SB588: Bill Text

SB588,9,2 632.62 (1) (b) 1. Paid-up, temporary, pure endowment insurance and annuity settlements provided in exchange for lapsed, surrendered or matured policies;.

SB588,17 Section 17 . 632.62 (1) (b) 2. of the statutes is amended to read:

SB588,9,5 632.62 (1) (b) 2. Annuities beginning within one year of the making of the contract; and.

SB588,18 Section 18. 632.62 (1) (b) 4. of the statutes is created to read:

SB588,9,7 632.62 (1) (b) 4. Funding agreements authorized under s. 632.66.

SB588,19 Section 19 . 632.66 of the statutes is renumbered 632.66 (1).

SB588,20 Section 20. 632.66 (2) of the statutes is created to read:

SB588,9,14 632.66 (2) (a) In this subsection, “funding agreement” means an annuity without life contingencies that is an agreement for an insurer to accept and accumulate funds and to make one or more payments at future dates in fixed or variable amounts, or both, that are not based on mortality or morbidity contingencies.

SB588,9,17 (b) A domestic insurer that holds a valid certificate of authority to transact the business of life insurance and annuities in this state may issue a funding agreement if all of the following conditions are met:

SB588,9,19 1. The domestic insurer's board of directors, or an authorized committee of the board, approves the domestic insurer's plan relating to funding agreements.

SB588,9,24 2. The commissioner determines that the issuance of funding agreements by the domestic insurer is not adverse to the interests of the policyholders of the domestic insurer, except that no determination from the commissioner is required if the domestic insurer has more than $200 billion in admitted assets. In making a determination under this subdivision, the commissioner shall consider the domestic insurer's specific policy objective and strategies, investment and risk management guidelines, and aggregate maximum limits on the funding agreement business.

SB588,10,5 3. No amounts may be guaranteed or credited under the funding agreement except upon reasonable assumptions as to investment income and expenses and on a basis equitable to all holders of a given class of the funding agreement.

SB588,10,7 4. The domestic insurer complies with the form filing requirements under s. 631.20 with respect to the funding agreement.

SB588,10,9 (c) The issuance or delivery of a funding agreement by an insurer in this state shall constitute doing an insurance business herein.

SB588,10,12 (d) A domestic insurer may offer funding agreements directly through the domestic insurer and is not required to use licensed intermediaries when marketing funding agreements.

SB588,10,15 (e) Amounts paid to the domestic insurer, and proceeds applied under optional modes of settlement, under funding agreements may be allocated to one or more separate accounts pursuant to s. 611.24.

SB588,10,18 (f) Notwithstanding ch. 551, the commissioner has sole authority to regulate the issuance and sale of funding agreements, including the persons selling funding agreements on behalf of insurers.

SB588,10,22 (g) Notwithstanding s. 601.465 (1m) and subch. II of ch. 19, any materials submitted to the commissioner pursuant to an approval under par. (b) 2. or pursuant to a request from the commissioner related to a funding agreement shall be held confidential pursuant to s. 601.465 (1n).

SB588,10,24 (h) The commissioner may promulgate rules as necessary for the implementation of this subsection.

SB588,21 Section 21 . 635.05 (7) of the statutes is repealed.

SB588,22 Section 22. 635.12 of the statutes is repealed.

SB588,23 Section 23 . 645.68 (3) of the statutes is amended to read:

SB588,11,11 645.68 (3) Loss claims. All claims under policies for losses incurred, including 3rd-party claims and federal, state, and local government claims, except the first $200 of losses otherwise payable to any claimant under this subsection other than the federal government. All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims. All amounts payable under funding agreements, as defined in s. 632.66 (2) (a), whether for principal or interest, shall be treated as loss claims. Claims may not be cumulated by assignment to avoid application of the $200 deductible provision.

SB588,24 Section 24. 646.01 (1) (b) 21. of the statutes is created to read:

SB588,11,16 646.01 (1) (b) 21. A policy issued by an insurer to the federal government or an agency of the federal government for the purpose of providing health insurance coverage to enrollees under the federal employee health benefit plan program under 5 USC 8901 et seq.

SB588,25 Section 25. 646.01 (1) (b) 22. of the statutes is created to read:

SB588,11,18 646.01 (1) (b) 22. Funding agreements authorized under s. 632.66.

SB588,26 Section 26 . 646.13 (2) (g) of the statutes is amended to read:

SB588,11,25 646.13 (2) (g) Sue and be sued, make contracts, including a contract with an insured for administration and payment of claims for which the insured is responsible, and borrow money necessary to carry out its duties, including money with which to pay claims under s. 646.31 or to continue coverage under s. 646.35. The fund may offer as security for such loans its claims against the liquidator or its power to levy assessments under this chapter.

SB588,27 Section 27. 646.325 (2) (intro.) of the statutes is amended to read:

SB588,12,6 646.325 (2) Recovery from certain insureds and affiliates. (intro.) Except as provided in sub. (3), the fund may recover from a person the costs and expenses incurred in administering or defending a claim against the person by a 3rd party and the amount of any claim paid on behalf of the person to a 3rd party, if all of the following conditions are satisfied:

SB588,28 Section 28 . 646.325 (2) (a) (intro.) of the statutes is amended to read:

SB588,12,9 646.325 (2) (a) (intro.) The person on whose behalf the claim was administered, defended, or paid is any of the following:

SB588,29 Section 29. 646.325 (2) (a) 3. of the statutes is created to read:

SB588,12,11 646.325 (2) (a) 3. A person excluded under s. 646.01 (1) (b) 18.

SB588,30 Section 30 . 646.51 (3) (ar) (intro.) and 2. of the statutes are consolidated, renumbered 646.51 (3) (ar) and amended to read:

SB588,12,23 646.51 (3) (ar) Disability. Except as provided in par. (c), with respect to disability insurance policies, including policies issued by health maintenance organization insurers, assessments shall be calculated as follows: 2. For assessments authorized by the board on or after November 13, 2015, as a percentage of premium written in this state by each insurer in the classes protected by the accounts for the year preceding the year in which the assessment is authorized by the board. If the assessment data for the year immediately preceding the year in which the assessment is authorized by the board is not available when the assessment is called, the fund may use the assessment data for the most recent year for which data is available.

SB588,31 Section 31 . 646.51 (3) (ar) 1. of the statutes is repealed.

SB588,32 Section 32 . 655.27 (3) (b) 2. of the statutes is amended to read:

SB588,13,6 655.27 (3) (b) 2. With respect to fees paid by physicians, the commissioner shall provide for no fewer than 4 payment classifications, based upon the amount of surgery performed and the risk of diagnostic and therapeutic services provided or procedures performed, by reference to the applicable Insurance Services Office, Inc., codes for specialties and types of practice that are similar in the degree of exposure to loss.

SB588,33 Section 33 . 655.27 (3) (bt) of the statutes is amended to read:

SB588,13,23 655.27 (3) (bt) Report to joint committee on finance. Annually, no later than April 1, the commissioner shall send to the cochairpersons of the joint committee on finance a report detailing the proposed fees and payment classifications set for the next fiscal year under par. (b) and under s. 655.61 (1). If, within 14 working days after the date that the commissioner submits the report, the cochairpersons of the committee notify the commissioner that the committee has scheduled a meeting for the purpose of reviewing the proposed fees and payment classifications, the commissioner may not impose the fees or payment classifications until the committee approves the report. If the cochairpersons of the committee do not notify the commissioner, the commissioner may impose the proposed fees and payment classifications. In addition to any other method prescribed by rule for advising health care providers of the amount of the fees and payment classifications, the commissioner shall post the fees and payment classifications set under par. (b) for the next fiscal year on the office's Internet site and the director of state courts shall post the fees set under s. 655.61 (1) for the next fiscal year on the mediation fund's Internet site.

SB588,34 Section 34 . 655.275 (2) of the statutes is amended to read:

SB588,14,11 655.275 (2) Appointment. The board of governors shall appoint the members of the council. Section 15.09, except s. 15.09 (4) and (8), does not apply to the council. The board of governors shall designate the chairperson, who shall be a physician, the vice chairperson, and the secretary of the council and the terms to be served by council members. The council shall consist of 5 or 7 persons, not more than 3 of whom are physicians who are licensed and in good standing to practice medicine in this state and one of whom is a nurse anesthetist who is licensed and in good standing to practice nursing in this state. The chairperson or another peer review council member designated by the chairperson shall serve as an ex officio nonvoting member of the medical examining board and may attend meetings of the medical examining board, as appropriate.

SB588,35 Section 35. Effective dates. This act takes effect on the day after publication, except as follows:

SB588,14,16 (1) Notice of cybersecurity event. The treatment of s. 601.954 (2) (f) (intro.), 1., and 2. takes effect on November 1, 2021, or the day after publication, whichever is later.

SB588,14,17 (End)