AB688,7,2120 (b) The local governmental unit is contractually liable in the event that the
21building or structure is damaged or destroyed.
AB688,7,2322 (c) The building or structure is in the local governmental unit's care, custody,
23or control.
AB688,7,2424 (d) The building or structure is used for a legitimate governmental purpose.
AB688, s. 12 25Section 12. 605.21 (4) of the statutes is amended to read:
AB688,8,3
1605.21 (4) Insurance of personal property. All personal property of the local
2governing unit is insured and premiums therefor must be paid under this section
3except to the extent that coverage is excluded by resolution under s. 605.02 (1).
AB688, s. 13 4Section 13. 611.26 (3) (a) of the statutes is amended to read:
AB688,8,85 611.26 (3) (a) Authorization. An insurance corporation may form or acquire
6subsidiaries to perform functions or provide services that are ancillary to its
7insurance operations. It may have up to 10% of its assets invested in such
8subsidiaries, unless the commissioner by order or rule provides otherwise.
AB688, s. 14 9Section 14. 611.26 (4) (a) of the statutes is amended to read:
AB688,8,1110 611.26 (4) (a) Invest in a subsidiary one or more subsidiaries more than 10
11percent of its assets or 50 percent of its capital and surplus, whichever is less.
AB688, s. 15 12Section 15. 611.26 (4) (b) of the statutes is amended to read:
AB688,8,1613 611.26 (4) (b) Invest in a subsidiary one or more subsidiaries to the extent that
14the insurer's capital and surplus with regard to policyholders will not be reasonable
15in relation to the insurer's outstanding liabilities or adequate to meet the insurer's
16financial needs.
AB688, s. 16 17Section 16. 611.72 (2) of the statutes is amended to read:
AB688,8,2218 611.72 (2) Approval required. No proposed plan of merger under s. 180.1101
19or 180.1104 or other plan for acquisition of control may be submitted to the
20shareholders
of any domestic stock insurance corporation or its parent insurance
21holding corporation participating in the transaction or may be executed unless it has
22been approved by the commissioner.
AB688, s. 17 23Section 17. 631.61 (1) (c) of the statutes is renumbered 631.61 (1) (c) (intro.)
24and amended to read:
AB688,9,11
1631.61 (1) (c) Method of providing certificates. (intro.) The certificate shall be
2provided in a manner reasonably calculated to bring it to the attention of the
3certificate holder. The insurer may deliver or mail it directly to the certificate holder
4or may deliver or mail the certificates in bulk to the policyholder to transmit to
5certificate holders, unless the insurer has reason to believe that the policyholder will
6not promptly transmit the certificates. An affidavit by the insurer that it has mailed
7the certificates in the usual course of business creates a rebuttable presumption that
8it has done so. As an alternative to delivering or mailing the certificate, the insurer
9may make the certificate available electronically through an online internet or
10policyholder network Web site. If the insurer makes the certificate available
11electronically, the insurer shall do all of the following:
AB688, s. 18 12Section 18. 631.61 (1) (c) 1. of the statutes is created to read:
AB688,9,1713 631.61 (1) (c) 1. Request the policyholder to post the information, as well as
14instructions on how to access the certificate, in the policyholder's place of business
15or to publish the information and access instructions in a house organ that is
16reasonably calculated to bring the information to the attention of the certificate
17holders.
AB688, s. 19 18Section 19. 631.61 (1) (c) 2. of the statutes is created to read:
AB688,9,2119 631.61 (1) (c) 2. Provide notice to the policyholder of any subsequent change
20in the certificate and request the policyholder to notify the certificate holders of the
21change in the manner specified in subd. 1.
AB688, s. 20 22Section 20. 631.61 (1) (c) 3. of the statutes is created to read:
AB688,9,2423 631.61 (1) (c) 3. Provide a paper copy of the certificate to any certificate holder
24upon request.
AB688, s. 21 25Section 21. 632.07 of the statutes is created to read:
AB688,10,5
1632.07 Prohibiting requiring property insurance in excess of
2replacement value.
A lender may not require a borrower, as a condition of
3receiving or maintaining a loan secured by real property, to insure the property
4against risks to improvements on the real property in an amount that exceeds the
5replacement value or market value of the improvements, whichever is less.
AB688, s. 22 6Section 22. 632.745 (18) (b) of the statutes is amended to read:
AB688,10,77 632.745 (18) (b) A special enrollment period under s. 632.746 (6) or (7).
AB688, s. 23 8Section 23. 646.01 (1) (b) 14. of the statutes is amended to read:
AB688,10,139 646.01 (1) (b) 14. A policy issued by an insurer to , or a contract entered into by
10an insurer with, a care management organization, as defined in s. 46.2805 (1), or
the
11department of health and family services or any other governmental entity under s.
1249.45 (2) (b) 2.
any state law to provide prepaid health care to medical assistance
13recipients.
AB688, s. 24 14Section 24. 646.11 (4) of the statutes is amended to read:
AB688,10,1815 646.11 (4) Liability. No contributor to the fund or, person acting on its the
16fund's
behalf, insurer representative on the board, or alternate representative
17designated under s. 646.12 (1) (a) 3.
is personally liable for any obligations of the
18fund. The rights of creditors are solely against the assets of the fund.
AB688, s. 25 19Section 25. 646.11 (5) of the statutes is amended to read:
AB688,10,2520 646.11 (5) Immunity. No cause of action of any nature may arise against and
21no liability may be imposed upon the fund or its agents, employees, directors,
22including alternate representatives designated under s. 646.12 (1) (a) 3.,
or
23contributor insurers, or the commissioner or the commissioner's agents, employees,
24or representatives, for any act or omission by any of them in the performance of their
25powers and duties under this chapter.
AB688, s. 26
1Section 26. 646.12 (1) (a) of the statutes is renumbered 646.12 (1) (a) 1. and
2amended to read:
AB688,11,133 646.12 (1) (a) 1. The fund shall be administered by a board of directors which
4that shall consist of not fewer than 7 nor more than 14 members. The the attorney
5general, the state treasurer, and the commissioner are members with, each of whom
6shall have
full voting rights. Other members shall be chosen from representatives
7of insurers subject to this chapter under procedures specified by the commissioner
8by rule, provided that one member is a representative of a service insurance
9corporation. The rule may provide that, instead of natural persons, specific insurers
10or associations of insurers may be selected as members of the board and may act
11through any duly authorized representative
, and at least 9 but not more than 11
12insurer representatives of domestic, foreign, and alien insurers subject to this
13chapter
.
AB688, s. 27 14Section 27. 646.12 (1) (a) 2. of the statutes is created to read:
AB688,11,2115 646.12 (1) (a) 2. The commissioner shall appoint the insurer representative
16members for 3-year terms, after considering recommendations of the other board
17members currently serving terms. In recommending candidates to fill the positions,
18the board shall consider whether all insurers subject to this chapter are fairly
19represented, including property and casualty insurers, life and health insurers,
20health maintenance organizations and service insurance corporations, and domestic
21and nondomestic insurers.
AB688, s. 28 22Section 28. 646.12 (1) (a) 3. of the statutes is created to read:
AB688,12,223 646.12 (1) (a) 3. Each appointed insurer representative may designate an
24alternate representative to represent the insurer at any meeting of the board. Any

1person serving as an alternate representative shall, while serving, have all of the
2powers and responsibilities of the appointed insurer representative.
AB688, s. 29 3Section 29. 646.12 (1) (b) of the statutes is amended to read:
AB688,12,64 646.12 (1) (b) Chairperson. The person to chair the board shall be elected by
5the members of the board under a rule promulgated by the commissioner annually
6at the first meeting after June 1
.
AB688, s. 30 7Section 30. 646.12 (2) (a) of the statutes is amended to read:
AB688,12,108 646.12 (2) (a) Subject to the commissioner's power to promulgate rules under
9sub. (1), adopt
Adopt rules for the administration of this chapter, including
10delegation of any part of its powers and its own procedures.
AB688, s. 31 11Section 31. 646.13 (3) (d) of the statutes is created to read:
AB688,12,1612 646.13 (3) (d) Except for claims under life insurance policies, annuities, or
13noncancelable or guaranteed renewable disability insurance policies, and except for
14claims determined to be excused late filings as provided in pars. (a) and (b), if no date
15for filing is set by the liquidator or court, with a liquidator or court after 18 months
16after the order of liquidation is entered.
AB688, s. 32 17Section 32. 646.31 (11) of the statutes is renumbered 646.31 (11) (b) and
18amended to read:
AB688,13,219 646.31 (11) (b) The An insurance entity may not assert a claim against the fund
20is not required to pay for any amount due from the insurer to any reinsurer, insurer,
21insurance pool or underwriting association
the insurance entity as subrogation,
22contribution, or indemnification recoveries or otherwise, except as provided in sub.
23(2) (a). A reinsurer, insurer, insurance pool or underwriting association An
24insurance entity
that has paid a claim and thereby has become subrogated or
25otherwise entitled to the amount of that claim may assert that claim against the

1liquidator of the insurer in liquidation but not against the insured of the insurer in
2liquidation.
AB688, s. 33 3Section 33. 646.31 (11) (a) of the statutes is created to read:
AB688,13,44 646.31 (11) (a) In this subsection:
AB688,13,55 1. "Health care costs" has the meaning given in s. 609.01 (1j).
AB688,13,76 2. "Insurance entity" means a reinsurer, an insurer, an insurance pool, or an
7underwriting association.
AB688, s. 34 8Section 34. 646.31 (11) (c) of the statutes is created to read:
AB688,13,109 646.31 (11) (c) Notwithstanding par. (b), an insurance entity may assert a claim
10against the fund for health care costs if all of the following conditions are met:
AB688,13,1211 1. The insurance entity paid the claim for health care costs under a disability
12insurance policy issued by the insurance entity.
AB688,13,1513 2. The insurance entity is not obligated to pay the health care costs under the
14express terms of the disability insurance policy because the claim arose out of, or in
15the course of, the claimant's employment.
AB688,13,1716 3. The claim is covered by a worker's compensation insurance policy and would
17otherwise be an eligible claim under this section.
AB688, s. 35 18Section 35. 646.33 (3) of the statutes is renumbered 646.33 (3) (a).
AB688, s. 36 19Section 36. 646.35 (4) (a) of the statutes is renumbered 646.35 (4).
AB688, s. 37 20Section 37. 646.35 (4) (b) of the statutes is renumbered 646.33 (3) (b).
AB688, s. 38 21Section 38. 646.35 (6) (c) 1. (intro.) and b. of the statutes are consolidated,
22renumbered 646.35 (6) (c) 1. and amended to read:
AB688,14,523 646.35 (6) (c) 1. Any benefit payment liability, arising on or after the date of
24entry of the order of liquidation, to the extent that the rate of interest on which it is
25based or the interest rate, crediting rate, or similar factor determined by use of an

1index or other external reference stated in the policy or contract and employed in
2calculating returns or changes in value exceeds the smaller of the following: b. The
3rate of interest, which may not be less than zero, determined by subtracting 3
4percentage points from the monthly corporate bond yield average, as most recently
5published by Moody's investors service or its successor.
AB688, s. 39 6Section 39. 646.35 (6) (c) 1. a. of the statutes is repealed.
AB688, s. 40 7Section 40. 646.35 (6) (c) 2. (intro.) and b. of the statutes are consolidated,
8renumbered 646.35 (6) (c) 2. and amended to read:
AB688,14,159 646.35 (6) (c) 2. Any benefit payment liability, arising before the date of entry
10of the order of liquidation, to the extent that the payment exceeds the smaller of the
11following: b. The
rate of interest, which may not be less than zero, determined by
12subtracting 2 percentage points from the monthly corporate bond yield average, as
13published by Moody's investors service or its successor, when averaged over the
144-year period ending on the date of entry of the order of liquidation or averaged over
15such lesser period if the contract was issued less than 4 years before that date.
AB688, s. 41 16Section 41. 646.35 (6) (c) 2. a. of the statutes is repealed.
AB688, s. 42 17Section 42. 646.51 (3) (am) (intro.) of the statutes is amended to read:
AB688,14,1918 646.51 (3) (am) General. (intro.) Except as provided in par. pars. (b) and (c),
19assessments shall be calculated as follows:
AB688, s. 43 20Section 43. 646.51 (3) (b) of the statutes is created to read:
AB688,15,221 646.51 (3) (b) Life and health. Except as provided in par. (c), with respect to
22annuity contracts or life or disability insurance policies, including policies issued by
23health maintenance organizations, assessments shall be calculated as a percentage
24of average annual premium received in this state by each insurer in the classes

1protected by the accounts for the 3 most recent years preceding the year of the entry
2of the order of liquidation.
AB688, s. 44 3Section 44. 646.51 (4) (a) of the statutes is amended to read:
AB688,15,94 646.51 (4) (a) Subject to pars. (b) and (d), the total of all assessments for an
5amount authorized by the board under this section with respect to an insurer may
6not, in one calendar year, exceed 2% 2 percent of the insurer's average annual
7assessable premiums received in this state, during the 3 calendar years preceding
8the year of entry of the order of liquidation,
under sub. (3) (am) or (b) on the types
9of policies and contracts that are covered by the account.
AB688, s. 45 10Section 45. 2003 Wisconsin Act 261, section 162 (1) is amended to read:
AB688,15,1111[2003 Wisconsin Act 261] Section 162 (1) Insurance security fund.
AB688,16,4 12(a) The treatment of sections 609.98 (1) and (4) (a) and (b), 645.58 (1) (intro.),
13646.01 (1) (a) 2. k. and L. and (b) 1., 9. (intro.), a., b., c., and d., 11., 11m., 15., 16., and
1417., and 18., 646.03 (1m), (2n), (2p), (4), and (5), 646.12 (2) (d) and (f) 2. and 3. and
15(4), 646.13 (title), (1) (intro.) and (b), (2) (intro.), (b), (c), (d), and (g), (3) (intro.), (a),
16(b), and (c) (intro.) and 2., and (4), 646.15 (title) and (1) (a) (intro.), 1., 2., and 4.,
17646.16, 646.21 (2), 646.31 (1) (d) 10. and 11., (2) (a) 1. and 2., (b) 1., 2. (intro.), a., and
18b., and 3., (f) (title) and 2., and (g), (3), (5), (6) (a) and (b), (7), (8), (9) (a), (b), (c), (cm),
19and (d), and (11), 646.32 (1), 646.325 (1) and (2) (intro.), (a) (intro.), and (b), 646.33
20(2), (2m) (b), and (3), 646.35 (2), (3) (title), (intro.) (except 646.35 (3) (title)), (a), (b),
21and (c), (5), (6) (a), (b), (bm), and (c) (intro.), 1. (intro.) and b., and 2. (intro.) and b.,
22(7), (8), (9), and (10), 646.51 (1), (1c), (2), (3) (a) (title), 1., and 2., (am) 2., (b), and (c),
23(5), (6), (7) (a), (8), and (9) (b) 1. and 2., 646.60 (1) (a), 646.61 (2), and 646.73 of the
24statutes, the renumbering and amendment of sections 646.11 (1), 646.31 (10) and
25(13), 646.33 (1), 646.35 (4), and 646.51 (4) of the statutes, and the creation of sections

1646.11 (1) (d) and (e), 646.31 (10) (b) and (13) (b), (c), and (d), 646.33 (1) (b), (c), and
2(d), 646.35 (4) (b), and 646.51 (4) (a), (b), and (d) of the statutes first apply to
3insurance company liquidations commenced or pending on the effective date of this
4paragraph.
AB688,16,7 5(b) The treatment of section 646.01 (1) (b) 18. of the statutes first applies to
6liquidation proceedings in which a liquidation order is issued on the effective date
7of this subsection paragraph.
AB688, s. 46 8Section 46. Nonstatutory provisions.
AB688,16,139 (1) Board of directors of insurance security fund. Notwithstanding section
10646.12 (1) (a) of the statutes, as affected by this act, each insurer representative
11member of the board of directors of the insurance security fund who is serving on the
12effective date of this subsection shall continue in that capacity until he or she resigns
13or his or her term expires, whichever occurs first.
AB688,16,1614 (2) Coverage of employers and plan sponsors. The treatment of section 600.03
15(25) (a) 4. of the statutes, as created by this act, applies to coverage of employers and
16plan sponsors issued prior to, on, or after the effective date of this subsection.
AB688, s. 47 17Section 47 . Initial applicability.
AB688,16,2318 (1) Insurance security fund. The treatment of sections 646.13 (3) (d), 646.33
19(3), 646.35 (4) (a) and (b) and (6) (c) 1. (intro.), a., and b. and 2. (intro.), a., and b., and
20646.51 (3) (am) (intro.) and (b) and (4) (a) of the statutes, the renumbering and
21amendment of section 646.31 (11) of the statutes, and the creation of section 646.31
22(11) (a) and (c) of the statutes first apply to insurance company liquidations
23commenced or pending on the effective date of this subsection.
AB688,17,3
1(2) Restriction on property insurance. The treatment of section 632.07 of the
2statutes first applies to property insurance coverage required by a lender on the
3effective date of this subsection.
AB688,17,64 (3) Action to recover fees, taxes, and assessments. The treatment of section
576.68 (2) and (4) of the statutes first applies to fees, taxes, and assessments that are
6due and payable on the effective date of this subsection.
AB688,17,77 (End)
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