6. List with description of all entities that may be affected by the proposed rule:
The proposed changes to Ins 2.02 and 2.04, will apply to all licensed stock life insurers who issue participating life insurance policies in Wisconsin. The proposed investment rules will apply to all domestic insurers. Non-domestic insurers authorized to do business in this state would be subject to the investment rules of their state of domicile.
7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
The office is unaware of any proposed or existing federal laws or regulations that are intended to address the activities to be regulated by the proposed rule changes.
8. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
The rule is unlikely to have a significant economic impact on small businesses. Only a few town mutual insurers would potentially meet the definition of small businesses and for those that do the rule is intended to change the investments they may invest in. The town mutual insurers costs incurred to invest will depend on their contractual arrangements with investment professionals and should not be negatively affected by this rule.
In addition, the proposed rule change is expected to have no economic impact with regard to regulatory costs as the proposed rule change only changes the type of investments that may be counted toward compulsory and security surplus requirements. It does not affect the required amount of that surplus or add additional regulatory requirements. The proposed changes regarding derivative investments should have little or no economic impact and cause little or no increase in regulatory costs.
The proposed changes to Ins 2.02 and 2.04 will have no economic impact as stock life insurers are already following the dividend requirements in s. 632.62, Stats., and are not exceeding filed rates for substandard risks.
Department Head or Authorized Signature
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