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SB588,12 7Section 12. 611.42 (1g) of the statutes is created to read:
SB588,6,108 611.42 (1g) Notice of meetings. (a) When required. A mutual shall give notice
9of meetings of policyholders as provided in its bylaws or, if the bylaws are silent, in
10a manner that is fair and reasonable.
SB588,6,1411 (b) In general. A notice that conforms to the requirements of par. (c) is fair and
12reasonable. Except for matters referred to in par. (c) 2., other means of giving notice
13may also be fair and reasonable when all of the circumstances are considered.
14Section 181.0141 applies to notices provided under this subsection.
SB588,6,1615 (c) Notice safe harbor. Notice is fair and reasonable if all of the following
16conditions exist:
SB588,6,2217 1. The mutual notifies its policyholders of the date, time, and, if applicable,
18place of each annual, regular, and special meeting of policyholders not more than 60
19days and not less than 10 days, or, if notice is mailed by any type other than first class
20or registered mail, 30 days, before the meeting date. If the board of directors has
21authorized participation by means of remote communication under s. 611.426, the
22notice shall describe the means of remote communication to be used.
SB588,6,2523 2. Notice of an annual or regular meeting includes a description of any matter
24or matters that must be approved by the policyholders under s. 181.0723 (2),
25181.0831, 181.0873 (4), 181.1003, 181.1021, 181.1105, 181.1202, or 181.1401.
SB588,7,2
13. Notice of a special meeting includes a description of the matter or matters
2for which the meeting is called.
SB588,7,103 (d) Adjourned meetings. Unless the bylaws require otherwise, if an annual,
4regular, or special meeting of policyholders is adjourned to a different date, time, or
5place or will be held by a new means of remote communication, notice need not be
6given of the new date, time, place, or means of remote communication if the new date,
7time, place, or means of remote communication is announced at the meeting before
8adjournment. If a new record date for the adjourned meeting is or must be fixed
9under s. 181.0707, notice of the adjourned meeting must be given under this
10subsection to the policyholders of record as of the new record date.
SB588,13 11Section 13. 611.426 of the statutes is created to read:
SB588,7,16 12611.426 Remote participation in policyholder meetings. (1) If
13authorized by the board of directors in its sole discretion, and subject to sub. (2) and
14any guidelines and procedures adopted by the board of directors, policyholders and
15proxies of policyholders not physically present at a meeting of policyholders may
16participate in the meeting by means of remote communication.
SB588,7,21 17(2) If policyholders and proxies of policyholders participate in a meeting of
18policyholders by means of remote communication, the participating policyholders
19and proxies of policyholders shall be considered to be present in person and
20permitted to vote at the meeting, whether the meeting is held at a designated place
21or solely by means of remote communication, if all of the following apply:
SB588,7,2422 (a) The mutual has implemented reasonable measures to verify that each
23person considered to be present and permitted to vote at the meeting by means of
24remote communication is a policyholder or proxy of a policyholder.
SB588,8,4
1(b) The mutual has implemented reasonable measures to provide policyholders
2and proxies of policyholders a reasonable opportunity to participate in the meeting
3and to vote on matters submitted to the policyholders, including an opportunity to
4read or hear the proceedings of the meeting concurrently with the proceedings.
SB588,8,75 (c) The mutual maintains a record of voting and other actions by any
6policyholder or proxy of a policyholder that votes or takes another action at the
7meeting by means of remote communication.
SB588,14 8Section 14. 617.13 of the statutes is created to read:
SB588,8,13 9617.13 Rules requiring group capital calculations and liquidity stress
10tests. (1)
The commissioner shall promulgate rules requiring certain insurers, as
11determined under the rules, to report their group capital calculations and liquidity
12stress tests, including the form of the reports and the manner and process for filing
13the reports.
SB588,8,21 14(2) Sections 19.31 to 19.37 do not apply to the filings made under sub. (1) or to
15any information submitted to the commissioner in connection with the filings. The
16filings made under sub. (1) are not subject to subpoena or discovery and may not be
17admissible in evidence in any private civil action. The commissioner shall only share
18a filing made under sub. (1), and any information requested in connection with the
19filing, with the insurance regulatory authorities of states having statutes or
20regulations substantially similar to this section and who have agreed in writing not
21to disclose the information.
SB588,15 22Section 15. 625.03 (1m) (f) of the statutes is created to read:
SB588,8,2323 625.03 (1m) (f) Funding agreements authorized under s. 632.66.
SB588,16 24Section 16 . 632.62 (1) (b) 1. of the statutes is amended to read:
SB588,9,2
1632.62 (1) (b) 1. Paid-up, temporary, pure endowment insurance and annuity
2settlements provided in exchange for lapsed, surrendered or matured policies;.
SB588,17 3Section 17 . 632.62 (1) (b) 2. of the statutes is amended to read:
SB588,9,54 632.62 (1) (b) 2. Annuities beginning within one year of the making of the
5contract; and.
SB588,18 6Section 18. 632.62 (1) (b) 4. of the statutes is created to read:
SB588,9,77 632.62 (1) (b) 4. Funding agreements authorized under s. 632.66.
SB588,19 8Section 19 . 632.66 of the statutes is renumbered 632.66 (1).
SB588,20 9Section 20. 632.66 (2) of the statutes is created to read:
SB588,9,1410 632.66 (2) (a) In this subsection, “funding agreement” means an annuity
11without life contingencies that is an agreement for an insurer to accept and
12accumulate funds and to make one or more payments at future dates in fixed or
13variable amounts, or both, that are not based on mortality or morbidity
14contingencies.
SB588,9,1715 (b) A domestic insurer that holds a valid certificate of authority to transact the
16business of life insurance and annuities in this state may issue a funding agreement
17if all of the following conditions are met:
SB588,9,1918 1. The domestic insurer's board of directors, or an authorized committee of the
19board, approves the domestic insurer's plan relating to funding agreements.
SB588,9,2420 2. The commissioner determines that the issuance of funding agreements by
21the domestic insurer is not adverse to the interests of the policyholders of the
22domestic insurer, except that no determination from the commissioner is required
23if the domestic insurer has more than $200 billion in admitted assets. In making a
24determination under this subdivision, the commissioner shall consider the domestic

1insurer's specific policy objective and strategies, investment and risk management
2guidelines, and aggregate maximum limits on the funding agreement business.
SB588,10,53 3. No amounts may be guaranteed or credited under the funding agreement
4except upon reasonable assumptions as to investment income and expenses and on
5a basis equitable to all holders of a given class of the funding agreement.
SB588,10,76 4. The domestic insurer complies with the form filing requirements under s.
7631.20 with respect to the funding agreement.
SB588,10,98 (c) The issuance or delivery of a funding agreement by an insurer in this state
9shall constitute doing an insurance business herein.
SB588,10,1210 (d) A domestic insurer may offer funding agreements directly through the
11domestic insurer and is not required to use licensed intermediaries when marketing
12funding agreements.
SB588,10,1513 (e) Amounts paid to the domestic insurer, and proceeds applied under optional
14modes of settlement, under funding agreements may be allocated to one or more
15separate accounts pursuant to s. 611.24.
SB588,10,1816 (f) Notwithstanding ch. 551, the commissioner has sole authority to regulate
17the issuance and sale of funding agreements, including the persons selling funding
18agreements on behalf of insurers.
SB588,10,2219 (g) Notwithstanding s. 601.465 (1m) and subch. II of ch. 19, any materials
20submitted to the commissioner pursuant to an approval under par. (b) 2. or pursuant
21to a request from the commissioner related to a funding agreement shall be held
22confidential pursuant to s. 601.465 (1n).
SB588,10,2423 (h) The commissioner may promulgate rules as necessary for the
24implementation of this subsection.
SB588,21 25Section 21 . 635.05 (7) of the statutes is repealed.
SB588,22
1Section 22. 635.12 of the statutes is repealed.
SB588,23 2Section 23 . 645.68 (3) of the statutes is amended to read:
SB588,11,113 645.68 (3) Loss claims. All claims under policies for losses incurred, including
43rd-party claims and federal, state, and local government claims, except the first
5$200 of losses otherwise payable to any claimant under this subsection other than
6the federal government. All claims under life insurance and annuity policies,
7whether for death proceeds, annuity proceeds, or investment values, shall be treated
8as loss claims. All amounts payable under funding agreements, as defined in s.
9632.66 (2) (a), whether for principal or interest, shall be treated as loss claims.

10Claims may not be cumulated by assignment to avoid application of the $200
11deductible provision.
SB588,24 12Section 24. 646.01 (1) (b) 21. of the statutes is created to read:
SB588,11,1613 646.01 (1) (b) 21. A policy issued by an insurer to the federal government or an
14agency of the federal government for the purpose of providing health insurance
15coverage to enrollees under the federal employee health benefit plan program under
165 USC 8901 et seq.
SB588,25 17Section 25. 646.01 (1) (b) 22. of the statutes is created to read:
SB588,11,1818 646.01 (1) (b) 22. Funding agreements authorized under s. 632.66.
SB588,26 19Section 26 . 646.13 (2) (g) of the statutes is amended to read:
SB588,11,2520 646.13 (2) (g) Sue and be sued, make contracts, including a contract with an
21insured for administration and payment of claims for which the insured is
22responsible,
and borrow money necessary to carry out its duties, including money
23with which to pay claims under s. 646.31 or to continue coverage under s. 646.35.
24The fund may offer as security for such loans its claims against the liquidator or its
25power to levy assessments under this chapter.
SB588,27
1Section 27. 646.325 (2) (intro.) of the statutes is amended to read:
SB588,12,62 646.325 (2) Recovery from certain insureds and affiliates. (intro.) Except
3as provided in sub. (3), the fund may recover from a person the costs and expenses
4incurred in administering or defending a claim against the person by a 3rd party and
5the amount of any claim paid on behalf of the person to a 3rd party, if all of the
6following conditions are satisfied:
SB588,28 7Section 28 . 646.325 (2) (a) (intro.) of the statutes is amended to read:
SB588,12,98 646.325 (2) (a) (intro.) The person on whose behalf the claim was administered,
9defended, or paid is any of the following:
SB588,29 10Section 29. 646.325 (2) (a) 3. of the statutes is created to read:
SB588,12,1111 646.325 (2) (a) 3. A person excluded under s. 646.01 (1) (b) 18.
SB588,30 12Section 30 . 646.51 (3) (ar) (intro.) and 2. of the statutes are consolidated,
13renumbered 646.51 (3) (ar) and amended to read:
SB588,12,2314 646.51 (3) (ar) Disability. Except as provided in par. (c), with respect to
15disability insurance policies, including policies issued by health maintenance
16organization insurers, assessments shall be calculated as follows: 2. For
17assessments authorized by the board on or after November 13, 2015,
as a percentage
18of premium written in this state by each insurer in the classes protected by the
19accounts for the year preceding the year in which the assessment is authorized by
20the board. If the assessment data for the year immediately preceding the year in
21which the assessment is authorized by the board is not available when the
22assessment is called, the fund may use the assessment data for the most recent year
23for which data is available.
SB588,31 24Section 31 . 646.51 (3) (ar) 1. of the statutes is repealed.
SB588,32 25Section 32 . 655.27 (3) (b) 2. of the statutes is amended to read:
SB588,13,6
1655.27 (3) (b) 2. With respect to fees paid by physicians, the commissioner shall
2provide for no fewer than 4 payment classifications, based upon the amount of
3surgery performed and the risk of diagnostic and therapeutic services provided or
4procedures performed, by reference to the applicable Insurance Services Office, Inc.,
5codes for specialties and types of practice that are similar in the degree of exposure
6to loss
.
SB588,33 7Section 33 . 655.27 (3) (bt) of the statutes is amended to read:
SB588,13,238 655.27 (3) (bt) Report to joint committee on finance. Annually, no later than
9April 1, the commissioner shall send to the cochairpersons of the joint committee on
10finance a report detailing the proposed fees and payment classifications set for the
11next fiscal year under par. (b) and under s. 655.61 (1). If, within 14 working days after
12the date that the commissioner submits the report, the cochairpersons of the
13committee notify the commissioner that the committee has scheduled a meeting for
14the purpose of reviewing the proposed fees and payment classifications, the
15commissioner may not impose the fees or payment classifications until the
16committee approves the report. If the cochairpersons of the committee do not notify
17the commissioner, the commissioner may impose the proposed fees and payment
18classifications
. In addition to any other method prescribed by rule for advising
19health care providers of the amount of the fees and payment classifications, the
20commissioner shall post the fees and payment classifications set under par. (b) for
21the next fiscal year on the office's Internet site and the director of state courts shall
22post the fees set under s. 655.61 (1) for the next fiscal year on the mediation fund's
23Internet site.
SB588,34 24Section 34 . 655.275 (2) of the statutes is amended to read:
SB588,14,11
1655.275 (2) Appointment. The board of governors shall appoint the members
2of the council. Section 15.09, except s. 15.09 (4) and (8), does not apply to the council.
3The board of governors shall designate the chairperson, who shall be a physician, the
4vice chairperson, and the secretary of the council and the terms to be served by
5council members. The council shall consist of 5 or 7 persons, not more than 3 of whom
6are physicians who are licensed and in good standing to practice medicine in this
7state and one of whom is a nurse anesthetist who is licensed and in good standing
8to practice nursing in this state. The chairperson or another peer review council
9member designated by the chairperson shall serve as an ex officio nonvoting member
10of the medical examining board and may attend meetings of the medical examining
11board, as appropriate.
SB588,35 12Section 35. Effective dates. This act takes effect on the day after publication,
13except as follows:
SB588,14,1614 (1) Notice of cybersecurity event. The treatment of s. 601.954 (2) (f) (intro.),
151., and 2. takes effect on November 1, 2021, or the day after publication, whichever
16is later.
SB588,14,1717 (End)
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