2017 - 2018 LEGISLATURE
ASSEMBLY AMENDMENT 1,
TO ASSEMBLY BILL 110
March 10, 2017 - Offered by Representative Steffen.
101.654 (2) (a) 2. of the statutes is renumbered 101.654 (2) (a) 2. 4
(intro.) and amended to read:
(a) 2. (intro.) A policy of general liability insurance issued by an
6insurer authorized to do business in this state
insuring the applicant in the amount 7
of at least $250,000 per occurrence because of bodily injury to or death of others or 8
because of damage to the property of others.
and issued by one of the following:
101.654 (2) (a) 2. a. of the statutes is created to read:
(a) 2. a. An insurer authorized to do business in this state.
101.654 (2) (a) 2. b. of the statutes is created to read:
(a) 2. b. An insurer that is eligible to provide insurance as a surplus 13
lines insurer in one or more states.
611.02 (1) (a) of the statutes is amended to read:
(a) Domestic insurers.
This chapter applies to all insurance 3
corporations, including domestic surplus lines insurers, as defined in s. 618.40 (3m), 4
organized under the laws of this state, except those expressly governed by other 5
611.20 (5) of the statutes is created to read:
611.20 (5) Domestic surplus lines insurance.
The commissioner may issue to 8
a domestic insurer a certificate of authority to do business in this state as a domestic 9
surplus lines insurer, as defined in s. 618.40 (3m).”.
618.41 (1) of the statutes is amended to read:
618.41 (1) General permission.
A domestic surplus lines insurer or a 13
nondomestic insurer which has not obtained a certificate of authority to do business 14
in this state under s. 618.12 may negotiate for and make insurance contracts with 15
persons in this state and on risks located in this state, subject to the limitations and 16
requirements specified in this section.
618.41 (3) of the statutes is amended to read:
618.41 (3) Solicitation prohibited.
Nothing in subs. (1) and (2) permits the 19
solicitation of business in this state by or on behalf of an insurer without a certificate 20
of authority. The commissioner may by rule prescribe the manner in which 21
insurance agents or brokers may advertise the availability of their services in 22
procuring, on behalf of persons seeking insurance, contracts with
23lines insurers or with
insurers without a certificate of authority.”.
“4. If the insurer applying for a certificate under this subsection has issued 2
insurance policies in this state as a domestic insurer, the insurer includes in its 3
application a plan for the insurer's proposed treatment of those policies in 4
compliance with chs. 600 to 655.”.
“(b) A domestic surplus lines insurer is subject to chs. 600 to 655 as follows:
1. A domestic surplus lines insurer is subject to all requirements of this 8
subchapter and the requirements that apply to a domestic insurer organized under 9
2. Notwithstanding subd. 1., a surplus lines insurance policy issued in this 11
state by a domestic surplus lines insurer is only subject to the requirements of this 12
section and the rules promulgated under this section and shall be exempt from all 13
statutory requirements, including requirements relating to insurance rating plans, 14
policy forms, policy cancellation and nonrenewal, and premium charged to the 15
insured, in the same manner as a surplus lines insurance policy issued by a 16
3. Nothing in this section shall be construed to affect the application of ch. 646 18
to insurance policies that were issued by a domestic insurer prior to that domestic 19
insurer obtaining a certificate to do business as a domestic surplus lines insurer 20
under this subsection.”.
“(g) A domestic surplus lines insurer, after obtaining a certificate to do business 23
as a domestic surplus lines insurer under this section, may not apply to the 24
commissioner to issue policies other than as a domestic surplus lines insurer.”.
(1) The renumbering and amendment of section 101.654 (2) (a) 2. of the statutes 4
and the creation of section 101.654 (2) (a) 2. a. and b. of the statutes first apply to an 5
application for a certificate of financial responsibility submitted to the department 6
of safety and professional services on the effective date of this subsection.”.