Ins 17.50(7)(b)
(b) If the provider is not a natural person, a certified copy of an executed resolution adopted by the provider's governing body approving the self-insured plan and trust agreement.
Ins 17.50(7)(c)
(c) A certified copy of any trust investment policy adopted by the provider or the provider's governing body.
Ins 17.50(7)(d)
(d) The trustee's certification that the initial amount of cash required under sub.
(6) has been deposited in the trust.
Ins 17.50(7)(e)
(e) A certified copy of any letter of credit held by the trustee.
Ins 17.50(7)(f)
(f) If any part of the operation of the self-insured plan is conducted by a person other than the provider or an employee, partner or shareholder of the provider, a certified copy of an executed contract with each such person.
Ins 17.50(8)(a)
(a) Within 120 days after the end of a year, the self-insured plan shall submit to the office all of the following:
Ins 17.50(8)(a)1.
1. Actuarial estimates of the projected liabilities for the current year and of the total liabilities for all prior years covered by the self-insured plan and the risk margin for all projected and incurred claims, and an actuarial opinion of the reasonableness of the estimates.
Ins 17.50(8)(a)2.
2. A description of the proposed method of funding for the current year.
Ins 17.50(8)(b)
(b) Within 60 days after the end of each quarter, the self-insured plan shall submit to the office the most recent quarterly financial statement of the trust.
Ins 17.50(9)(a)
(a) After a self-insured plan begins operation, the provider shall report to the office any proposed change in the self-insured plan document, trust agreement, trust investment policy, letter of credit or any other document on file with the office if the change would materially affect the operation of the self-insured plan or its funding. No proposed change may take effect without the written approval of the office.
Ins 17.50(9)(b)
(b) The provider shall annually file with the patients compensation fund proof of financial responsibility under s.
655.23, Stats., in the form specified by the office. The provider shall also file proof of financial responsibility on behalf of each natural person covered under sub.
(3) (b).
Ins 17.50(9)(c)
(c) The provider shall immediately notify the patients compensation fund if either of the following occurs:
Ins 17.50(9)(c)1.
1. A claim filed with the self-insured plan has a reserve of 50% or more of the limit specified in s.
655.23 (4), Stats., for one occurrence.
Ins 17.50(9)(c)2.
2. The self-insured plan's total aggregate reserves for the provider or for any natural person covered under sub.
(3) (b) for a single year exceed 66% of the limit specified in s.
655.23 (4), Stats., for all occurrences in one year.
Ins 17.50(9)(c)3.
3. A claim filed with the self-insured plan creates potential exposure for the patients compensation fund, regardless of the amount reserved.
Ins 17.50(9)(d)
(d) The provider shall ensure that all claims paid by the self-insured plan are reported to the medical examining board and the board of governors of the patients compensation fund as required under s.
655.26, Stats.
Ins 17.50(10)
(10) Discounting prohibited. All actuarial estimates required under this section shall be reported on a nondiscounted basis.
Ins 17.50(11)(a)
(a) The risk margin used in determining the initial funding under sub.
(6) shall be at not less than a 90% level of confidence and, except as provided in pars.
(b) and
(c), shall remain at that level.
Ins 17.50(11)(b)
(b) After a self-insured plan has operated for at least 5 years and experience can be reasonably predicted, the office may permit the use of a risk margin of less than a 90%, but not less than a 75%, level of confidence in determining annual funding of the trust. For at least 5 years after such permission is granted, the provider shall fund the difference between the cash required at the lower level of confidence and the 90% level of confidence with funds restricted by the provider or the provider's governing body for the purpose of paying obligations of the self-insured plan. The restricted funds may be part of the provider's operating budget rather than assets of the trust.
Ins 17.50(11)(c)
(c) After a self-insured plan has operated for at least 5 years under par.
(b), the office may permit the use of a risk margin of not less than a 75% level of confidence without additional restricted funds if the self-insured plan's actuary states that the self-insured plan's exposure base is stable enough to estimate the required liabilities.
Ins 17.50(12)(a)
(a) If the office determines that a self-insured plan's operation does not ensure that the provider can continue to satisfy the conditions specified in sub.
(5) (a), the commissioner may order the provider to take any action necessary to ensure compliance with those conditions.
Ins 17.50(12)(b)
(b) If the provider does not comply with the commissioner's order within the time specified in the order, the commissioner may order the provider to terminate the self-insured plan and the office may take whatever action is necessary to ensure the continued existence of the trust for a sufficient length of time to meet all of the obligations of the self-insured plan.
Ins 17.50(13)
(13) Existing self-insured plans; compliance. After this section takes effect, the office may review any approved self-insured plan to determine if it complies with this section. If the office determines that any self-insured plan is not in compliance, the commissioner may order the provider to take any action necessary to achieve compliance.
Ins 17.50 History
History: Cr.
Register, December, 1989, No. 408, eff. 1-1-90;
CR 16-024: cr. (2) (am), am. (2) (e), (4) (L), (m), (6) (title), cr. (6) (c) (intro.), am. (6) (c) 1., cr. (6m)
Register September 2016 No. 729, eff. 10-1-16.
