reglab/statecodes huggingface dataset:
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.12 - Articles of incorporation and bylaws.

614.12
Articles of incorporation and bylaws.
(1)
Articles. The articles of incorporation shall set forth:
(a)
The name of the corporation, which shall include the word “fraternal" or words of equivalent meaning if the corporation was organized after June 19, 1976.
(b)
The location of the principal office of the fraternal, which shall be in this state.
(c)
The purposes of the corporation, which shall include one or more of the purposes specified in s. 614.01 (1) (a) 2. b., but shall otherwise be restricted to those permitted by s. 610.21.
(d)
The classes of members and the qualifications and rights of the members of each class.
(e)
A description of the fraternal's representative form of government, conforming to s. 614.42.
(f)
The manner in which local lodges or branches may be formed and the powers they shall have, or a statement that the formation and powers of local lodges or branches shall be provided for in the bylaws.
(g)
A provision for fraternal bonds if any are to be authorized, which shall conform to s. 614.33.
(h)
A provision for amendment of the articles, which shall conform to s. 614.29.
(2)
Powers not enumerated. Section 181.0202 (2), (3) and (4) applies to fraternals.
(3)
Principal officers. Sections 181.0840 and 181.0841 apply to fraternals. The articles or bylaws shall specifically designate 3 or more offices, the holders of which shall be the principal officers of the fraternal. The principal offices shall be held by at least 3 separate natural persons. The articles of incorporation or the bylaws may provide that any one or more officers of the fraternal shall be members of the board of directors. The officers of a fraternal may be designated by such titles as may be provided in the articles of incorporation or the bylaws. Any document required or permitted by this chapter to be signed by the president, vice president, secretary or assistant secretary may be signed by such officer as may be stated in the articles of incorporation or bylaws to correspond to the officer so required or permitted to sign.
(4)
Bylaws. The bylaws shall comply with the provisions of this chapter, and a copy of the bylaws and any amendments to them shall be filed with the commissioner promptly after adoption, and notice of amendments to the bylaws shall be given promptly to members. Subject to this chapter, ss. 181.0206 and 181.1021 apply to fraternals.
History:  1975 c. 373; 1979 c. 102; 1983 a. 189 s. 329 (25); 1983 a. 215; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.13 - Organization permit and certificate of incorporation.

614.13
Organization permit and certificate of incorporation.
(1)
Section 611.13 applies to fraternals except that the word “mutual" shall be read “fraternal" and “s. 611.19" in s. 611.13 (4) shall be read “s. 614.19".
(2)
The application for a permit shall include, in addition to those things required under s. 611.13 (2), a statement of the plan for fraternal activities and for the formation of a representative government under s. 614.42.
History:  1975 c. 373.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.14 - Powers under organization permit and deposit of proceeds of subscriptions.

614.14
Powers under organization permit and deposit of proceeds of subscriptions.
Sections 611.14 (2) and 611.15 apply to fraternals, except that the word “mutual" shall be read “fraternal" and except that there are no qualifying insurance policies as referred to in s. 611.14 (2) (a).
History:  1975 c. 373.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.16 - Termination of organization permit and payment of organization expenses.

614.16
Termination of organization permit and payment of organization expenses.
Section 611.16 (1), (2), (3) (a) and (b) and (4) applies to fraternals, except that the word “mutual" shall be read “fraternal" and “s. 611.20" shall be read “s. 614.20".
History:  1975 c. 373; 1983 a. 192.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.18 - Incorporators' liability and organization expenses.

614.18
Incorporators' liability and organization expenses.
Section 611.18 (1) and (2) (b) applies to fraternals, except that the word “mutual" shall be read “fraternal".
History:  1975 c. 373.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.20 - Certificate of authority.

614.20
Certificate of authority.
Section 611.20 applies to fraternals, except that references to other sections in ch. 611 shall be read to refer to the corresponding sections in this chapter.
History:  1975 c. 373; 1981 c. 390 s. 252.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.24 - Segregated accounts, variable benefits and subsidiaries.

614.24
Segregated accounts, variable benefits and subsidiaries.
(1)
General. Sections 611.24 to 611.26 apply to fraternals.
(1m)
Variable benefits.
(a)
Exemption to obtain federal approval. The commissioner shall issue a waiver exempting a policy, certificate of insurance or contract issued by a fraternal from ss. 614.19 (3) and 632.93 (2), as provided in par. (b), if all of the following conditions are satisfied:
1.
The policy, certificate of insurance or contract provides life insurance or annuity benefits in variable amounts.
2.
The fraternal submits to the commissioner written evidence that the federal securities and exchange commission will not approve the policy, certificate of insurance or contract unless it is exempt from all or part of the requirements of ss. 614.19 (3) and 632.93 (2).
(b)
Extent of exemption. A waiver issued under par. (a) shall exempt a policy, certificate of insurance or contract from ss. 614.19 (3) and 632.93 (2) only to the extent necessary to obtain the federal security exchange commission's approval of the policy, certificate of insurance or contract.
(2)
Special affiliates.
(a)
Local lodges. A local lodge may incorporate under ch. 181 or the corresponding law of the state where it is located, to carry out the noninsurance activities of the local lodge.
(b)
Institutions for carrying out fraternal activities. Corporations may be formed under ch. 181 to implement s. 614.82 (2).
History:  1975 c. 373; 1987 a. 361.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.29 - Amendment of articles of incorporation.

614.29
Amendment of articles of incorporation.
(1)
Right to amend articles. The articles of a fraternal may provide for amendment by the supreme governing body or by the board of directors, and may provide also for amendment by the members by referendum. If amendment is by referendum, a majority of those members who vote must vote affirmatively. Votes cast within 60 days from the date of mailing of the ballots by the fraternal shall be counted. The timeliness of a vote is determined by the date of its mailing as proved by its postmark or other suitable evidence.
(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 for approval to the members or to the supreme governing body, or if neither is required, at least 30 days before its effective date.
(3)
Filing of articles of amendment. No amendment is effective until the articles of amendment are filed with the commissioner, together with a statement of the results of the voting on the amendment.
(4)
Publication to members. Within 4 months after the filing of the articles of amendment with the commissioner, they shall be furnished to all members either by mail or under s. 614.41 (1).
History:  1975 c. 373; 1979 c. 102; 2009 a. 342.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.41 - Communications to members.

614.41
Communications to members.
(1)
Official publications. A fraternal may provide in its laws for an official publication in which any notice, report, or statement required by law to be given to members, including notice of election, may be published. It shall be printed conspicuously in the publication.
(2)
Copies to commissioner. The commissioner may by rule prescribe that copies of specified classes of communications published generally to members, including the official publication, shall be communicated to the commissioner at the same time they are sent to the members.
(3)
Duplicate publications. If the records of a fraternal show that 2 or more members have the same mailing address, an official publication mailed to one member is deemed to be mailed to all members at the same address unless a member requests a separate copy.
History:  1975 c. 373, 421.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.42 - Representative form of government.

614.42
Representative form of government.
(1)
Supreme governing body. The fraternal shall have a supreme governing body consisting either of:
(a)
Board of directors. A board with some directors elected directly by the members or by their representatives in intermediate assemblies under sub. (2), and other directors prescribed in the fraternal's laws. The elected directors shall constitute a majority in number and not less than the number of votes required to amend those articles or bylaws of the fraternal that can be amended without consent of the members. The board shall meet at least quarterly to conduct the business of the fraternal. The elected directors shall be elected on a plan that ensures equal weight to each fraternal member's vote. Voting may be conducted by mail, by electronic means, or by any other method or combination of methods approved by the board and prescribed in the fraternal's bylaws.
(b)
Assembly. Delegates elected directly by the members or at intermediate assemblies or conventions of members or their representatives, together with other delegates prescribed in the fraternal's laws. The elected delegates shall constitute a majority in number and shall not have less than two-thirds of the votes and not less than the number of votes required to amend the articles or bylaws that can be amended without consent of the members. The assembly, whatever designated, shall meet at least once every 4 years and shall elect a board of directors to conduct the business of the fraternal between meetings of the assembly. The delegates making up the supreme governing body shall be elected on a plan that ensures equal weight to each fraternal member's vote.
(2)
Intermediate assemblies. The laws of a fraternal may provide that delegates to intermediate assemblies may represent geographical districts or lodges or represent the members in defined classes determined on a reasonable basis and that the vote of a representative to an intermediate assembly shall be treated as the vote of the members represented.
(3)
Voting procedure. No votes may be cast by proxy.
History:  1975 c. 373, 421; 2009 a. 342.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.43 - Annual report to fraternal members.

614.43
Annual report to fraternal members.
Every domestic fraternal shall send to each member having insurance or publish in the official publication under s. 614.41 (1) an annual report which shall contain basic financial and operating data, information about important business and corporate developments and such other information as the fraternal wishes to include or as the commissioner by rule requires it to include in order to keep members adequately informed.
History:  1975 c. 373; 1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.51 - Board of directors.

614.51
Board of directors.
(1)
General. Sections 181.0801 (1) and (2) and 181.0802 apply to fraternals, except that the supreme governing body may act as the board of directors if it meets at least quarterly. Section 611.51 (2) to (9) applies to fraternals, except that the word “mutual" shall be read “fraternal" and the references to other sections of ch. 611 shall be to the corresponding sections of this chapter.
(2)
Terms of directors and officers. The terms of directors and officers may not exceed 4 years.
History:  1975 c. 373; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.53 - Removal of directors and officers and filling of vacancies.

614.53
Removal of directors and officers and filling of vacancies.
A director may be removed from office for cause by an affirmative vote of a majority of the full board at a meeting of the board called for that purpose or may be removed under ss. 181.0843 (2) and 181.0844. Any vacancy occurring in the board, including a vacancy created by an increase in the number of directors, may be filled until the next succeeding regular election by the affirmative vote of a majority of the directors then in office, although less than a quorum. If the laws of the fraternal provide that at least two-thirds of the directors are elected by the members, elected director vacancies may be filled for the remainder of the terms for which there is a vacancy. If the vacancy is one to be filled in some manner other than by a regular election, the election by the board is effective only until a reasonable time has elapsed for choosing the director in that other manner. In the event that the board of directors ceases to exist and there are no members having voting rights, the members without voting rights shall thereupon have power to elect a new board. A director elected under this section to fill the unexpired term of an elected director is an elected director within the meaning of s. 614.42 (1) (a).
History:  1975 c. 373; 1979 c. 102; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.60 - Transactions with affiliates and in which directors and others are interested.

614.60
Transactions with affiliates and in which directors and others are interested.
Sections 611.60 and 611.61 apply to fraternals except that local lodges are not required to keep detailed records under s. 611.61 (1) (b) if the fraternal does so.
History:  1975 c. 373; 1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.66 - Exclusive agency contracts and management contracts.

614.66
Exclusive agency contracts and management contracts.
Sections 611.66 and 611.67 apply to fraternals, except that the reference to s. 611.26 (1) contained in s. 611.66 is to that section as incorporated by s. 614.24.
History:  1975 c. 373; 1997 a. 252.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.73 - Merger and consolidation of fraternals.

614.73
Merger and consolidation of fraternals.
(1)
Authorization, domestic fraternals. Any 2 or more domestic fraternals may merge or consolidate under the provisions of subs. (3) and (4).
(2)
Authorization, domestic and nondomestic fraternals. Any 2 or more domestic and nondomestic fraternals may merge or consolidate under the provisions of sub. (5).
(3)
Procedure for domestic fraternals. The supreme governing body of each domestic fraternal proposing to merge or consolidate shall:
(a)
At least 60 days prior to the proposed action submit the text of the proposed contract to its members in the manner provided by s. 614.29 (4);
(b)
Approve the proposed consolidation or merger by a two-thirds vote; and
(c)
File with the commissioner a certified copy of the written contract containing in full the terms and conditions of the consolidation or merger, a sworn statement by the president and secretary or corresponding officers of each fraternal showing the financial condition of each on a date to be fixed by the commissioner but no earlier than the December 31 of the year preceding the proposed contract, and evidence of compliance with pars. (a) and (b).
(4)
Issuance of certificate by commissioner. The commissioner shall issue a certificate approving the merger or consolidation, upon a finding that:
(a)
The contract conforms to the provisions of this chapter;
(b)
The parties to the proposed contract have complied with the provisions of sub. (3); and
(c)
The proposed contract is just and equitable to the members of each fraternal.
(5)
Procedure for nondomestic fraternals. Where a nondomestic fraternal is a party to the proposed contract, the parties shall follow the procedure for domestic fraternals under subs. (3) and (4), but the commissioner may not issue a certificate of compliance until the parties file a certificate that the proposed contract has been approved in the manner provided by the laws of the jurisdiction under which the fraternal is incorporated, or, if such laws contain no procedure for approval, that the proposed contract has been approved by the commissioner of insurance for that jurisdiction.
(6)
Effective date. The merger or consolidation is effective when the commissioner issues a certificate of approval.
(7)
Effect of consolidation or merger. When the merger or consolidation is effective, the surviving or new fraternal shall have all the assets and be liable for all of the obligations of each of the participating fraternals.
History:  1975 c. 373, 421; 1979 c. 102.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.74 - Voluntary dissolution of solvent domestic fraternals.

614.74
Voluntary dissolution of solvent domestic fraternals.
(1)
Plan of dissolution. At least 60 days prior to the submission to the supreme governing body or the members of any proposed voluntary dissolution, the proposal shall be filed with the commissioner. The commissioner may require the submission of additional information necessary to establish the financial condition of the fraternal or other facts relevant to the proposed dissolution. If the supreme governing body or the members adopt the resolution to dissolve by a majority of those voting or such larger number as the laws of the fraternal require, the commissioner shall, within 30 days after the adoption of the resolution, begin to examine the fraternal. The commissioner shall approve the dissolution unless finding, after a hearing, that it is insolvent or may become insolvent in the process of dissolution. Upon approval, the fraternal may dissolve under ss. 181.1401 to 181.1407. Upon disapproval, the commissioner shall petition the court for liquidation under s. 645.41 (10).
(2)
Conversion to involuntary liquidation. The fraternal may at any time during the liquidation under ss. 181.1401 to 181.1407 apply to the commissioner to have the liquidation continued under the commissioner's supervision; thereupon the commissioner shall apply to the court for liquidation under s. 645.41 (10).
(3)
Revocation of voluntary dissolution. If the fraternal revokes the voluntary dissolution proceedings under s. 181.1404, a copy of the revocation of voluntary dissolution proceedings shall be filed with the commissioner.
History:  1975 c. 373, 421; 1979 c. 102; 1997 a. 79.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.77 - Rehabilitation or involuntary conversion.

614.77
Rehabilitation or involuntary conversion.
If the commissioner believes that a fraternal does not satisfy the requirements of this chapter, the commissioner shall call a hearing and upon a finding that the fraternal does not satisfy the requirements, the commissioner shall petition for rehabilitation under s. 645.31, for the purpose of rehabilitating the fraternal or, if that is not possible, of converting the fraternal to a mutual.
History:  1975 c. 373, 421.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.78 - Maintenance of solvency.

614.78
Maintenance of solvency.
(1)
Order declaring hazardous condition. When a domestic fraternal has an authorized control level event, as defined by the commissioner by rule, under circumstances the commissioner determines will not be promptly remedied, the commissioner, in addition to taking any other action required or allowed by law, may issue an order declaring the domestic fraternal to be in a hazardous condition and may order the fraternal to remedy the authorized control level event. This order may include authorization to the fraternal to negotiate an agreement to transfer, subject to sub. (2), all members, certificates, and other assets and liabilities of the fraternal to another fraternal or other insurer through merger, consolidation, assumption, or other means.
(2)
Specifications regarding transfer.
(a)
Any transfer under sub. (1) shall constitute a novation of the transferring fraternal's certificates that is effective on the date of transfer. The fraternal shall ensure the transfer is concluded within the time agreed to by the commissioner and subject to approval by the commissioner. The transfer agreement under this paragraph is considered to be fully approved by the domestic fraternal upon a majority vote of the fraternal's board of directors, notwithstanding s. 614.73 and any other law or regulation that requires notice to or approval by the fraternal's members or supreme governing body. Any law of a fraternal requiring notice to or approval by the fraternal's members or supreme governing body shall be suspended by this section. The transferring fraternal shall provide notice to its members of the transfer by mail or in the manner provided by s. 614.41 (1) no later than 30 days after the transfer is approved by the commissioner.
(b)
If the fraternal seeks to make a transfer under sub. (1) to an organization that does not have a certificate of authority in this state, the commissioner may grant the organization a limited certificate of authority to service the existing certificates and fulfill all obligations owed to certificate holders following the transfer but not to otherwise transact insurance business in this state.
(c)
By order of the commissioner and notwithstanding any law or rules to the contrary and any laws of the fraternal, the board of directors of the fraternal may suspend or modify the qualifications for membership in the fraternal as necessary to facilitate a transfer under sub. (1).
(d)
Upon the effective date of a transfer to an organization that is not a fraternal and in consideration for the transfer, each member of the fraternal is considered to agree that any terms of a certificate subjecting the certificate to the laws of the fraternal or providing for the maintenance of the fraternal's solvency, except to the extent of any outstanding lien not released by the terms of the transfer, shall be null and void and the assuming organization shall endorse the certificate accordingly.
History:  2019 a. 66; 2021 a. 239 s. 74.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.80 - Tax exemption.

614.80
Tax exemption.
Every domestic and nondomestic fraternal, except those that offer a health maintenance organization as defined in s. 609.01 (2) or a limited service health organization as defined in s. 609.01 (3) is exempt from all state, county, district, municipal and school taxes or fees, except the fees required by s. 601.31 (2), but is required to pay all taxes and special assessments on its real estate and office equipment, except as provided in ss. 70.11 (4) and 70.1105 (1).
History:  1975 c. 373; 1979 c. 102 s. 237; 1995 a. 27; 1997 a. 35; 2001 a. 16.
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.82 - Fraternal expenditures and activities.

614.82
Fraternal expenditures and activities.
(1)
Reports. Every fraternal shall report to the commissioner such information as the commissioner requires concerning expenditures made by the fraternal and other activities and programs of the fraternal or its members in fulfillment of the purposes of s. 614.01 (1) (a) 2. b. or in maintaining its fraternal character.
(2)
Institutions for carrying out fraternal activities. A fraternal may create, maintain and operate social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic or religious institutions for the benefit of its members or their families or dependents or for children insured by the fraternal. For that purpose, it may own, hold or lease real or personal property within or outside of this state. No funeral or undertaking establishment may be owned or operated by the fraternal. All such property shall be reported in the annual statement or an appendix thereto but shall be given only nominal value in the statement. No profit may be made on such institutions, but the income and expenditures shall be reported separately in or as an appendix to the annual statement. Any such institution may be separately incorporated under ch. 181 and ownership of its stock shall be reported at nominal value.
History:  1975 c. 373, 421; 1983 a. 189 s. 329 (25).
2023 Wisconsin Statutes & Annotations › Chapter 614 - Insurance — fraternals. › 614.96 - Exemption of fraternal benefits.

614.96
Exemption of fraternal benefits.
No money or other benefit, charity, relief or aid to be paid, provided or rendered by any domestic or nondomestic fraternal is liable to attachment, garnishment or other process, or to be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member or beneficiary, or any other person who may have a right thereunder, either before or after payment by the fraternal.
History:  1975 c. 373.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.03 - Designation of a mutual insurer as a school benefit insurer.

616.03
Designation of a mutual insurer as a school benefit insurer.
A mutual insurer engaged in no activities other than those specified in s. 616.06 may apply to the commissioner for designation as a school benefit insurer. If the commissioner finds that the insurer is engaged in no other activities, the commissioner shall declare it to be a school benefit insurer. As long as the insurer's activities are thus restricted and it uses the term “school benefit" or its equivalent in its name, it is deemed to be operating under this subchapter, within the meaning of s. 601.31 (2) and shall have the tax exemptions under s. 616.10.
History:  1979 c. 261; 1981 c. 314 s. 146.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.06 - Continuation of existing school benefit plans.

616.06
Continuation of existing school benefit plans.
A plan directed by schools or school authorities in this state, which was organized under s. 185.991, 1977 stats., prior to May 11, 1980 and is operating on a nonprofit basis without capital stock, may continue to operate under this subchapter, if its purpose is exclusively to provide benefits for accidental injury to or accidental death of pupils attending the school.
History:  1979 c. 261.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.07 - Certificate of authority.

616.07
Certificate of authority.
(1)
Issuance. Within 90 days after May 11, 1980, each plan authorized under s. 616.06 shall apply to the commissioner for a certificate of authority to continue the business it was doing on that date. The commissioner shall issue the certificate unless the commissioner finds after a hearing that the plan is in substantial or willful noncompliance with the law. No charge may be made for the initial issuance of the certificate under this subsection.
(2)
Termination. A certificate issued under sub. (1) remains in force until it is revoked after a hearing for a substantial violation of chs. 600 to 646.
History:  1979 c. 261; 1981 c. 314.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.08 - Organization of new insurers.

616.08
Organization of new insurers.
(1)
General. Except as provided in sub. (2), new insurers may be organized exclusively for the purposes stated in s. 616.06 pursuant to the procedures for mutual insurers specified in ch. 611.
(2)
Exceptions.
(a)
Sections 611.24 to 611.26 do not apply to insurers organized under this section.
(b)
After issuance of the certificate of authority, incorporators of an insurer under this section 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 bonds and contribution notes, on itemized receipts audited by the commissioner. The total reimbursement may not exceed 5 percent of the amount received for the bonds and notes.
(c)
Upon request by the incorporators, the commissioner may modify any requirements in the organizational process specified in ch. 611 if the commissioner considers the modification justified by the simplicity of the proposed operation or by the circumstances surrounding the organizational process.
History:  1979 c. 261.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.09 - Applicability of other statutes.

616.09
Applicability of other statutes.
(1)
Existing organizations under s. 616.06.
(a)
1.
Except as provided in subd. 2., plans authorized under s. 616.06 are not subject to chs. 600 to 646.
2.
Plans authorized under s. 616.06 are subject to s. 610.21, 1977 stats., s. 610.55, 1977 stats., s. 610.57, 1977 stats., and ss. 628.34 to 628.39, 1977 stats., to chs. 600, 601, 620, 625, 627 and 645, to ss. 632.72, 632.755, 632.861, and 632.87, and to this subchapter except s. 616.08.
(b)
Plans authorized under s. 616.06 are subject to rules issued under s. 620.03 (3) which are applicable to life insurers.
(c)
1.
Plans authorized under s. 616.06 are subject to ch. 185 or 193, as applicable, except that ss. 185.03 (5) and (6), 185.05 (1) (c), 185.55, 185.61, 185.62, 185.63, 185.64, 185.71 to 185.76, 185.81, 193.215 (2) (a) 2., 193.225, 193.301 (9), 193.801, 193.805, 193.905 to 193.971, and those provisions applicable to cooperatives or unincorporated cooperative associations with stock do not apply.
2.
In all actions commenced after May 11, 1980, in those provisions of ch. 185 which apply under subd. 1. to plans authorized under s. 616.06, “department" shall be deemed to read “department of financial institutions and commissioner", except in s. 185.48, where “department" shall be deemed to read “commissioner".
(d)
Each plan authorized under s. 616.06 shall:
1.
File with the commissioner for approval its rules and regulations and schedules of the benefits contemplated, together with the forms of agreement entered into with students, parents, guardians or others;
2.
File with the commissioner its constitution and bylaws; and
3.
Maintain sufficient reserves to discharge its obligations and for any prepayment of dues or fees collected.
(2)
Corporations organized under s. 616.08.
(a)
Except as provided in par. (b), corporations organized under s. 616.08 are subject to all applicable provisions of chs. 600 to 646.
(b)
Corporations organized under s. 616.08 may elect to be subject to one or more of the following sections in place of corresponding provisions of ch. 611: s. 185.11, 185.12, 185.13, 185.14, 185.15, 185.38 or 185.45.
History:  1979 c. 261; 1981 c. 205; 1981 c. 314 s. 144; 1987 a. 307, 403; 1991 a. 70; 1995 a. 27; 2005 a. 441; 2007 a. 96; 2021 a. 9; 2021 a. 240 s. 30.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.10 - Exemption from taxation.

616.10
Exemption from taxation.
Every mutual designated a school benefit insurer under s. 616.03, every plan authorized under s. 616.06, and every corporation organized under s. 616.08 is declared to be a charitable and benevolent corporation, and its property, real, personal and mixed, and its income and property transferred to it, are exempt from taxation as provided in ss. 70.11, 71.26 (1) (a) and 71.45 (1) (a).
History:  1979 c. 261; 1987 a. 27 s. 3202 (47) (a); 1987 a. 312 s. 17; 2007 a. 20.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.14 - Limitations applicable to plans under s. 616.06.

616.14
Limitations applicable to plans under s. 616.06.
(1)
Governing body. The governing body of a plan shall be the same as the governing body of the sponsoring organization, but must have at least 3 members. If the governing body of the sponsoring organization consists of fewer than 3 members, the governing body of the sponsoring organization shall appoint to the governing body of the plan the number of persons necessary to comply with this subsection. Appointments under this subsection shall be made under rules adopted by the governing body of the sponsoring organization.
(2)
Size. No plan under s. 616.03, 616.06 or 616.08 may operate unless the plan covers a number of students large enough to give stability to its loss experience.
History:  1979 c. 261.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.18 - Restrictions on transactions.

616.18
Restrictions on transactions.
(1)
Voidable transactions. Any material transaction between a plan or corporation authorized under this subchapter and one or more of its management or members of its governing board, or with any person in a position to influence the vote of any member of its governing board or the decision of any of its management or with any person having power to control the plan or corporation is voidable by the plan or corporation unless:
(a)
The transaction at the time it is entered into is reasonable and fair to the interests of the plan or corporation and its members;
(b)
The transaction has, with full knowledge of its terms and of the interests involved, been approved in advance by the governing board or by the members; and
(c)
The transaction has been reported to the commissioner immediately after approval under par. (b).
(2)
Excepted transactions.
(a)
This section does not apply to policies of insurance issued by the plan or corporation in the normal course of its business.
(b)
The commissioner may by rule exempt other classes of transactions from the reporting requirement of sub. (1) (c), if the purposes of this section can be achieved without the report.
History:  1979 c. 261.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.20 - Conversion of plans under s. 616.06 to mutuals under ch. 611 or service insurance corporations under ch. 613.

616.20
Conversion of plans under s. 616.06 to mutuals under ch. 611 or service insurance corporations under ch. 613.
(1)
Authorization. Under a proposal proposed by the officers of a plan operating under s. 616.06 and approved by the commissioner and by a majority of the members voting, the plan may be converted to a mutual under ch. 611 or a service insurance corporation under ch. 613.
(2)
Notice and voting rights. Voting on the conversion is required only if the bylaws provide for it. Voting shall be as provided in the bylaws. If voting is required, but there is no notice provision in the bylaws, the officers shall give notice of the plan to convert under sub. (1) to all members entitled to vote on the conversion at least 30 days before the plan is submitted to the members for a vote. Whether or not voting is required, any member who feels aggrieved by the conversion plan may communicate objections to the commissioner who shall give them consideration before approving the plan. If voting is required by the bylaws, the commissioner may not approve the plan until at least 60 days after notice has been given to all members and 30 days after the voting on the plan. In all cases the commissioner may approve the plan only if the conversion plan protects the legitimate interests of the members.
(3)
Membership and ownership of assets. Members of the plan shall be the members of the mutual or service insurance corporation created by conversion under this section. Assets of the plan shall become assets of the new corporation, and all existing contracts shall become the contracts of the new corporation.
(4)
Liability of officers. If the commissioner approves a conversion under this section, no officer is liable to any member for losses suffered solely as a result of the conversion.
(5)
Fees. A new corporation formed under this section is not subject to the fees under s. 601.31 (1) or (2).
History:  1979 c. 261.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.52 - Applicability.

616.52
Applicability.
(1)
This subchapter does not apply to any of the following:
(a)
Warranties, as defined in s. 100.203 (1) (g), 100.205 (1) (g), or 616.50 (14).
(b)
Maintenance agreements.
(c)
Service contracts offered by public utilities on their devices for the transmission of public utility service to customers to the extent such service contracts are regulated by the public service commission.
(cm)
Service contracts offered by cooperative associations organized under ch. 185, for the purpose of producing or furnishing heat, light, power, or water to their members, or by subsidiaries or affiliates of such cooperative associations.
(d)
Service contracts sold or offered for sale to persons other than consumers.
(e)
Service contracts for inside wire protection plans associated with the offering of telecommunications service, as defined in s. 182.017 (1g) (cq), or video service, as defined in s. 66.0420 (2) (y).
(f)
Service contracts with respect to commercial property used in the provision of telecommunications service, as defined in s. 182.017 (1g) (cq), or video service, as defined in s. 66.0420 (2) (y).
(2)
Motor vehicle manufacturer's service contracts on the motor vehicle manufacturer's products are exempt from this subchapter, except for ss. 616.56 (1) to (3) and (6) to (16), 616.58, and 616.62, and motor vehicle manufacturers offering service contracts on the motor vehicle manufacturer's products are exempt from licensure under s. 616.54 (4).
(3)
A person who holds a valid certificate of authority under s. Ins 15.01, Wis. Adm. Code may elect to do one of the following:
(a)
Continue to operate in this state under the certificate of authority. If the person makes such an election, s. Ins 15.01, Wis. Adm. Code shall continue to apply to the person and this section shall not apply to the person.
(b)
Apply for a license as a provider pursuant to s. 616.54 (4). If the person is licensed, this subchapter shall apply to the person and s. Ins 15.01, Wis. Adm. Code shall not apply to the person for any service contracts issued subsequent to licensure.
History:  2011 a. 226; 2015 a. 197 s. 51.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.58 - Prohibited acts.

616.58
Prohibited acts.
(1)
(a)
A provider shall not use in its name used in this state the words “insurance," “casualty," “surety," or “mutual" or any other words descriptive of the insurance, casualty, or surety business; or a name deceptively similar to the name or description of any insurance or surety corporation, or to the name of any other provider. The word “guaranty" or a similar word may be used by a provider.
(b)
Paragraph (a) does not apply to a provider that was using any language prohibited under par. (a) in its name used in this state prior to April 20, 2012.
(2)
(a)
No provider, administrator, service contract seller, or provider's representative may make or cause to be made any communication relating to a service contract, the service contract business, insurance business, any insurer, any administrator, or any provider that contains false or misleading information, including information that is misleading due to incompleteness. Filing a report and, with intent to deceive a person examining it, making a false entry in a record or intentionally refraining from making a proper entry, are “communications" within the meaning of this paragraph. No provider or administrator may use any business name, slogan, emblem, or related device that is misleading or likely to cause the provider or administrator to be mistaken for another provider or administrator already in business.
(b)
If an administrator or representative of a provider distributes cards or documents, exhibits a sign, or publishes an advertisement that violates par. (a), having reference to a particular provider that the administrator or representative represents, such violation creates a rebuttable presumption that the violation was also committed by the provider.
(3)
A person, including a bank, savings and loan association, lending institution, manufacturer, or seller of any product, shall not require the purchase of a service contract as a condition of a loan or a condition for the sale of any property, except that a person buying or selling a home may condition the purchase or sale of the home on the seller's or buyer's procurement of a service contract that covers the home.
(4)
A motor vehicle service contract provider or its representative shall not, directly or indirectly, represent in any manner, whether by written solicitation or telemarketing, a false, deceptive, or misleading statement with respect to any of the following:
(a)
The provider's affiliation with a motor vehicle manufacturer.
(b)
The provider's possession of information regarding a motor vehicle owner's current motor vehicle manufacturer's original equipment warranty.
(c)
The expiration of a motor vehicle owner's current motor vehicle manufacturer's original equipment warranty.
(d)
A requirement that a motor vehicle owner purchase a new motor vehicle service contract with the provider in order to maintain coverage under the motor vehicle owner's current motor vehicle service contract or manufacturer's original equipment warranty.
History:  2011 a. 226.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.60 - Record-keeping requirements.

616.60
Record-keeping requirements.
(1)
(a)
A provider shall keep accurate accounts, books, and records concerning transactions regulated under this subchapter.
(b)
A provider's accounts, books, and records shall include all of the following:
1.
Copies of each type of service contract sold.
2.
The name and address of each service contract holder that has furnished such information to the provider.
3.
A list of the locations where service contracts are marketed, sold, or offered for sale in this state.
4.
Written claims files that shall contain at least the dates, descriptions, and amounts paid or denied for claims related to the service contracts.
5.
The effective date, expiration date, name of the seller, and provider fee paid for each service contract sold in this state.
(c)
Except as provided in sub. (2), a provider shall retain all records required to be maintained under this subsection for a service contract for at least one year after the period of coverage specified in the contract has expired.
(d)
The records required under this subsection may be, but are not required to be, maintained on a computer disk or other record-keeping technology. If the records are maintained in other than hard copy, the records shall be capable of duplication to electronic copy or legible hard copy at the request of the commissioner.
(2)
A provider discontinuing business in this state shall maintain its records until it furnishes the commissioner satisfactory proof that it has discharged all obligations to service contract holders in this state.
History:  2011 a. 226.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.62 - Enforcement.

616.62
Enforcement.
(1)
The commissioner may conduct examinations of providers, administrators, servicer contract sellers, or other persons under ss. 601.43 to 601.45 to enforce the provisions of this subchapter and protect service contract holders in this state. Upon request of the commissioner, a provider shall make all accounts, books, and records concerning service contracts sold by or on behalf of the provider available to the commissioner which are necessary to enable the commissioner to reasonably determine compliance with this subchapter.
(2)
The commissioner may take any action under ss. 601.41 and 601.61 to 601.73 that is necessary or appropriate to enforce the provisions of this subchapter and the commissioner's rules and orders and to protect service contract holders in this state. The commissioner may subject a provider to any reporting and replying requirement under s. 601.42.
History:  2011 a. 226.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.72 - License to sell motor club service.

616.72
License to sell motor club service.
No company shall sell or offer for sale any motor club service without first having deposited with the commissioner the sum of $25,000, in cash or securities approved by the commissioner, or, in lieu thereof, a bond in the form prescribed by the commissioner, payable to the state of Wisconsin, in the sum of $50,000, with corporate surety approved by the commissioner, conditioned upon the faithful performance in the sale or rendering of motor club service and payment of any fines or penalties levied against it for failure to comply with this chapter. Upon the depositing of such security with the commissioner, it shall be the duty of said commissioner to issue a certificate of authority to said company. The provisions of this section shall not affect or apply to any company heretofore organized which has been in continuous operation in this state for a period of more than 3 years immediately prior to May 24, 1933 and has a fully paid annual membership of more than 500 members within this state. The foregoing cash deposit or bond is not required in any instance as a penalty, but for the protection of the public only.
History:  1977 c. 339 ss. 8, 44; Stats. 1977 s. 616.72.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.74 - Manner of obtaining company license; fee.

616.74
Manner of obtaining company license; fee.
(1)
No certificate of authority shall be issued by the commissioner until the company has filed with the commissioner the following:
(a)
A formal application in such form and detail as the commissioner may require, executed under oath by its president or other principal officer;
(b)
A certified copy of its charter or articles of incorporation and its bylaws, if any;
(c)
A certificate from the department of financial institutions, if it is a nonprofit corporation, that it has complied with the corporation laws of this state; if it is a corporation the stock of which has been or is being sold to the general public, a certificate from the division of securities that it has complied with the requirements of the securities law of this state.
(2)
No certificate of authority shall be issued by the commissioner until the company has paid to the commissioner the fee required by s. 601.31 (1) (b).
(3)
Every certificate of authority issued hereunder shall expire annually on July 1, of each year, unless sooner revoked or suspended, as hereinafter provided.
History:  1971 c. 307; 1977 c. 339 s. 8; Stats. 1977 s. 616.74; 1979 c. 102 s. 237; 1991 a. 316; 1995 a. 27.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.76 - Form of service contract.

616.76
Form of service contract.
No service contract shall be executed, issued, or delivered in this state until the form thereof has been approved in writing by the commissioner.
History:  1977 c. 339 s. 8; Stats. 1977 s. 616.76.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.77 - Execution of service contract.

616.77
Execution of service contract.
Every service contract, executed, issued, or delivered in this state shall be made in duplicate, and shall be dated and signed by the company issuing the service contract and by the party purchasing the service contract, and one copy shall be kept by the company, and the other copy shall be delivered to the party purchasing the service contract.
History:  1977 c. 339 s. 8; Stats. 1977 s. 616.77; 1987 a. 166.
2023 Wisconsin Statutes & Annotations › Chapter 616 - Miscellaneous insurers. › 616.78 - Contents of contract.

616.78
Contents of contract.
No service contract shall be executed, issued, or delivered in this state unless it contains the following:
(1)
The exact corporate or other name of the company.
(2)
The exact location of its home office and of its usual place of business in this state, giving street number and city.
History:  1977 c. 339 s. 8; Stats. 1977 s. 616.78.