of the liquidator be deposited with the secretary of revenue and paid by the secretary in accordance with s. 645.64. Any sums remaining which under s. 645.64 would revert to the undistributed assets of the insurer shall be transferred to the secretary of revenue and become the property of the state under sub. (1), unless the commissioner petitions the court to reopen the liquidation under s. 645.75.
History:  1979 c. 102 ss. 220, 236 (23); 1983 a. 408; 2013 a. 20.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.74 - Termination of proceedings.

645.74
Termination of proceedings.
(1)
Liquidator's application. When all assets justifying the expense of collection and distribution have been collected and distributed under this chapter, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders deemed appropriate, including an order to transfer to the state treasury for the common school fund any remaining funds that are uneconomic to distribute.
(2)
Application by others. Any other person may apply to the court at any time for an order under sub. (1). If the application is denied, the applicant shall pay the costs and expenses of the liquidator in resisting the application, including a reasonable attorney's fee.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.75 - Reopening liquidation.

645.75
Reopening liquidation.
After the liquidation proceeding has been terminated and the liquidator discharged, the commissioner or other interested party may at any time petition the court to reopen the proceedings for good cause, including the discovery of additional assets. If the court is satisfied that there is justification for reopening, it shall so order.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.76 - Disposition of records during and after termination of liquidation.

645.76
Disposition of records during and after termination of liquidation.
Records of any insurer in the process of liquidation or completely liquidated under this chapter shall be disposed of by the public records board in the same manner as state records under s. 16.61.
History:  1979 c. 93; 1981 c. 350 s. 13; 1985 a. 180 s. 30m; 1987 a. 147 s. 25; 1995 a. 27.
Legislative Council Note, 1979: This section makes disposition of the records of insurers subject to liquidation under this chapter subject to the procedures established in s. 16.61, a system which did not exist at the time the former s. 645.76 was created. [Bill 20-S]
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.77 - External audit of receiver's books.

645.77
External audit of receiver's books.
The court in which the proceeding is pending may, as it deems desirable, cause audits to be made of the books of the commissioner relating to any receivership established under this chapter, and a report of each audit shall be filed with the commissioner and with the court. The books, records and other documents of the receivership shall be made available to the auditor at any time without notice. The expense of each audit shall be considered a cost of administration of the receivership.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.81 - Conservation of property of foreign or alien insurers found in this state.

645.81
Conservation of property of foreign or alien insurers found in this state.
(1)
Grounds for petition. If a domiciliary liquidator has not been appointed, the commissioner may apply to the circuit court for Dane County by verified petition for an order directing him or her to conserve the property of an alien insurer not domiciled in this state or a foreign insurer on any one or more of the following grounds:
(a)
Any of the grounds in s. 645.31;
(b)
Any of the grounds in s. 645.41;
(c)
That any of its property has been sequestered by official action in its domiciliary state, or in any other state;
(d)
That enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent;
(e)
That its certificate of authority to do business in this state has been revoked or that none was ever issued, and that there are residents of this state with outstanding claims or outstanding policies.
(2)
Terms of order. The court may issue the order in whatever terms it considers appropriate. The recording of the order with any register of deeds in this state imparts the same notice as a deed, bill of sale or other evidence of title recorded with that register of deeds.
(3)
Transformation to liquidation or ancillary receivership. The conservator may at any time petition for and the court may grant an order under s. 645.82 to liquidate the assets of a foreign or alien insurer under conservation or, if appropriate, for an order under s. 645.84 to be appointed ancillary receiver.
(4)
Order to return to company. The conservator may at any time petition the court for an order terminating conservation of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also make such finding and issue such order at any time upon its own motion.
History:  1979 c. 102 s. 236 (20); 1993 a. 301; 1995 a. 225.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.82 - Liquidation of property of foreign or alien insurers found in this state.

645.82
Liquidation of property of foreign or alien insurers found in this state.
(1)
Grounds for petition. If no domiciliary receiver has been appointed, the commissioner may apply to the circuit court for Dane County by verified petition for an order directing the commissioner to liquidate the assets found in this state of a foreign insurer or an alien insurer not domiciled in this state, on any of the following grounds:
(a)
Any of the grounds in s. 645.31.
(b)
Any of the grounds in s. 645.41.
(c)
Any of the grounds in s. 645.81.
(2)
Terms of order. If it appears to the court that the best interests of creditors, policyholders and the public so require, the court may issue an order to liquidate in whatever terms it considers appropriate. The recording of the order with any register of deeds in this state imparts the same notice as a deed, bill of sale or other evidence of title filed or recorded with that register of deeds.
(3)
Conversion to ancillary proceeding. If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section, the liquidator under this section shall thereafter act as ancillary receiver under s. 645.84. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation is proceeding under this section, the liquidator under this section may petition the court for permission to act as ancillary receiver under s. 645.84.
(4)
Federal receivership. On the same grounds as are specified in sub. (1), the commissioner may petition any appropriate federal district court to be appointed receiver to liquidate that portion of the insurer's assets and business over which the court will exercise jurisdiction, or any lesser part thereof that the commissioner deems desirable for the protection of the policyholders and creditors in this state. The commissioner may accept appointment as federal receiver if another person files a petition.
History:  1979 c. 102 s. 236 (21); 1993 a. 301.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.83 - Foreign domiciliary receivers in other states.

645.83
Foreign domiciliary receivers in other states.
(1)
Property rights and title: reciprocal state. The domiciliary liquidator of an insurer domiciled in a reciprocal state shall be vested by operation of law with the title to all of the property, contracts and rights of action, and all of the books, accounts and other records of the insurer located in this state. The date of vesting shall be the date of the filing of the petition, if that date is specified by the domiciliary law for the vesting of property in the domiciliary state; otherwise, the date of vesting shall be the date of entry of the order directing possession to be taken. The domiciliary liquidator shall have the immediate right to recover balances due from agents and to obtain possession of the books, accounts and other records of the insurer located in this state. The domiciliary liquidator may also recover the other assets of the insurer located in this state, subject to s. 645.84 (2).
(2)
Property rights and title: state not a reciprocal state. If a domiciliary liquidator is appointed for an insurer not domiciled in a reciprocal state, the commissioner of this state shall be vested by operation of law with the title to all of the property, contracts and rights of action, and all of the books, accounts and other records of the insurer located in this state, at the same time that the domiciliary liquidator is vested with title in the domicile. The commissioner of this state may petition for a conservation or liquidation order under s. 645.81 or 645.82, or for an ancillary receivership under s. 645.84, or after approval by the circuit court for Dane County may transfer title to the domiciliary liquidator, as the interests of justice and the equitable distribution of the assets require.
(3)
Filing claims. Claimants residing in this state may file claims with the liquidator or ancillary receiver, if any, in this state or with the domiciliary liquidator, if the domiciliary law permits. The claims must be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceedings.
History:  1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.84 - Ancillary formal proceedings.

645.84
Ancillary formal proceedings.
(1)
Appointment of ancillary receiver in this state. If a domiciliary liquidator has been appointed for an insurer not domiciled in this state, the commissioner shall file a petition with the circuit court for Dane County requesting appointment as ancillary receiver in this state:
(a)
If the commissioner finds that there are sufficient assets of the insurer located in this state to justify the appointment of an ancillary receiver;
(b)
If 10 or more persons resident in this state having claims against the insurer file a petition with the commissioner requesting appointment of an ancillary receiver; or
(c)
If the protection of creditors or policyholders in this state so requires.
(2)
Terms of order. The court may issue an order appointing an ancillary receiver in whatever terms it considers appropriate. The recording of the order with any register of deeds in this state imparts the same notice as a deed, bill of sale or other evidence of title filed or recorded with that register of deeds.
(3)
Property rights and title: ancillary receivers in this state. When a domiciliary liquidator has been appointed in a reciprocal state, the ancillary receiver appointed in this state under sub. (1) shall have the sole right to recover all the assets of the insurer in this state not already recovered by the domiciliary liquidator, except that the domiciliary liquidator shall be entitled to and have the sole right to recover balances due from agents and the books, accounts and other records of the insurer. The ancillary receiver shall have the right to recover balances due from agents and books, accounts and other records of the insurer, if such action is necessary to protect the assets because of inaction by the domiciliary liquidator. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities those special deposit claims and secured claims which are proved and allowed in the ancillary proceedings in this state, and shall pay the necessary expenses of the proceedings. The ancillary receiver shall promptly transfer all remaining assets to the domiciliary liquidator. Subject to this section, the ancillary receiver and the ancillary receiver's deputies shall have the same powers and be subject to the same duties with respect to the administration of assets as a liquidator of an insurer domiciled in this state.
(4)
Property rights and title: foreign ancillary receivers. When a domiciliary liquidator has been appointed in this state, ancillary receivers appointed in reciprocal states shall have, as to assets and books, accounts and other records located in their respective states, corresponding rights and powers to those prescribed in sub. (3) for ancillary receivers appointed in this state.
History:  1979 c. 102 ss. 222, 236 (6); 1993 a. 301.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.85 - Ancillary summary proceedings.

645.85
Ancillary summary proceedings.
The commissioner in his or her sole discretion may institute proceedings under ss. 645.21 to 645.23 at the request of the commissioner or other appropriate official of the domiciliary state of any nondomestic insurer having property located in this state.
History:  1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.86 - Claims of nonresidents against insurers domiciled in this state.

645.86
Claims of nonresidents against insurers domiciled in this state.
(1)
Filing claims. In a liquidation proceeding begun in this state against an insurer domiciled in this state, claimants residing in foreign countries or in states not reciprocal states must file claims in this state, and claimants residing in reciprocal states may file claims either with the ancillary receivers, if any, in their respective states, or with the domiciliary liquidator. Claims must be filed on or before the last dates fixed for the filing of claims in the domiciliary liquidation proceeding.
(2)
Proving claims. Claims belonging to claimants residing in reciprocal states may be proved either in the liquidation proceeding in this state as provided in this chapter, or in ancillary proceedings, if any, in the reciprocal states. If notice of the claim and opportunity to appear and be heard is afforded the domiciliary liquidator of this state as provided in s. 645.87 with respect to ancillary proceedings in this state, the final allowance of claims by the courts in ancillary proceedings in reciprocal states shall be conclusive as to amount and as to priority against special deposits or other security located in the ancillary states, but shall not be conclusive with respect to priorities against general assets under s. 645.68.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.87 - Claims of residents against insurers domiciled in reciprocal states.

645.87
Claims of residents against insurers domiciled in reciprocal states.
(1)
Filing claims. In a liquidation proceeding in a reciprocal state against an insurer domiciled in that state, claimants against the insurer who reside within this state may file claims either with the ancillary receiver, if any, in this state, or with the domiciliary liquidator. Claims must be filed on or before the last dates fixed for the filing of claims in the domiciliary liquidation proceeding.
(2)
Proving claims. Claims belonging to claimants residing in this state may be proved either in the domiciliary state under the law of that state or in ancillary proceedings, if any, in this state. If a claimant elects to prove his or her claim in this state, the claimant shall file the claim with the court in the manner provided in ss. 645.61 and 645.62. The ancillary receiver shall make his or her recommendation to the court as under s. 645.71. The ancillary receiver also shall arrange a date for hearing if necessary under s. 645.65 and shall give notice to the liquidator in the domiciliary state, either by registered mail or by personal service at least 40 days prior to the date set for hearing. If the domiciliary liquidator, within 30 days after the giving of such notice, gives notice in writing to the ancillary receiver and to the claimant, either by registered mail or by personal service, of his or her intention to contest the claim, the domiciliary liquidator shall be entitled to appear or to be represented in any proceeding in this state involving the adjudication of the claim. The final allowance of the claim by the courts of this state shall be accepted as conclusive as to amount and as to priority against special deposits or other security located in this state.
History:  1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.88 - Attachment, garnishment and levy of execution.

645.88
Attachment, garnishment and levy of execution.
During the pendency in this or any other state of a liquidation proceeding, whether called by that name or not, no action or proceeding that is in the nature of an attachment, garnishment or levy of execution or that would interfere with proceedings under this chapter or ch. 646 shall be commenced or maintained in this state or elsewhere against the delinquent insurer or its assets.
History:  1985 a. 216.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.89 - Interstate priorities.

645.89
Interstate priorities.
(1)
Priorities. In a liquidation proceeding in this state involving one or more reciprocal states, the order of distribution of the domiciliary state shall control as to all claims of residents of this and reciprocal states. All claims of residents of reciprocal states shall be given equal priority of payment from general assets regardless of where such assets are located.
(2)
Priority of special deposit claims. The owners of special deposit claims against an insurer for which a liquidator is appointed in this or any other state shall be given priority against the special deposits in accordance with the statutes governing the creation and maintenance of the deposits. If there is a deficiency in any deposit so that the claims secured by it are not fully discharged from it, the claimants may claim against a security fund or share in the general assets, but the sharing shall be deferred until general creditors having the same priority, and also claimants against other special deposits having the same priority who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit.
(3)
Priority of secured claims. The owner of a secured claim against an insurer for which a liquidator has been appointed in this or any other state may surrender the security for the claim and file the claim as a general creditor, or the claim may be discharged by resort to the security in accordance with s. 645.67, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer or the appropriate security fund on the same basis as claims of unsecured creditors having the same priority.
History:  1979 c. 102, 109.
2023 Wisconsin Statutes & Annotations › Chapter 645 - Insurers rehabilitation and liquidation. › 645.90 - Subordination of claims for noncooperation.

645.90
Subordination of claims for noncooperation.
If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in this state any assets within his or her control other than special deposits, diminished only by the expenses of the ancillary receivership, if any, the claims filed in the ancillary receivership or with a security fund in that jurisdiction, other than special deposit claims or secured claims, shall be placed in the class of claims under s. 645.68 (8).
History:  1979 c. 102 s. 236 (13); 1979 c. 109.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.03 - Definitions.

646.03
Definitions.
In this chapter, unless the context indicates otherwise:
(1)
“Board" means the board of directors of the insurance security fund created by s. 646.12.
(1m)
“Direct insurance" does not include a policy or contract of reinsurance, except for the following:
(a)
Reinsurance for which the reinsurer has issued assumption certificates under the reinsurance policy or contract.
(b)
Reinsurance ceded by an assessable town mutual company.
(2)
“Fund" means the insurance security fund created by s. 646.11.
(2m)
“Health maintenance organization" has the meaning given under s. 609.01 (2).
(2p)
“Insolvent insurer" means an insurer subject to this chapter that is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency.
(2r)
“Limited service health organization" has the meaning given in s. 609.01 (3).
(3)
“Liquidator" includes receiver or conservator.
(4)
With respect to a life or disability insurance policy or an annuity contract, “owner" or “policyholder" means the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract and properly recorded as the owner on the books of the insurer. “Owner" or “policyholder" does not include a person with only a beneficial interest in a policy or contract.
(4m)
“Retained asset account" means any mechanism in which the settlement of proceeds payable under a life insurance policy is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer, under a written supplementary contract not involving annuity benefits.
(5)
“Unallocated annuity contract" means an annuity contract or group annuity certificate that is not issued to and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under the contract or certificate.
History:  1979 c. 109, 110, 355; 1985 a. 29; 1995 a. 236; 2003 a. 261; 2009 a. 342; 2011 a. 224.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.11 - Organization and administration of fund.

646.11
Organization and administration of fund.
(1)
Organization. There is created an organization to be known as the “insurance security fund." All insurers subject to this chapter are contributors to the fund as a result of their authority to transact business in this state. The fund shall consist of all of the following:
(a)
All payments made by insurers under s. 646.51.
(b)
The earnings resulting from investments under s. 646.21 (2).
(c)
The amounts recovered under s. 645.72 (2) or a substantially similar law in the state of domicile of the insolvent insurer.
(d)
Amounts reimbursed to the fund through its subrogation and assignment rights.
(e)
Any other moneys received by the fund from time to time.
(2)
Accounts. The fund shall be composed of 6 segregated accounts, one for life insurance, one for annuities, one for disability insurance other than policies issued or coverage provided by a health maintenance organization insurer, one for health maintenance organization insurers, one for all other kinds of insurance subject to this chapter and an administrative account.
(3)
Expenses of fund. Necessary expenses of administration of the fund incurred in connection with actual liquidations or with continuation of contracts under s. 646.35 shall be charged to the appropriate account of the fund. All other expenses shall be charged to the administrative account.
(4)
Liability. No contributor to the fund, person acting on the fund's behalf, insurer representative on the board, or alternate representative designated under s. 646.12 (1) (a) 3. is personally liable for any obligations of the fund. The rights of creditors are solely against the assets of the fund.
(5)
Immunity. No cause of action of any nature may arise against and no liability may be imposed upon the fund or its agents, employees, directors, including alternate representatives designated under s. 646.12 (1) (a) 3., or contributor insurers, or the commissioner or the commissioner's agents, employees, or representatives, for any act or omission by any of them in the performance of their powers and duties under this chapter.
History:  1979 c. 109, 221; 1983 a. 120; 1985 a. 216, 332; 1989 a. 23; 2003 a. 261; 2007 a. 170.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.15 - Proceedings involving insurers.

646.15
Proceedings involving insurers.
(1)
Injunctions and orders.
(a)
If an insurer is in liquidation, the fund may apply to the circuit court for Dane County for, and the court may grant, restraining orders, temporary and permanent injunctions, and other orders considered necessary and proper to prevent any of the following:
1.
Interference with the fund or with its administrative proceedings.
2.
The institution or further prosecution of any action or proceeding involving the insurer or in which the fund is obligated to defend a party.
3.
The obtaining of a preference, judgment, garnishment or lien against the insurer or its assets.
4.
Any other threatened or contemplated action that might prejudice the rights of policyholders or the administration of the liquidation or fund proceedings.
(b)
Upon granting an application under par. (a), the court may retain jurisdiction of any further proceeding or relief, as the court considers necessary and proper, involving the insurer.
(2)
Exclusive proceedings. A court of this state does not have jurisdiction to entertain, hear or determine a proceeding or to grant relief if the proceeding or relief involves or is related to a nondomestic insurer which is in liquidation unless the court is so authorized under this chapter or ch. 645.
History:  1987 a. 325; 1999 a. 30; 2003 a. 261.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.16 - Payment of deposits made for benefit of creditors.

646.16
Payment of deposits made for benefit of creditors.
(1)
The commissioner shall promptly pay to the fund any deposit held in this state that was paid, as required by law or the commissioner, by the insolvent insurer for the benefit of creditors, including policyholders, and not turned over to the domiciliary liquidator upon the entry of a final order of liquidation of an insurer domiciled in this state or in a reciprocal state, as defined in s. 645.03 (1) (i). Of the amount paid to the fund under this subsection, the fund may retain the percentage determined by dividing the aggregate amount of policyholders' claims that are related to the insolvency and for which the fund has provided benefits under this chapter by the aggregate amount of all policyholders' claims in this state that are related to the insolvency. The fund shall remit the balance to the domiciliary liquidator.
(2)
Any amount retained by the fund under sub. (1) shall be treated as a distribution of estate assets under s. 645.72 or a similar provision of the state of domicile of the insolvent insurer. Deposits subject to this section shall not be treated as deposits as security, escrow, or other security under s. 645.03 (1) (j).
History:  2003 a. 261.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.21 - Custody and investment of assets.

646.21
Custody and investment of assets.
(1)
Custody. Except as provided in sub. (2), the board controls the assets of the fund. The board shall select regulated financial institutions in this state which receive deposits in which to establish and maintain accounts for assets needed on a current basis. If practicable, the accounts shall earn interest.
(2)
Investment of assets. The board may request that assets of the fund not needed currently be invested by the investment board under s. 25.17. If so requested, the investment board shall invest those assets in investments with maturities and liquidity appropriate to the probable needs of the fund for money to perform its duties. All income attributable to the investments shall be credited to the fund, and both income and principal shall be transferred to the fund on request of the board. Assets held by the fund shall be invested in a similar manner.
History:  1979 c. 109; 1983 a. 120; 2003 a. 261.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.32 - Appeal and review.

646.32
Appeal and review.
(1)
Appeal. A claimant whose claim is reduced or declared ineligible shall promptly be given notice of the determination and of the right to object under this section. The claimant may appeal to the board within 30 days after the mailing of the notice. The board may appoint a committee of the board or a hearing examiner to decide any such appeal. The claimant may not pursue the claim in court except as provided in sub. (2).
(2)
Review. Decisions of the board or its appointed committee or hearing examiner under sub. (1) are subject to judicial review in the circuit court for Dane County. A petition for judicial review shall be filed within 60 days of the decision.
History:  1979 c. 109; 2003 a. 261; 2009 a. 342.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.325 - Recovery of amounts paid to 3rd parties.

646.325
Recovery of amounts paid to 3rd parties.
(1)
Definition. In this section, “net worth" means the amount of an insured's total assets less the insured's total liabilities at the end of the insured's fiscal year immediately preceding the date the liquidation order was entered, as shown on the insured's audited financial statement or other substantiated financial information acceptable to the fund in its sole discretion. “Net worth" includes the consolidated net worth of all of the corporate affiliates, subsidiaries, operating divisions, holding companies, parent entities, and, if the insured is privately owned, natural persons who have an ownership interest, shown as insureds or additional insureds on the policy issued by the insurer. If the insured is a natural person, “net worth" means the insured's total assets less the insured's total liabilities on December 31 immediately preceding the date the liquidation order was entered.
(2)
Recovery from certain insureds and affiliates. Except as provided in sub. (3), the fund may recover from a person the costs and expenses incurred in administering or defending a claim against the person by a 3rd party and the amount of any claim paid on behalf of the person to a 3rd party, if all of the following conditions are satisfied:
(a)
The person on whose behalf the claim was administered, defended, or paid is any of the following:
1.
An insured whose net worth exceeds $25,000,000.
2.
An affiliate of the insurer in liquidation.
3.
A person excluded under s. 646.01 (1) (b) 18.
(b)
Adjudication of the claim resulted in no liability obligation on the person to pay the claim of the 3rd party or payment of the claim satisfied all or part of the person's liability obligations to 3rd parties.
(3)
Limitation. The total amount recovered from an insured described in sub. (2) (a) 1. plus the amount of the insured's claims that satisfy s. 646.31 (1) to (7), (9) and (9m) but are not eligible for payment under s. 646.31 (12) may not exceed 10 percent of the insured's net worth.
(4)
Costs and fees. In addition to recovery under sub. (2), the fund may recover reasonable attorney fees, disbursements, and all other actual costs expended in pursuing recovery under sub. (2), plus interest calculated at the legal rate under s. 138.04, which shall begin to accrue on all amounts not paid within 30 days after the date of the fund's written notification to the insured of the amount due.
History:  1987 a. 325; 2003 a. 261; 2009 a. 342; 2021 a. 114.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.41 - Tax exemption.

646.41
Tax exemption.
The fund is exempt from payment of all fees and taxes levied by this state or any of its subdivisions or instrumentalities, except for fees and taxes levied by virtue of employment under s. 646.12 (2) (d).
History:  1979 c. 109.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.60 - Claims by security funds.

646.60
Claims by security funds.
(1)
Recognition.
(a)
Settlements by the fund. The liquidator is bound by determinations and settlements of covered loss claims, and by payments of claims, made by the fund under this chapter.
(b)
Settlements by comparable funds. The liquidator is bound by determinations and settlements of covered loss claims, and by payments of claims, made by funds or organizations of other states that are comparable to the fund under this chapter if all of the following apply:
1.
The laws of the other states give equivalent recognition to the determinations and settlements of loss claims, and to payments of claims, made by the fund.
2.
If the same claim is reported as paid by 2 or more funds, payment shall be to the fund with a prior obligation under s. 646.31 (9).
(2)
Priorities. The subrogation claims of funds under sub. (1) for settlements of claims, including expenses in settling them, have the priority the claims would have under s. 645.68.
History:  1979 c. 109; 1999 a. 30; 2003 a. 261.
2023 Wisconsin Statutes & Annotations › Chapter 646 - Insurance security fund. › 646.61 - Disposal and transfer of assets.

646.61
Disposal and transfer of assets.
(1)
After termination of all liquidations under any account of s. 646.11 (2), remaining assets in that account shall be redistributed among those who paid assessments under rules promulgated to ensure treatment that is as equitable to the contributing insurers as is practicable. Partial distributions may be made to insurers who were assessed after all claims against the fund arising from such liquidations have been paid.
(2)
To meet the needs of the fund the fund may temporarily transfer assets from one account to another.
History:  1979 c. 109; 1983 a. 120; 2003 a. 261.
2023 Wisconsin Statutes & Annotations › Chapter 647 - Continuing care contracts. › 647.01 - Definitions.

647.01
Definitions.
In this chapter:
(2)
“Continuing care contract" means a contract entered into on or after January 1, 1985, to provide nursing services, medical services or personal care services, in addition to maintenance services, for the duration of a person's life or for a term in excess of one year, conditioned upon any of the following payments:
(a)
An entrance fee in excess of $10,000.
(b)
Providing for the transfer of at least $10,000 if the amount is expressed in dollars or 50 percent of the person's estate if the amount is expressed as a percentage of the person's estate to the service provider upon the person's death.
(3)
“Entrance fee" means an initial or deferred transfer to a provider of a sum of money or other property, made or promised to be made by a person entering into a continuing care contract, that guarantees a person services under a continuing care contract.
(4)
“Facility" means one or more places in which a provider undertakes to provide a person with nursing services, medical services or personal care services, in addition to maintenance services, under a continuing care contract.
(5)
“Maintenance services" means food, shelter and laundry services.
(6)
“Medical services" means those services pertaining to medical or dental care that are performed on behalf of patients by or at the direction of a physician licensed under ch. 448 or a dentist licensed under ch. 447.
(7)
“Nursing services" means those services pertaining to the curative, restorative and preventive aspects of nursing care that are performed by or under the supervision of a nurse licensed under ch. 441, but does not include nursing services provided only on an emergency basis.
(8)
“Personal care services" means assistance with meals, dressing, movement, bathing or other personal needs or maintenance, or other direct supervision and oversight of the physical and mental well-being of a person.
(9)
“Provider" means a person who provides services under a continuing care contract.
(10)
“Refund schedule" means a schedule of the varying amounts of an entrance fee that are refundable during specified periods of time.
(11)
“Resident" means a person who resides in a facility.
History:  1983 a. 358; 1987 a. 264; 1989 a. 187.
2023 Wisconsin Statutes & Annotations › Chapter 647 - Continuing care contracts. › 647.02 - Permits.

647.02
Permits.
(1)
No person may enter into a continuing care contract as a provider unless the person obtains a permit from the commissioner.
(2)
The commissioner shall issue a permit to each applicant who has met all requirements of law and satisfies the commissioner that its methods and practices and the character and value of its assets will adequately safeguard the interests of its residents and the public, and who submits all of the following:
(a)
An application, in the manner required by the commissioner, signed by the applicant; or, if the applicant is a corporation, by the chief executive officer of the applicant; or, if the applicant is a limited liability company, by a member or manager.
(b)
The fee required under s. 601.31.
(c)
A copy of the proposed form of the continuing care contract to be entered into with residents.
(d)
Audited financial statements for the most recent fiscal year of the applicant including an income statement, a balance sheet and accompanying notes, all prepared in accordance with generally accepted accounting principles on a basis consistent with prior years.
(e)
A copy of the applicant's schedule of entrance and other fees.
(f)
A copy of the applicant's refund schedule.
(g)
The figure to be used by the provider as the actual or projected length of a resident's stay in the facility in the formula in the contract provision required under s. 647.05 (1m) (i) and supporting information showing how the figure was determined.
(h)
A list of each administrative, civil or criminal action, order and proceeding to which the applicant or any of the applicant's directors or principal officers have been subjected during the preceding 5 years due to an alleged violation of any state or federal law, regulation or rule, if any of the following occurs:
1.
The alleged violation constitutes a felony; or
2.
The alleged violation relates to the finances of a continuing care facility, a retirement community or a nursing home in any jurisdiction.
(i)
If the applicant has acted as a provider for fewer than 5 years, a detailed history and a projection of the operating results anticipated at the end of the first 5 years of operation based on available data or, if data are unavailable, on reasonable assumptions of entrance fees and other income, operating expenses and acquisition costs.
(j)
Any other information the commissioner reasonably requires by rule.
(3)
Permits issued under this section are not transferable. If a facility is transferred to any person who seeks to act as a provider, the person shall comply with the requirements specified in sub. (2) in order to receive a permit as a provider. A permit issued under this section remains in effect until revoked, after a hearing, upon written findings of fact by the commissioner that any of the following has occurred:
(a)
The provider has violated any applicable law, rule or order.
(b)
The facility has been placed in receivership or liquidation under s. 647.06 (1).
History:  1983 a. 358; 1993 a. 112; 2007 a. 20.
2023 Wisconsin Statutes & Annotations › Chapter 647 - Continuing care contracts. › 647.03 - Powers and duties of the commissioner.

647.03
Powers and duties of the commissioner.
The commissioner may:
(1)
Promulgate rules that the commissioner finds are necessary to carry out the intent of this chapter.
(2)
Use the authority granted under s. 601.41 (4) to ensure that a provider has sufficient financial resources to meet the needs of that provider and to meet the terms of its continuing care contracts and other obligations.
History:  1983 a. 358.
2023 Wisconsin Statutes & Annotations › Chapter 647 - Continuing care contracts. › 647.05 - Continuing care contract provisions.

647.05
Continuing care contract provisions.
(1m)
A provider may not enter into a continuing care contract unless the contract:
(a)
Is coherent, written in commonly understood language, legible, appropriately divided and captioned and presented in a meaningful manner. Each provider shall submit to the commissioner a copy of the form of the continuing care contract within 30 days after any change is made in that continuing care contract.
(b)
Specifies what services are provided to the resident under the continuing care contract and what services are provided at an additional cost to the resident.
(c)
Contains information about the status of a resident's claim against the facility's assets if the facility were to be liquidated.
(d)
Includes a refund schedule.
(e)
Specifies the circumstances and consequences of termination of the contract by either the provider or the resident.
(f)
Provides that if a resident dies or the continuing care contract is terminated prior to occupancy or within the first 30 days after occupancy, the provider will refund at least the entrance fee less the cost of any reasonable refurbishing and less the cost of any care actually received by the resident that was not included in other charges by the provider.
(g)
Provides that if a resident dies or the continuing care contract is terminated after the first 30 days of occupancy, but within the first 90 days of occupancy, the provider will refund at least 90 percent of the amount computed under par. (f).
(h)
Provides that if the resident terminates the continuing care contract after the first 90 days of occupancy, the provider will refund to the resident a portion of the resident's entrance fee that is no less than the amount of refund indicated on the refund schedule that is in effect under the terms of the resident's continuing care contract.
(i)
Provides that if the provider terminates the continuing care contract after the first 90 days of occupancy for reasons other than willful violation of the continuing care contract by the resident, the provider will refund to the resident a portion of the resident's entrance fee that is no less than the amount determined by subtracting the quotient of the resident's actual length of stay divided by the actual or projected average length of stay of residents in the facility from 1.0 and multiplying the result obtained by the resident's entrance fee, as those figures are specified in the resident's continuing care contract. This subsection does not apply if the provider terminates the continuing care contract because of the death of the resident.
(2m)
Subject to s. 49.455, a continuing care contract may require that, before a resident applies for medical assistance, the resident must spend on his or her care the resources declared for purposes of admission to the facility.
History:  1983 a. 358; 2007 a. 20.
2023 Wisconsin Statutes & Annotations › Chapter 647 - Continuing care contracts. › 647.06 - Receivership or liquidation.

647.06
Receivership or liquidation.
(1)
A petition for appointment of a receiver or liquidator for a facility may be filed by a resident, a resident's guardian or the commissioner in the circuit court for the county in which the facility is located. If the court determines, after notice to the provider and a hearing, that a provider is not able to meet the terms of its continuing care contracts and other obligations, the court may appoint a receiver or liquidator and may set forth the powers, duties, compensation and liabilities of the receiver or liquidator.
(2)
Any provider who voluntarily seeks to liquidate a facility shall notify the commissioner in advance.
History:  1983 a. 358.
2023 Wisconsin Statutes & Annotations › Chapter 647 - Continuing care contracts. › 647.07 - Penalties.

647.07
Penalties.
Any provider who intentionally violates this chapter or rules promulgated under this chapter or who submits an application for a permit under s. 647.02 that intentionally contains a misstatement of fact is subject to a fine not to exceed $10,000 or imprisonment not to exceed 9 months or both.
History:  1983 a. 358.
2023 Wisconsin Statutes & Annotations › Chapter 648 - Regulation of care management organizations. › 648.01 - Definitions.

648.01
Definitions.
In this chapter:
(1)
“Care management organization" means an entity described in s. 46.284 (3m).
(2)
“Department" means the department of health services.
(3)
“Enrollee" has the meaning given in s. 46.2805 (3).
(4)
“Permittee" means a care management organization issued a permit under this chapter.
History:  2009 a. 28.