623.06(12)(b)3.f.
f. A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subsection shall be available and enforced in any proceeding in, and in any court of, this state.
623.06(12)(c)
(c) Notwithstanding par.
(b), any confidential information specified in par.
(am) 1. and
4. is subject to all of the following:
623.06(12)(c)1.
1. The confidential information may be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion submitted under sub.
(1m) or
(1r) or the principle-based valuation report developed under sub.
(10) (b) 3. by reason of an action required by this section or rules promulgated under this section.
623.06(12)(c)2.
2. The confidential information may otherwise be released by the commissioner with the written consent of the company.
623.06(12)(c)3.
3. If any portion of a memorandum in support of an opinion submitted under sub.
(1m) or
(1r) or any portion of the principle-based valuation report developed under sub.
(10) (b) 3. is cited by the company in its marketing, is publicly volunteered to or before a government agency other than a state insurance department, or is released by the company to the news media, all portions of such memorandum or report shall no longer be confidential.
623.06(13)(c)
(c) The provisions of this section shall supersede all provisions of law inconsistent or in conflict therewith.
623.06 Cross-reference
Cross-reference: See also ch.
Ins 50, Wis. adm. code.
623.11
623.11
Amount of compulsory surplus. 623.11(1)(1)
Determination of amount. Except as provided in sub.
(3), the commissioner shall, when necessary, determine the amount of compulsory surplus that an insurer is required to have in order not to be financially hazardous under s.
645.41 (4), as an amount that will provide reasonable security against contingencies affecting the insurer's financial position that are not fully covered by reserves or by reinsurance.
623.11(1)(a)
(a)
Types of contingencies. The commissioner shall consider the risks of:
623.11(1)(a)1.
1. Increases in the frequency or severity of losses beyond the levels contemplated by the rates charged;
623.11(1)(a)2.
2. Increases in expenses beyond those contemplated by the rates charged;
623.11(1)(a)3.
3. Decreases in the value of or the return on invested assets below those planned on;
623.11(1)(a)4.
4. Changes in economic conditions that would make liquidity more important than contemplated and would force untimely sale of assets or prevent timely investments;
623.11(1)(a)5.
5. Currency devaluation to which the insurer may be subject; and
623.11(1)(a)6.
6. Any other contingencies the commissioner can identify which may affect the insurer's operations.
623.11(1)(b)
(b)
Controlling factors. In making the determination under this subsection, the commissioner shall take into account the following factors:
623.11(1)(b)1.
1. The most reliable information available as to the magnitude of the various risks under par.
(a);
623.11(1)(b)2.
2. The extent to which the risks in par.
(a) are independent of each other or are related, and whether any dependency is direct or inverse;
623.11(1)(b)4.
4. The extent to which the insurer has provided protection against the contingencies in other ways than the establishment of surplus, including redundancy of premiums; adjustability of contracts under their terms; investment valuation reserves whether voluntary or mandatory; appropriate reinsurance; the use of conservative actuarial assumptions to provide a margin of security; reserve adjustments after rate increases for policies written at earlier and less adequate rates; contingency or catastrophe reserves; diversification of assets and underwriting risks;
623.11(1)(b)5.
5. Independent judgments of the soundness of the insurer's operations, as evidenced by the ratings of reliable professional financial reporting services; and
623.11(2)
(2)
Rules. Except as provided in sub.
(3), the commissioner may, subject to adjustment to the circumstances of individual insurers in accordance with the factors in sub.
(1) (b), establish by rule minimum ratios for the compulsory surplus in relation to any relevant variables, including the following:
623.11(2)(d)
(d) Equity investments of all or certain kinds in combination with any of the variables under pars.
(a) to
(c).
623.11(3)
(3)
Health maintenance organization insurers. The amount of compulsory surplus required of a health maintenance organization insurer is the amount provided in s.
609.97.
623.11 Note
NOTE: Chapter 260, laws of 1971, which created this chapter of the statutes, contained notes explaining the revision.
623.12
623.12
Amount of security surplus. The security surplus shall be set by the commissioner between 110 percent and 140 percent of the compulsory surplus. In setting the figure the commissioner may consider such factors as the size of the insurer, its recent experience, the volatility of the lines of insurance in which it engages and any other relevant factors.
623.12 History
History: 1971 c. 260.
623.15
623.15
Fraternal rates and reserves. 623.15(1)(a)(a) In this subsection, “owner" means the owner of a policy or certificate issued by a fraternal in accordance with s.
614.10.
623.15(1)(b)
(b) A fraternal may be organized for the transaction of business on a plan set forth in the contract which provides for sufficient contributions by each owner in each year to pay the owner's share of the actual death claims of the year through advance payments graded according to any mortality table approved by the commissioner, without any reserve, or with such reserve as may accumulate from overpayments of individual owners, in which case each owner shall each year be informed of the owner's credit and of the cost of the owner's insurance.
623.15(2)
(2)
Rates. Every fraternal shall collect regular premiums for each coverage it provides at adequate rates that are approved by the commissioner or conform to standards set in rules promulgated by the commissioner.
623.15(3)
(3)
Reserves. The reserves of a fraternal are subject to the same requirements as those of ch.
611 insurers writing the same coverages except that the commissioner may authorize the use of suitable fraternal mortality tables or other appropriate tables instead of the tables used by ch.
611 insurers.
623.15 Cross-reference
Cross-reference: See also s.
Ins 1.01, Wis. adm. code.
623.15 Annotation
Legislative Council Note, 1975: Sub. (1) continues s. 208.18 with a change from a specified mortality table to one approved by the commissioner. A nonreserve society can be perfectly sound actuarially and should be permitted if it is. The natural premium basis contemplated by this section is sound but not very attractive in the market.
623.15 Annotation
Sub. (2) continues in simplified form the provisions of s. 208.15 (1) and (2).
623.15 Annotation
Sub. (3) much simplifies ss. 208.09 (2) (b) and (c) and 208.15 (4) and (5). [Bill 643-S]
623.21
623.21
Adjustment of reserves. The commissioner may order an insurer to adjust its reserves if they do not bear an appropriate relationship to its obligations.
623.21 History
History: 1973 c. 293.
623.34
623.34
Accounting for repurchased shares. When a corporation acquires its own shares under s.
611.34 or in any other way, the acquired shares shall be accounted for as a deduction from capital and not as assets.
623.34 History
History: 1979 c. 102.
