Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 8 - Employee Welfare Funds; Employee Benefit Plan Administrators; Small Employer Health Insurance › Subchapter I - Employee Welfare Funds › Section Ins 8.01

Current through June 24, 2024
In the following examples the receipt of a valuable
					 consideration by the party as specified would not appear to be prohibited in
					 the stated circumstances. These examples are not intended to be all-inclusive.
1. Receipt from a fund by a participating employer or
					 labor organization of reasonable compensation for the fair value of necessary
					 services rendered to the fund or for the actual cost of necessary expenses
					 incurred for or on behalf of the fund.
2. Receipt from a fund by a participating employer or
					 labor organization of payment for necessary real property or equipment sold or
					 leased to the fund for use in the operations of the fund in an amount not in
					 excess of the fair market value of such property or equipment at the date of
					 sale or the fair rental value at the date of lease. Any facts known to such an
					 employer or labor organization which would influence such market or rental
					 value must necessarily be considered in determining the fair value at such
					 date.
3. Purchase or lease of real estate or equipment from a
					 fund by a participating employer or labor organization if such purchase or
					 lease is made at arms-length on such terms and conditions as would be required
					 at such time by an independent financial institution or other business
					 organization engaged in such transactions which has knowledge of all facts
					 pertinent thereto which are known by such employer or labor organization. If
					 the terms and conditions required by such organizations cannot be established,
					 the terms and conditions should be equivalent to those which would be granted
					 by any independent vendor or lessor having knowledge of all pertinent facts
					 known to such employer or labor organization and considering both the probable
					 income and probable safety of his or her capital.
4. Receipt by a participating employer or labor
					 organization of a loan from a fund if such loan is made at arms-length
					 according to such terms and conditions, including the rate of interest and
					 duration of the loan and the nature and amount of security pledged therefor, as
					 would be required at such time by an independent financial institution or other
					 business organization engaged in making such loans which has knowledge of all
					 facts pertinent thereto which are known by such employer or labor organization.
5. Receipt by a participating employee of a loan from a
					 fund if such loan would meet the requirements of a loan to a participating
					 employer or labor organization as specified in example 4. above.
6. Purchase of securities or other investments from a fund
					 by a participating employer or labor organization if made for not less than an
					 adequate consideration to the fund. An "adequate consideration" means the price
					 which would be paid at such time by an independent buyer having knowledge of
					 all facts pertinent thereto which are known to such employer or labor
					 organization. Such value may be established by an impartial appraisal of the
					 investment if such value cannot be established by reference to bid and asked
					 prices or by reference to sales prices.
7. Sale of securities or other investments to a fund by a
					 participating employer or labor organization if made for not more than an
					 adequate consideration as defined by example 6. above.
8. Purchase from or sale to a fund by a participating
					 employer of its capital stock if in accord with conditions described in
					 examples 6. and 7. above.