reglab/statecodes huggingface dataset:
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.04 - Authority to obtain information or examine not restricted

Current through June 24, 2024
This subchapter does not limit the authority of the
				  commissioner to require an insurer or any other person to provide information,
				  or to conduct an examination of an insurer or any other person, under any other
				  statute or rule.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.05 - General requirements related to filing and extensions for filing of annual audited financial reports and audit committee appointment

Current through June 24, 2024
(1) An insurer
				shall:
(a) Annually obtain or cause an audit
				of the insurer by an independent certified public accountant; and
(b) File an audited financial report that
				complies with s.
				Ins
				50.06 with the commissioner on or before June 1 for
				the immediately preceding calendar year.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.06 - Contents of annual audited financial report

Current through June 24, 2024
The annual audited financial report required under s.
				  Ins
				  50.05 shall comply with all of the following:
(1) Report the financial position of the
				insurer as of the end of the most recent calendar year and the results of its
				operations, cash flows and changes in capital and surplus for the year then
				ended in conformity with statutory accounting practices prescribed, or
				otherwise permitted, by the department of insurance, or equivalent agency, of
				the state of domicile, or, for a domestic insurer, in conformity with
				accounting practices prescribed or permitted in annual statements filed with
				the commissioner, as provided under s.
				Ins
				7.02.
(2)
				Include all of the following:
(a) The report
				of the independent certified public accountant.
(b) A balance sheet reporting admitted
				assets, liabilities, capital and surplus.
(c) A statement of operations.
(d) A statement of cash flows.
(e) A statement of changes in capital and
				surplus.
(f) Notes to financial
				statements. These notes shall be those required by the appropriate national
				association of insurance commissioners' annual statement instructions and
				accounting practices and procedures manual. The notes shall include a
				reconciliation of differences, if any, between the audited statutory financial
				statements and the annual statement filed pursuant to subch. II with a written
				description of the nature of these differences.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.07 - Designation of independent certified public accountant

Current through June 24, 2024
(1) An insurer
				shall, within 60 days after the insurer becomes subject to this subchapter:
(a) Provide the commissioner in writing the
				name and address of the independent certified public accountant retained to
				conduct the annual audit required by this subchapter.
(b) File with the commissioner a copy of the
				letter required to be obtained under sub. (3).
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.08 - Qualifications of independent certified public accountants

Current through June 24, 2024
(1) The
				commissioner may rule that an accountant or accounting firm is not qualified
				for purposes of expressing an opinion on the financial statements in the annual
				audited financial report required under this subchapter and prohibit insurers
				from retaining the accountant or an accounting firm, and require insurers to
				replace the accountant or accounting firm, if the commissioner finds there is
				cause, including, but not limited to, a finding that the accountant or
				accounting firm:
(a) Is not in good standing
				with the American institute of certified public accountants and in all states
				in which the accountant or accounting firm is, or is required to be, licensed
				to practice, or, for a Canadian or British company, that it is not a chartered
				accountant;
(am) Has either
				directly or indirectly entered into an agreement of indemnification with
				respect to the audit of the insurer;
(b) Has not conformed to the standards of the
				accounting profession as contained in the code of professional ethics of the
				American institute of certified public accountants and rules and regulations
				and code of ethics and rules of professional conduct of the accounting
				examining board, or a similar code;
(c) Has been convicted of fraud, bribery, a
				violation of the Racketeer Influenced and Corrupt Organizations Act, to , or
				any dishonest conduct or practices under federal or state law;
(d) Has been found to have violated the
				insurance laws or rules of this state; or
(e) Has demonstrated a pattern or practice of
				failing to detect or disclose material information in financial
				reports.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.09 - Consolidated or combined audits

Current through June 24, 2024
An insurer may file audited consolidated or combined
				  financial statements in lieu of separate annual audited financial statements
				  required under this subchapter if the commissioner approves in writing and if
				  the insurer is part of a group of insurers which utilizes a pooling or 100%
				  reinsurance agreement that affects the solvency and integrity of the insurer's
				  reserves and the insurer cedes all of its direct and assumed business to the
				  pool. If the commissioner permits a consolidated report under this section the
				  report shall include a columnar consolidating or combining work sheet, as
				  follows:
(1) Amounts shown on the
				consolidated or combined audited financial report shall be shown on the work
				sheet.
(2) Amounts for each insurer
				subject to this section shall be stated separately.
(3) Noninsurance operations may be shown on
				the work sheet on a combined or individual basis.
(4) Explanations of consolidating and
				eliminating entries shall be included.
(5) A reconciliation shall be included of any
				differences between the amounts shown in the individual insurer columns of the
				work sheet and comparable amounts shown on the annual statements of the
				insurers.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.10 - Scope of audit and report of independent certified public accountant

Current through June 24, 2024
Financial statements furnished under s.
				  Ins
				  50.06 shall be audited by the independent certified
				  public accountant. The independent certified public accountant shall conduct
				  the audit of the insurer's financial statements in accordance with generally
				  accepted auditing standards. In accordance with AU Section 319 of the
				  Professional Standards of the AICPA, Consideration of Internal Control in a
				  Financial Statement Audit, the independent certified public accountant should
				  obtain an understanding of internal control sufficient to plan the audit. To
				  the extent required by AU Section 319, for those insurers required to file a
				  management's report of internal control over financial reporting pursuant to s.
				  Ins
				  50.17, the independent certified public accountant
				  should consider, as that term is defined in Statement on Auditing Standards,
				  SAS, No. 102, Defining Professional Requirements in Statements on Auditing
				  Standards, or its replacement, the most recently available report in planning
				  and performing the audit of the statutory financial statements. The independent
				  certified public accountant shall give consideration to procedures illustrated
				  in the financial condition examiner's handbook promulgated by the national
				  association of insurance commissioners as the independent certified public
				  accountant deems necessary. The commissioner may require that an independent
				  certified public accountant conduct additional procedures or provide additional
				  reports.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.11 - Notification of adverse financial condition

Current through June 24, 2024
(1) An insurer
				shall require the independent certified public accountant to report, in writing
				and within 5 business days, to the board of directors of the insurer or its
				audit committee any determination by the independent certified public
				accountant that the insurer has materially misstated its financial condition as
				reported to the commissioner as of the balance sheet date currently under audit
				or that the insurer does not meet the minimum capital and surplus or compulsory
				surplus requirements.
(2) An
				insurer who receives a report required under sub. (1) shall forward a copy of
				the report to the commissioner within 5 business days of receipt of the report
				and shall provide the independent certified public accountant making the report
				with evidence that the report has been furnished to the commissioner.
(3) An independent certified public
				accountant shall furnish to the commissioner a copy of its report required
				under sub. (1) within 10 business days after it is furnished to the insurer
				under sub. (1) unless the independent certified public accountant receives
				evidence the insurer has provided it within the 10 business day period to the
				commissioner as required under sub. (2).
(4) An executive officer or director of an
				insurer which receives notice under sub. (1) shall report the notification in
				writing to the commissioner within 5 business days of the date the executive
				officer or director first acquires knowledge of the notification unless prior
				to that date the insurer complies with sub. (2).
(5) If the independent certified public
				accountant, subsequent to the date of the audited financial report filed
				pursuant to this chapter, becomes aware of facts that might have affected the
				report, the independent certified public accountant shall take the action as
				prescribed in Volume 1, Section AU 561 of the Professional Standards of the
				AICPA.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.12 - Communication of internal control related matters noted in an audit

Current through June 24, 2024
(1) An
				insurer shall file with the commissioner within 60 days of the date an annual
				audited financial report is filed, or is required under s.
				Ins
				50.05 to be filed, a written communication prepared by
				the independent certified public accountant describing any unremediated
				material weaknesses in its internal controls over financial reporting noted
				during the audit. Such communication shall be prepared by the independent
				certified public accountant and shall contain a description of any unremediated
				material weakness, as the term material weakness is defined by Statement on
				Auditing Standard 60, Communication of Internal Control Related Matters Noted
				in an Audit, or its replacement, as of December 31 immediately preceding, so as
				to coincide with the audited financial report discussed in s.
				Ins
				50.05(1), in the insurer's internal
				control over financial reporting noted by the accountant during the course of
				the audit of the financial statements. If no unremediated material weaknesses
				were noted, the communication should so state.
(2) The insurer shall provide a description
				of remedial actions taken or proposed to correct unremediated material
				weaknesses, if the actions are not described in the independent certified
				public accountant's communication.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.13 - Accountant's letter of qualifications

Current through June 24, 2024
An accountant or accounting firm retained by an insurer to
				  comply with this subchapter shall furnish the insurer, and the insurer shall
				  obtain and include with the filing of the annual audited financial report
				  required under s.
				  Ins
				  50.05, a letter from the accountant or accounting firm
				  stating:
(1) That the accountant or
				accounting firm is independent with respect to the insurer and conforms to the
				standards of his or her profession as contained in the code of professional
				ethics and pronouncements of the American institute of certified public
				accountants and the rules of professional conduct of the board of public
				accountancy of this state, or similar code.
(2) The background and experience in general,
				and the experience in audits of insurers of the staff assigned to the
				engagement and whether each is an independent certified public accountant. This
				subchapter does not prohibit the accountant or accounting firm from utilizing
				such staff as he or she deems appropriate where use is consistent with the
				standards prescribed by generally accepted auditing standards.
(3) That the accountant or accounting firm
				understands that the annual audited financial report and his or her opinion on
				the annual audited financial report will be filed in compliance with this
				chapter and that the commissioner will be relying on this information in the
				monitoring and regulation of the financial position of insurers.
(4) That the accountant or accounting firm
				consents to the requirements of s.
				Ins
				50.14 and that the accountant or accounting firm
				consents and agrees to make available work papers for review by the
				commissioner.
(5) A representation
				that the accountant or accounting firm is properly licensed by an appropriate
				state licensing authority and is a member in good standing in the American
				institute of certified public accountants.
(6) A representation that the accountant or
				accounting firm is an independent certified public accounting firm and that
				there are no grounds for disqualification of the accountant or accounting firm
				under s.
				Ins
				50.08.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.14 - Availability and maintenance of CPA work papers

Current through June 24, 2024
(1) An insurer
				shall require the accountant or accounting firm which conducts an audit or
				other procedure under this subchapter to make available for review all work
				papers and any communications related to the audit or procedure between the
				insurer and the accountant or accounting firm at the offices of the insurer or
				at a reasonable place designated by the commissioner. The insurer shall require
				that the accountant retain the audit work papers and communications until the
				commissioner has filed a report on examination covering the period of the audit
				but no longer than 7 years from the date of the audit report.
(2) The commissioner may obtain copies of
				work papers and retain the copies. If copies of work papers are requested in
				electronic format, the electronic copies must be as fully functional as the
				original documents. Password protection of the storage medium used to transmit
				electronic work papers is acceptable in order to securely transfer electronic
				work papers to the commissioner. Passwords on individual electronic work
				papers, or passwords that disable features of individual electronic work
				papers, are not permitted. All working papers and communications obtained by
				the commissioner under this section are confidential under s.
				601.465,
				Stats.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.155 - Internal audit function requirements

Current through June 24, 2024
(1) An insurer is exempt from the requirements of this section if:
(a) The insurer has total annual direct written and unaffiliated assumed
										premiums, including international direct and assumed premiums but excluding premiums reinsured with the
										Federal Crop Insurance Corporation and Federal Flood Program, less than $500,000,000; and
(b) If the insurer is a member of a group of insurers, the group has total
										annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums
										but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less
										than $1,000,000,000.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.16 - Conduct of insurer in connection with the preparation of required reports and documents

Current through June 24, 2024
(1) No director or officer of an insurer
				shall, directly or indirectly:
(a) Make or
				cause to be made a materially false or misleading statement to an accountant in
				connection with any audit, review or communication required under this
				chapter.
(b) Omit to state, or
				cause another person to omit to state, any material fact necessary in order to
				make statements made, in light of the circumstances under which the statements
				were made, not misleading to an accountant in connection with any audit, review
				or communication required under this chapter.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.17 - Management's report of internal control over financial reporting

Current through June 24, 2024
(1) Every insurer
				required to file an audited financial report pursuant to this subchapter that
				has annual direct written and assumed premiums, excluding premiums reinsured
				with the Federal Crop Insurance Corporation and Federal Flood Program, of $
				500,000,000 or more shall prepare a report of the insurer's or group of
				insurers' internal control over financial reporting as the terms are defined in
				s.
				Ins 50.01. The report
				shall be filed with the commissioner along with the Communication of Internal
				Control Related Matters Noted in an Audit described in s.
				Ins
				50.12. Management's report of internal control over
				financial reporting shall be as of December 31 immediately preceding.
(2) Notwithstanding the premium threshold in
				sub. (1), the commissioner may require an insurer to file management's report
				of internal control over financial reporting if the insurer is in any risk
				based capital event as described in s.
				Ins 51.01, or the
				insurer is in financially hazardous condition.
(3) In lieu of the management's report of
				internal control over financial reporting, an insurer or a group of insurers
				may file a report described in sub. (4) if any of the following criteria are
				applicable:
(a) The insurer is directly
				subject to Section 404.
(b) The
				insurer is part of a holding company system whose parent is directly subject to
				Section 404.
(c) The insurer is not
				directly subject to Section 404 but is a SOX Compliant Entity.
(d) The insurer is a member of a holding
				company system whose parent is not directly subject to Section 404 but is a SOX
				Compliant Entity.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter I - Annual Audited Financial Reports › Section Ins 50.19 - Canadian and British companies

Current through June 24, 2024
(1) In the case of
				Canadian and British insurers, for the purpose of this subchapter the annual
				audited financial report shall be defined as the annual statement of total
				business on the form filed by the insurers with their domiciliary supervisory
				authority duly audited by an independent chartered accountant.
(2) For Canadian and British insurers, the
				letter required in s.
				Ins
				50.07 shall state that the accountant is aware of the
				requirements relating to the annual audited statement filed with the
				commissioner under s.
				Ins
				50.05 and shall affirm that the opinion expressed is
				in conformity with those requirements.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter II - Annual Financial Statements › Section Ins 50.20 - Insurers to file annual financial statements

Current through June 24, 2024
(1) An insurer
				shall file an annual financial statement with the commissioner. Except as
				otherwise required by law, rule, order or instruction of the commissioner, an
				insurer shall file the annual financial statement:
(a) On the national association of insurance
				commissioners annual statement blank appropriate for the lines of business the
				insurer is authorized to write, except an insurer licensed under ch. 612,
				Stats., may file on the town mutual annual statement blank prescribed by the
				commissioner; and
(b) Prepared in
				accordance with the national association of insurance commissioners annual
				statement instructions and the accounting practices or procedures prescribed or
				permitted by the applicable national association of insurance commissioners
				accounting practices and procedures manual except an insurer licensed under ch.
				612, Stats., shall prepare the statement as prescribed by the
				commissioner.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter II - Annual Financial Statements › Section Ins 50.25 - Insurers to file with the national association of insurance commissioners

Current through June 24, 2024
(1) This section applies to all licensed
				insurers, except:
(a) Those categories of
				insurers whose annual or quarterly statements the national association of
				insurance commissioners does not collect on the date filing is required, unless
				otherwise required by the commissioner;
(b) An insurer organized under ch. 612,
				Stats., unless otherwise ordered by the commissioner; and
(c) Insurers the commissioner exempts after
				finding an exemption is in the public interest.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter II - Annual Financial Statements › Section Ins 50.30 - Actuarial opinion required

Current through June 24, 2024
(1) An insurer
				shall file with the annual financial statement required under s.
				Ins
				50.20 a statement of actuarial opinion from a
				qualified actuary in accordance with the appropriate national association of
				insurance commissioners annual statement instructions.
(2) A domestic property and casualty insurer
				required to file an actuarial opinion under sub. (1) shall do all of the
				following:
(a) Submit an actuarial opinion
				summary, written by the insurer's appointed actuary, with the financial
				statement and actuarial opinion. The actuarial opinion summary shall be filed
				in accordance with the appropriate national association of insurance
				commissioners property and casualty annual statement instructions and shall be
				considered as a document supporting the actuarial opinion required in sub.
				(1).
(b) Prepare an actuarial
				report and supporting work papers as required by the appropriate national
				association of insurance commissioners property and casualty annual statement
				instructions to support each actuarial opinion. The office of the commissioner
				of insurance may require the insurer to file the actuarial report or supporting
				work papers. The insurer is required to file the actuarial report or supporting
				work papers only if the insurer is asked to do so by the office of the
				commissioner of insurance.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter III - Examinations › Section Ins 50.50 - Examinations

Current through June 24, 2024
(1) The commissioner may determine the
				nature, scope and frequency of examinations under s.
				601.43,
				Stats., except at a minimum every insurer licensed in this state shall be
				examined every 5 years, unless it is a limited service health organization,
				town mutual, a gift annuity licensee under ch. 615, Stats., motor club,
				warranty plan, or an insurer exempted under s. , 1981 stats.
Note:
Chapter 615, Stats., was repealed by 2013
				  Wisconsin Act 271
(2)
				Factors the commissioner may consider in determining the scheduling of an
				examination include, but are not limited to, results of financial statement
				analyses and ratios, changes in management or ownership, actuarial opinions,
				reports of independent certified public accountants, other criteria in the
				Examiners' Handbook adopted by the national association of insurance
				commissioners, and the priority of conducting an examination of an insurer
				relative to other insurers.
(3) The
				commissioner may determine the nature and scope of an examination. An
				examination may, but need not, cover all aspects of the insurer's assets,
				condition, affairs and operations, and may involve or be supplemented by review
				of audit procedures performed by accountants. Examinations may include, but are
				not limited to, the following types of examinations:
(a) Compliance examinations which are a
				general review of the insurer's corporate affairs and insurance operations to
				determine compliance with chs. 600 to 646, Stats. A compliance examination may
				consist of review of an accountant's work papers or be supplemented by such a
				review.
(b) Targeted examinations
				are limited to a review of specified areas. Areas that may be targeted may
				include, but are not limited to, life reserve valuations, claims analyses,
				organizational and capital changes, loss reserves or market conduct.
(c) Comprehensive examinations which are
				complete examinations of the condition and affairs of the insurer.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter III - Examinations › Section Ins 50.55 - Examination of foreign and alien insurers

Current through June 24, 2024
(1) The
				commissioner may accept, under s.
				Ins 50.50, an
				examination report on a licensed foreign or alien insurer which is prepared by
				the insurance department for the insurer's state of domicile until December 31,
				1993. After December 31, 1993, an examination report from the insurance
				department of the insurer's state of domicile may only be accepted if:
(a) The insurance department is at the time
				of the examination accredited under the National Association of Insurance
				Commissioners' Financial Regulation Standards and Accreditation Program;
				or
(b) The examination is performed
				under the supervision of an accredited insurance department or with the
				participation of one or more examiners who are employed by an accredited state
				insurance department and who, after a review of the examination work papers and
				report, state under oath that the examination was performed in a manner
				consistent with the standards and procedures required by their insurance
				department.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter IV - Actuarial Opinion › Section Ins 50.60 - Definitions

Current through June 24, 2024
In this chapter, "qualified actuary" means a member in good
				  standing of the American academy of actuaries unless disqualified by a standard
				  or determination of the commissioner.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter IV - Actuarial Opinion › Section Ins 50.65 - Actuarial opinion required

Current through June 24, 2024
(1) For each year
				ending on or after December 31, 1996, every life insurance company doing
				business in this state shall submit to the commissioner, with its annual
				statement due by March 1 of the following year, an opinion by a qualified
				actuary as to whether the reserves and related actuarial items held in support
				of the policies and contracts specified by the commissioner satisfy all of the
				following:
(a) They are computed
				appropriately.
(b) They are based
				on assumptions that satisfy contract provisions.
(c) They are consistent with prior reported
				amounts.
(d) They comply with the
				applicable laws of this state.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter IV - Actuarial Opinion › Section Ins 50.67 - Reserves

Current through June 24, 2024
(1) An insurance company's aggregate reserves
				for all policies, contracts and benefits may not be less than the aggregate
				reserves determined by a qualified actuary in an opinion under this chapter to
				be necessary to make adequate provision for the company's obligations under the
				policies and contracts.
(2) For the
				purpose of s.
				623.06(6),
				Stats., holding any additional reserves that a qualified actuary, in an opinion
				under this chapter determined to be necessary to make adequate provision for
				the company's obligations under the policies and contracts shall not be
				considered the adoption of a higher standard of valuation.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter IV - Actuarial Opinion › Section Ins 50.68 - Reliance on actuary opinion

Current through June 24, 2024
An actuarial opinion which is issued by a qualified actuary
				  and required under this subchapter and subch. V is solely for the benefit of
				  the insurer which is the subject of the opinion, the commissioner and the
				  office. It is not for the benefit of any other person and is therefore not to
				  be relied upon by any other person unless reliance is induced by fraud or
				  willful misconduct.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.70 - Purpose

Current through June 24, 2024
(1) Guidelines and standards for statements
				of actuarial opinion which are to be submitted in accordance with subch. IV and
				ch. 623, Stats., and for memoranda in support of such an opinion.
(2) Rules applicable to the appointment of an
				appointed actuary.
(3) Guidance as
				to the meaning of "adequacy of reserves."
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.71 - Authority

Current through June 24, 2024
This rule is issued pursuant to the authority vested in the
				  commissioner under ss.
				  601.42,
				  601.43,
				  601.465,
				  Stats., and ch. 623, Stats.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.72 - Scope

Current through June 24, 2024
This subchapter shall apply to all life insurance companies
				  and fraternal benefit societies doing business in this state and to all life
				  insurance companies and fraternal benefit societies which are authorized to
				  reinsure life insurance, annuities or accident and health insurance business in
				  this state. This subchapter shall be applied in a manner that allows the
				  appointed actuary to utilize his or her professional judgment in performing the
				  asset analysis and developing the actuarial opinion and supporting memoranda,
				  consistent with relevant actuarial standards of practice. However, the
				  commissioner may specify specific methods of actuarial analysis and actuarial
				  assumptions when, in the commissioner's judgment, these specifications are
				  necessary for an acceptable opinion to be rendered relative to the adequacy of
				  reserves and related items. This subchapter shall be applicable to all annual
				  statements filed with the office of the commissioner of insurance. A statement
				  of opinion on the adequacy of the reserves and related actuarial items based on
				  an asset adequacy analysis in accordance with s.
				  Ins
				  50.78, and a memorandum in support thereof in
				  accordance with s.
				  Ins
				  50.79, is required each year.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.73 - Definitions

Current through June 24, 2024
(1) "Actuarial opinion" means the opinion of
				an appointed actuary regarding the adequacy of the reserves and related
				actuarial items based on an asset adequacy analysis in accordance with s.
				Ins
				50.78 and with applicable actuarial standards of
				practice.
(2) "Actuarial standards
				board" is the board established by the american academy of actuaries to develop
				and promulgate standards of actuarial practice.
(3) "Annual statement" means that statement
				required by s.
				Ins
				50.20 to be filed by the company annually.
(4) "Appointed actuary" means any individual
				who is appointed or retained in accordance with the requirements set forth in
				s.
				Ins
				50.75(3) to provide the actuarial
				opinion and supporting memorandum as required by subch. IV and ch. 623,
				Stats.
(5) "Asset adequacy
				analysis" means an analysis that meets the standards and other requirements
				referred to in s.
				Ins
				50.75(4). It may take many forms,
				including, but not limited to, cash flow testing, sensitivity testing or
				applications of risk theory.
(6)
				"AVR" means asset valuation reserve.
(7) "Commissioner" means the commissioner of
				insurance of this state.
(8)
				"Company" means a life insurance company, fraternal benefit society or
				reinsurer subject to the provisions of [this] subchapter.
(9) "Qualified Actuary" means any individual
				who meets the requirements set forth in s.
				Ins
				50.75(2).
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.75 - General requirements

Current through June 24, 2024
(1) SUBMISSION OF STATEMENT OF ACTUARIAL
				OPINION.
(a) There is to be included on or
				attached to Page 1 of the annual statement for each year beginning with 1996
				the statement of an appointed actuary, entitled "Statement of Actuarial
				Opinion," setting forth an opinion relating to reserves and related actuarial
				items held in support of policies and contracts, in accordance with s.
				Ins
				50.78.
(b)
				Upon written request by the company, the commissioner may grant an extension of
				the date for submission of the statement of actuarial opinion.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.76 - Required opinions

Current through June 24, 2024
In accordance with subch. IV and ch. 623, Stats., every
				  company doing business in this state shall annually submit the opinion of an
				  appointed actuary as provided for by this subchapter.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter V - Actuarial Opinion and Memorandum Regulation › Section Ins 50.78 - Statement of actuarial opinion based on an asset adequacy analysis

Current through June 24, 2024
(1) GENERAL
				DESCRIPTION. The statement of actuarial opinion submitted in accordance with
				this subchapter shall consist of:
(a) A
				paragraph identifying the appointed actuary and his or her
				qualifications;
(b) A scope
				paragraph identifying the subjects on which an opinion is to be expressed and
				describing the scope of the appointed actuary's work, including a tabulation
				delineating the reserves and related actuarial items which have been analyzed
				for asset adequacy and the method of analysis, and identifying the reserves and
				related actuarial items covered by the opinion which have not been so
				analyzed;
(c) A reliance paragraph
				describing those areas, if any, where the appointed actuary has deferred to
				other experts in developing data, procedures or assumptions, including
				anticipated cash flows from currently owned assets and variation in cash flows
				according to economic scenarios, supported by a statement of each such expert
				in the form prescribed by sub. (5); and
(d) An opinion paragraph expressing the
				appointed actuary's opinion with respect to the adequacy of the supporting
				assets to mature the liabilities.
(e) One or more additional paragraphs will be
				needed in individual company cases as follows:
1. If the appointed actuary considers it
				necessary to state a qualification of his or her opinion;
2. If the appointed actuary must disclose an
				inconsistency in the method of analysis or basis of asset allocation used at
				the prior opinion date with that used for this opinion.
3. If the appointed actuary must disclose
				whether additional reserves of the prior opinion date are released as of this
				opinion date, and the extent of the release.
4. If the appointed actuary chooses to add a
				paragraph briefly describing the assumptions which form the basis for the
				actuarial opinion.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 50 - Annual Audited Financial Reports, Annual Financial Statements And Examinations › Subchapter VI - Risk Retention and Purchasing Groups › Section Ins 50.85 - Risk retention groups and risk purchasing groups

Current through June 24, 2024
(1) The
				commissioner is constituted attorney to receive service of summons, notices,
				orders, pleadings and all other legal process relating to any court or
				administrative agency in this state for all risk retention groups and risk
				purchasing groups as to any proceeding arising out of the business of insurance
				in this state, insurance activities in this state, or out-of-state activities
				related to policies on risks within this state.
(2) A risk retention group or risk purchasing
				group may not conduct an insurance business or engage in any insurance activity
				in this state until it registers with the commissioner and designates the
				commissioner as its agent for the purposes described under sub. (1). If a risk
				retention group or risk purchasing group fails to designate the commissioner as
				required by this section, the commissioner is deemed appointed as provided by
				sub. (1).
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 51 - Capital Requirements For Insurers › Subchapter I - Risk Based Capital Requirement for Insurers › Section Ins 51.01 - Definitions

Current through June 24, 2024
In this subchapter:
(1)
										"Adjusted risk based capital report" means a risk based capital report which has been adjusted by the
										commissioner in accordance with s. Ins 51.05 (6).
(2)
										"Authorized control level event" means any of the following events:
(a) The filing of a risk based capital report by the insurer which
										indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level
										risk based capital but less than its authorized control level risk based capital.
(b) The notification by the commissioner to the insurer of an adjusted risk
										based capital report that indicates the event in par. (a), if the insurer does not challenge the adjusted
										risk based capital report under s. Ins 51.50.
(c) If, under s. Ins
										51.50, the insurer challenges an adjusted risk based capital report that indicates the event in par. (a),
										notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the
										insurer's challenge.
(d) The failure of the insurer to respond, in
										a manner satisfactory to the commissioner, to a corrective order, if the insurer has not challenged the
										corrective order under s. Ins 51.50.
(e) If the insurer has
										challenged a corrective order under s. Ins 51.50 and the commissioner has, after a hearing, rejected the
										challenge or modified the corrective order, the failure of the insurer to respond, in a manner satisfactory
										to the commissioner, to the corrective order subsequent to rejection or modification by the
										commissioner.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 51 - Capital Requirements For Insurers › Subchapter I - Risk Based Capital Requirement for Insurers › Section Ins 51.05 - Risk based capital reports

Current through June 24, 2024
(1) Every domestic
				insurer shall, on or prior to each March 1, prepare and submit a report of its
				risk based capital levels as of the end of the calendar year just ended, in a
				form and containing such information as is required by the risk based capital
				instructions. For the purpose of this section filing of a risk based capital
				report with the NAIC constitutes filing with the commissioner. A domestic
				insurer shall file its risk based capital report with all of the following:
(a) The NAIC in accordance with the risk
				based capital instructions.
(b) The
				insurance commissioner in any state in which the insurer is authorized to do
				business, if the insurance commissioner has notified the insurer of its request
				in writing, in which case the insurer shall file its risk based capital report
				not later than the later of:
1. Fifteen days
				from the receipt of notice to file its risk based capital report with that
				state.
2. March 1.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 51 - Capital Requirements For Insurers › Subchapter I - Risk Based Capital Requirement for Insurers › Section Ins 51.15 - Company action event

Current through June 24, 2024
(1) If a company action level event occurs,
				the insurer shall prepare and submit to the commissioner a risk based capital
				plan which shall include all of the following:
(a) Identification of the conditions which
				contribute to the company action level event.
(b) Proposals of corrective actions which the
				insurer intends to take and would be expected to result in the elimination of
				the company action level event.
(c)
				Projections of the insurer's financial results in the current year and at least
				the four succeeding years, both in the absence of proposed corrective actions
				and giving effect to the proposed corrective actions, including projections of
				statutory operating income, net income, capital or surplus or both. The
				projections for both new and renewal business shall include separate
				projections for each major line of business and separately identify each
				significant income, expense and benefit component, if appropriate.
(d) Identification of the key assumptions
				impacting the insurer's projections and the sensitivity of the projections to
				the assumptions.
(e) Discussion of
				the quality of, and problems associated with, the insurer's business, including
				but not limited to its assets, anticipated business growth and associated
				surplus strain, extraordinary exposure to risk, mix of business and use of
				reinsurance, if any, in each case.
(f) Such other information as is requested by
				the commissioner.
Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 51 - Capital Requirements For Insurers › Subchapter I - Risk Based Capital Requirement for Insurers › Section Ins 51.20 - Regulatory action level event

Current through June 24, 2024
(1) If a regulatory
				action level event occurs with respect to an insurer the commissioner shall:
(a) Require the insurer to prepare and submit
				a risk based capital plan or, if applicable, a revised risk based capital
				plan;
(b) Perform such examination
				or analysis as the commissioner deems necessary of the assets, liabilities and
				operations of the insurer including a review of its risk based capital plan or
				revised risk based capital plan; and
(c) Subsequent to the examination or
				analysis, issue an order specifying such corrective actions as the commissioner
				shall determine are required.