Ins 6.20(8g)(e)2.2. All investments of a single foreign issuer and its foreign issuer affiliates, 3% of assets. Ins 6.20(8g)(e)3.3. All investments denominated in a single foreign currency, 5% of assets excluding investments under par. (f). Ins 6.20(8g)(f)(f) An insurer doing business in a foreign country may invest in assets in that foreign country, or in that country’s currency, that are needed to meet the insurer’s obligations, provided the investment would be permitted if made in this state. Ins 6.20(8g)(g)(g) An insurer are responsible for monitoring their compliance with individual and aggregate limitations on all investments in a foreign country, foreign government, and foreign issuer, including such investments held indirectly through mutual funds, and must maintain a record of all such investments, which shall be reconciled at least quarterly and be available for production upon the request of the commissioner. Ins 6.20(8r)(8r) Derivative instruments. An insurer, and in the case of an insurer that is subject to special restrictions under s. 620.03, Stats., to the extent other rules are applicable to them, may invest in derivative instruments in addition to investments authorized by s. 620.22 (1) to (7), Stats., provided all of the following requirements are met: Ins 6.20(8r)(a)(a) Derivative instrument contracts shall be entered into to protect the investment portfolio of an insurer against the risk of changing asset values or interest rates, to enhance its liquidity, to aid in cash flow management, as a substitute for cash market transactions, and for any other purpose consistent with the investment objectives for the assets of an insurer stated in s. 620.01, Stats. Ins 6.20(8r)(b)(b) The aggregate market value of all derivative instruments outstanding may not exceed 10% of the insurer’s assets. Ins 6.20(8r)(c)(c) An insurer may purchase put options or sell call options only with regard to derivative instruments or financial instruments owned by the insurer, or which may be obtained through the exercise of warrants or conversion rights held by the insurer. Ins 6.20(8r)(d)(d) An insurer may purchase call options or sell put options on derivative instruments or financial instruments only if the amount of the instrument, which may be acquired upon exercise of the option, when aggregated with current holdings, would be an authorized investment under s. 620.22 (1) to (7), Stats., or this subsection, and would not exceed the limitations specified in s. 620.23, Stats., or this section. Ins 6.20(8r)(e)(e) The board of directors or its authorized committee shall first approve the insurer’s plan relating to such investments, which plan must contain specific policy objectives and strategies, establish aggregate maximum limits in such investments and internal control procedures, and identify the duties, expertise and limits of authority of personnel authorized by the board of directors to engage in such transactions on behalf of the insurer. Ins 6.20(8r)(f)(f) A copy of the insurer’s plan shall be filed with the commissioner 30 days prior to its effective date. The commissioner may disapprove the plan within the 30-day period after receipt. Ins 6.20(9)(9) Changes in qualification of investments. Any investment originally made under s. 620.22 (9), Stats., may thereafter be considered as falling within any other class of investment for which it subsequently qualifies. Ins 6.20(10)(a)(a) General. Security valuations contained in “Valuations of Securities”, issued by the Committee on Valuation of Securities of the National Association of Insurance Commissioners, will be followed in implementing this chapter. Ins 6.20(10)(b)(b) Insurance policies. Insurance policies purchased under sub. (8) (g) will be valued at their cash surrender value. Ins 6.20(10)(c)(c) Claims and demands guaranteed by insurer. When an insurer authorized to sell credit insurance purchases, under sub. (8) (h), claims and demands it has guaranteed, it shall value them at face value or at cost, whichever is less, and shall set up a separate and adequate “loss reserve for guaranteed claims purchased” in an amount satisfactory to the commissioner. Ins 6.20 HistoryHistory: Cr. emerg. eff. 5-2-72; cr. Register, July, 1972, No. 199, eff. 8-1-72; am. (5) (a) 1., Register, October, 1974, No. 226, eff. 11-1-74; r. and recr. (5) (g), cr. (6) (c), Register, December, 1974, No. 228, eff. 1-1-75; emerg. am. (6) (a), eff. 6-22-76, am. (6) (a), Register, September, 1976, No. 249, eff. 10-1-76; am. (8) (intro.), (b), (c), (e), (j), (k) and (l), Register, August, 1981, No. 308, eff. 9-1-81; reprinted to correct printing error in (8) (f), Register, March, 1983, No. 327; correction in (9) made under s. 13.93 (2m) (b) 7., Stats., Register, December, 1984, No. 348; renum. (3) (a) to (e) to be (3) (e) to (h) and (j), cr. (3) (a) to (d), (i), (4) (c) and (8) (o), am. (4) (a) and (b) and (8) (n), Register, April, 1987, No. 376, eff. 5-1-87; am. (8) (l), Register, October, 1990, No. 418, eff. 11-1-90; corrections in (4) (b) and (6) (b) 3. made under s. 13.93 (2m) (b) 5. and 7., Stats., Register, April, 1992, No. 436; renum. (3) (f) to (j) to be (3) (g) to (k), cr. (3) (f), (L), (6) (d) to (h), am. (5) (intro.), (6) (a), r. and recr. (5) (g), (6) (b), (c), Register, December, 1996, No. 492, eff. 1-1-97; CR 20-002: r. (3) (a), cr. (3) (am), r. (3) (b), (d), cr. (3) (ee), (em), (es), (hg), (hr), r. (3) (j), am. (4), (5) (intro.), (a) (intro.), r. and recr. (5) (a) 1., am. (5) (a) 2. to 5., cr. (6) (a) (title), am. (6) (b) (intro.), 1. to 5., cr. (6) (b) 5g., 5r., am. (6) (b) 6., (c) (title), 1., 2., cr. (6) (d) (title), r. (6) (d) 3. (intro.), renum. (6) (d) 3. a. to c. to (6) (d) 3c., 3g., 3L and am. (6) (d) 3g., 3L., cr. (6) (d) 3p., 3t., 3x., r. (6) (d) 5., 8., am. (6) (d) 9., cons. (6) (e) (title), (intro.), 1., 2., renum. to (6) (e) and am., r. (6) (e) 3., am. (6) (f) (intro.), 1., cr. (6) (f) 3. to 5., r. and recr. (6) (g), cr. (6) (h) 4., (i), r. (8) (j), (k), (m), (o), cr. (8g), (8r) Register August 2020 No. 776, eff. 9-1-20; correction in (3) (am), (6) (h) 4. c., made under s. 35.17, Stats., Register August 2020 No. 776; republished to correct an error in transcription in (8) and correction in (8) (n) made under s. 35.17, Stats., Register October 2020 No. 778. Ins 6.25Ins 6.25 Joint underwriting and joint reinsurance associations. Ins 6.25(1)(1) Purpose. This section, pursuant to s. 625.04, Stats., is intended to encourage an active, economical and efficient insurance market; to provide for the regulation of marketing practices; and to exempt certain insurers and organizations from the provisions of s. 625.33, Stats., with respect to joint underwriting or joint reinsurance. Ins 6.25(2)(2) Scope. Subsection (3) applies to joint underwriting and joint reinsurance involving the insurance of risks associated with: Ins 6.25(2)(f)(f) Commercial property policies insuring property damage, business interruption, extra expense, rents and other time element coverages, for any policy whose total property damage limit is an amount not less than $50,000,000. Ins 6.25(2)(g)(g) Excess and umbrella liability with limits in excess of $25 million to risks with underlying coverage or self-insured for a minimum of $25 million. Ins 6.25(3)(3) Persons exempted. If any of the following joint underwriting associations and joint reinsurance associations is licensed as a rate service organization under s. 625.32, Stats., each insurer-member thereof shall be exempted from the provisions of s. 625.33, Stats., with respect to agreements between or among insurer-members to adhere to certain rates and rules in providing insurance or reinsurance as members of such association: Ins 6.25(4)(4) Limitation on membership disciplinary action. No person may impose any penalty or other adverse consequence for failure of any insurer to adhere to the rates or rules of any joint underwriting association or joint reinsurance association of which the insurer is a member, except termination of or expulsion of the insurer from membership in the association. Ins 6.25(5)(5) Penalty. Violations of this section shall be subject to s. 601.64, Stats. Ins 6.25 HistoryHistory: Cr. Register, September, 1973, No. 213, eff. 10-1-73; am. (2) and (3), Register, August, 1974, No. 224, eff. 9-1-74; am. (3) (e), Register, May, 1975, No. 233, eff. 6-1-75; am. (3), Register, February, 1976, No. 242, eff. 3-1-76; am. (3) (e), Register, November, 1978, No. 275, eff. 12-1-78; cr. (2) (f), Register, January, 1983, No. 325, eff. 2-1-83; emerg. cr. (2) (g) and (3) (h), eff. 12-12-86; am. (1), (2) (intro.) to (e), (4) and (5), cr. (2) (g) and (3) (h), Register, May, 1987, No. 377, eff. 6-1-87. Ins 6.30Ins 6.30 Instructions for uniform classifications of expenses of fire and marine and casualty and surety insurers. For the purpose of establishing uniformity in classifications of expenses of fire and marine and casualty and surety insurers recorded in statements and reports filed with and statistics reported to the commissioner of insurance, all such insurers shall observe the instructions set forth below. These instructions shall not apply to single line accident and health insurance companies, assessment accident and health associations, hospital and medical service or indemnity organizations, single line title insurance companies, or town mutual insurance companies. Ins 6.30(1)(a)(a) List of operating expense classifications for annual statement purposes for fire and marine and casualty and surety insurers. Ins 6.30(1)(b)(b) Instructions relating to operating expense classifications. Include the following expenses when in connection with the investigation and adjustment of policy claims:
Independent Adjusters: Fees and expenses of independent adjusters or settling agents.
Legal: Fees and expenses of lawyers for legal services in the defense, trial, or appeal of suits, or for other legal services.
Bonds: Premium costs of bonds.
Appeal Costs and Expenses: Appeal bond premiums; charges for printing records; charges for printing briefs; court fees incidental to appeals.
General Court Costs and Fees: Entry fees and other court costs, and other fees not includable in Losses. Note: Interest and costs assessed as part of or subsequent to judgment are includable in Losses.
Medical Testimony: Fees and expenses of medical witnesses for attendance or testimony at trials or hearings (“Medical” includes physicians, surgeons, chiropractors, chiropodists, dentists, osteopaths, veterinarians, and hospital representatives).
Expert Witnesses: Fees and expenses of expert witnesses for attendance or testimony at trials or hearings.
Lay Witnesses: Fees and expenses of lay witnesses for attendance or testimony at trials or hearings.
Service of Process: Constables’, sheriffs’ and other fees and expenses for service of process, including subpoenas.
Transcripts of Testimony: Stenographers’ fees and fees for transcripts of testimony.
Medical Examinations: Fees for medical examinations, fees for performing autopsies, fees for impartial examination, x-rays, etc., for the purpose of trial and determining questions of liability. This does not include fees for medical examinations, x-rays, etc., made to determine necessary treatment, or made solely to determine the extent or continuation of disability, or first aid charges, as such fees and charges are includable in Losses.
