Chapter Ins 6

Ins 6.78(4)(a) (a) The insurer keeps for at least five years after the inception date of the policy the following information:

Ins 6.78(4)(a)1. 1. The filed rate and premium and the deviated rate and premium;

Ins 6.78(4)(a)2. 2. The effective date of the policy and the location and description of the risk;

Ins 6.78(4)(a)3. 3. The reason for the deviation; and

Ins 6.78(4)(a)4. 4. A record of the deviated rate development.

Ins 6.78(4)(b) (b) Prior to entering into such insurance agreements in Wisconsin, the insurer has notified the commissioner of its intentions to do so, identifying the contemplated rate deviation program.

Ins 6.78 History History: Cr. Register, January, 1980, No. 289, eff. 2-1-80; am. (1), (2) and (3) (intro.), cr. (4), Register, February, 1993, No. 446, eff. 3-1-93; reprinted to restore dropped copy in (3), Register, May, 1993, No. 449.

Ins 6.785 Ins 6.785 Exemption from rate and form filing requirements.

Ins 6.785(1) (1) Purpose. This section is intended to exempt certain classes of property and casualty rates and commercial property and casualty forms from the rate and form filing requirements. This section implements and interprets ss. 625.04, 625.13, 625.15, and 631.20, Stats.

Ins 6.785(2) (2) Scope. This section applies to the lines or classes of insurance which are listed in s. Ins 6.75 (2) (a), (d), (e), (f), (g), (h), (i), (j), (L), (m) and (n) of direct insurance written on risks or operations in this state subject to s. 625.03, Stats., and which are exempted under the consent-to-rate provision of s. Ins 6.78.

Ins 6.785(3) (3) Findings. The commissioner of insurance finds that for certain classes of business certain risks within other classes of business and certain situations, the rate filing requirements set forth in s. 625.13, Stats., are unnecessary to achieve the purposes of ch. 625, Stats., and the policy form filing requirements set forth in s. 631.20, Stats., are unnecessary to achieve the purposes of ch. 631, Stats. The commissioner bases this finding on the following reasons:

Ins 6.785(3)(a) (a) The manual rate, classification or form is inappropriate because it does not adequately reflect the exposure represented by the risk;

Ins 6.785(3)(b) (b) The risk is so different from other risks that no single manual rate or classification could be representative of all such risks;

Ins 6.785(3)(c) (c) The risk belongs to a classification that does not develop enough experience to warrant sufficient credibility for rate-making purposes;

Ins 6.785(3)(d) (d) The risk involves a new product or coverage as to which there are no appropriate analogous exposures for rate-making purposes;

Ins 6.785(3)(e) (e) The risk is a specialty type of insurance where enhanced speed to market for such insurance products will enhance competition and provide commercial policyholders with quicker access to new and innovative products; or

Ins 6.785(3)(f) (f) The risk constitutes a business-to-business transaction of a sufficient size or specialized nature as to not warrant filings in order to accomplish the purposes of the statute.

Ins 6.785(4) (4) Rate filing exemption. The following rates shall not be filed with the commissioner by the insurer or rate service organization on behalf of the insurer provided the insurer complies with sub. (7):

Ins 6.785(4)(a) (a) The rate for an individual risk written under a rating rule class filed with the commissioner which must be accompanied by a certification by a qualified actuary that the rate under the rating rule class cannot be objectively rated for at least one of the following reasons:

Ins 6.785(4)(a)1. 1. The class generates insufficient loss experience to be reliably used in rating;

Ins 6.785(4)(a)2. 2. The class loss experience is so volatile as to make it unreliable;

Ins 6.785(4)(a)3. 3. Prospective losses for this class are likely to change rapidly and unpredictably; or

Ins 6.785(4)(a)4. 4. Risks within the class are so dissimilar that a single rate would not be representative of all risks in the class.

Ins 6.785(4)(b) (b) Rates for excess liability insurance provided in an amount not less than $1,000,000 in excess of a specified retained limit provided such retained limit is not less than:

Ins 6.785(4)(b)1. 1. $350,000 per occurrence as respects those exposures covered by underlying insurance; or

Ins 6.785(4)(b)2. 2. $10,000 per occurrence as respects those exposures not covered by underlying insurance.

Ins 6.785(4)(c) (c) Rates for risks developing annual products liability and completed operations insurance premiums of $5,000 or more at the basic limit.

Ins 6.785(4)(d) (d) Rates for risks developing annual increased limits written premium determined by customary rating procedures of $5,000 or more.

Ins 6.785(4)(e) (e) Rates for risks developing $50,000 or more annual manual basic limit premium individually or in any combination of general liability insurance, commercial automobile, crime or glass.

Ins 6.785(4)(f) (f) Rates for liability insurance increased limits if the risk is reinsured on a facultative basis.

Ins 6.785(4)(g) (g) Rates for an adjustment of the aggregate limit of general liability insurance at any time during the policy period.

Ins 6.785(4)(h) (h) Rates for coverage which is materially broader or more restrictive than the coverage upon which the manual rate is based.

Ins 6.785(4)(i) (i) Rates for commercial property and casualty risks developing $50,000 or more in annual premium, except for any of the following:

Ins 6.785(4)(i)1. 1. Workers’ compensation insurance.

Ins 6.785(4)(i)2. 2. Medical malpractice liability insurance.

Ins 6.785(4)(i)3. 3. Any coverage issued under an assigned risk plan or through a residual market pool or residual market facility.

Ins 6.785(4)(i)4. 4. Any insurance that provides coverage for primary personal, family, or household purposes.

Ins 6.785(5) (5) Utilization of rate filing exemption. An insurer or a rate service organization wishing to utilize the rate filing exemption or modification granted by sub. (4) shall have on file with the commissioner rating rules pertaining to the situations described in sub. (4).

Ins 6.785(6) (6) Disapproval of filed rules. If the commissioner determines that a rating rule does not meet the rate standards set forth in s. 625.11, Stats., the commissioner may exercise the authority granted by s. 625.22, Stats., and disapprove the rate.

Ins 6.785(6g) (6g) Form filing exemption. The commercial property and casualty insurance policy forms identified in pars. (a) and (b) are exempt from the filing requirements set forth in s. 631.20 (1) (a), Stats., provided the insurer complies with any requirements of chs. 600 to 655, Stats., and the Wisconsin Administrative Code that govern the content of such policy forms.

Ins 6.785(6g)(a) (a) The following commercial property and casualty forms developing $50,000 or more in annual premium are exempt:

Ins 6.785(6g)(a)1. 1. Aircraft hull and liability;

Ins 6.785(6g)(a)2. 2. Surety;

Ins 6.785(6g)(a)3. 3. Fidelity;

Ins 6.785(6g)(a)4. 4. Boiler and machinery;

Ins 6.785(6g)(a)5. 5. Environmental impairment/pollution liability;

Ins 6.785(6g)(a)6. 6. Kidnap and ransom;

Ins 6.785(6g)(a)7. 7. Political risk or expropriations; and

Ins 6.785(6g)(a)8. 8. Employment practices liability.

Ins 6.785(6g)(b) (b) The following commercial property and casualty forms developing $75,000 or more in annual premium are exempt:

Ins 6.785(6g)(b)1. 1. Commercial inland marine;

Ins 6.785(6g)(b)2. 2. Product liability; and

Ins 6.785(6g)(b)3. 3. Fiduciary liability.

Ins 6.785(6r) (6r) Disapproval of exempt forms. If the commissioner determines that a policy form subject to the filing exemption granted by sub. (6g) does not meet the standards set forth in s. 631.20 (2), Stats., the commissioner may disapprove the use of a form.

Ins 6.785(7) (7) Insurer records. An insurer using a rate subject to the exemption granted by sub. (4) or a form subject to the filing exemption granted by sub. (6g) shall maintain separate records and documentation for a period of 3 years after the rate or form is no longer used. This documentation shall include all details of the factors used in determining the rate or classification for a particular risk, including conditions used to qualify a rate for an exemption under sub. (4). The insurer shall provide these records to the commissioner upon request.

Ins 6.785(8) (8) Policyholder notice. Any policy exempt from filing under sub. (6g) shall include, at the time of issuance, a notice advising the policyholder that the policy includes forms and policy terms that have not been filed with or reviewed by the commissioner of insurance.

Ins 6.785 History History: Emerg. cr. eff. 8-3-92; cr. Register, February, 1993, No. 446, eff. 3-1-93; CR 21-089: am. (title), (1), (3) (intro.), (c), (d), cr. (3) (e), (f), am. (4) (e), cr. (4) (i), (6g), (6r), am. (7), cr. (8) Register July 2022 No. 799, eff. 8-1-22; correction in (6g) made under s. 35.17, Stats., Register July 2022 No. 799.

Ins 6.79 Ins 6.79 Advisory councils and committees.

Ins 6.79(1) (1) Purpose. The purpose of this section is to delineate the process by which the commissioner may create advisory councils and committees under s. 15.04 (1) (c), Stats., to assist in dealing with regulatory problems pursuant to s. 601.20, Stats., and may include assistance with rule-making pursuant to s. 227.13, Stats.

Ins 6.79(2) (2) Duties. Each council or committee shall advise the commissioner on matters relating to specific issues or subjects presented to the members for study and review by the commissioner of insurance.

Ins 6.79(3) (3) Expense reimbursement. Members of the councils and committees shall receive no salary or compensation for service on the councils or committees but shall be reimbursed for their actual and necessary expenses in attending meetings or while performing other duties as directed by the commissioner.

Ins 6.79(4) (4) Meetings. The councils or committees shall meet as needed or at such times as requested by the commissioner.

Ins 6.79(5) (5) Membership. For each council or committee created by the commissioner, membership may not exceed 15 members and shall be representative of the various interested parties and include persons who possess expertise or interest on the issue or topic of the council or committee.

Ins 6.79(6) (6) Chairs. The commissioner shall appoint the chair, unless the commissioner authorizes a different process for selection. The commissioner shall appoint an employee of the office as a non-voting member to assist the council or committee with its duties. The commissioner or a designee shall keep a record of all proceedings, transactions, communications, and other official acts of the councils and committees. The commissioner or a designee appointed by the commissioner shall serve as a voting member when the council or committee is convened in accordance with s. 15.04 (1) (c), Stats. The files and records of the councils and committees shall be maintained at the office of the commissioner of insurance.

Ins 6.79(7) (7) Term. Members of the councils and committees serve at the pleasure of the commissioner.

Ins 6.79 History History: Cr. Register, January, 1980, No. 289, eff. 2-1-80; correction in (1) under s. 13.93 (2m) (b) 7., Stats., Register, September, 1984, No. 348; r. (2) (c), Register, November, 1991, No. 431, eff. 12-1-91; correction in (1) made under s. 13.93 (2m) (b) 7., Stats., Register, February, 2000, No. 530; CR 08-064: r. and recr. Register December 2008 No. 636, eff. 1-1-09.

Ins 6.80 Ins 6.80 Retention of records.

Ins 6.80(1) (1) Purpose. The purpose of this section is to establish standards for record retention by insurers and other persons subject to the regulation of the commissioner.

Ins 6.80(2) (2) Scope.

Ins 6.80(2)(a) (a) This section shall apply to all insurers licensed under chs. 611, 612, 613, 614, and 618, Stats., and including the Local Property Insurance Fund, the State Life Insurance Fund, and the State Indemnity Fund.

Ins 6.80(2)(b) (b) The following sections also apply:

Ins 6.80(2)(b)1. 1. Section Ins 1.01 (3) applies to fraternals.

Ins 6.80(2)(b)2. 2. Sections Ins 2.07 (5) (a) 2. d. and (b) 2. b. apply to life insurance.

Ins 6.80 Note Note: Sections Ins 2.07 (5) (a) 2. d. and (b) 2. b. do not exist. Section Ins 2.07 was repealed and recreated eff. 3-1-82.

Ins 6.80(2)(b)3. 3. Section Ins 3.25 (9) (d) applies to credit life and accident and sickness insurance.

Ins 6.80(2)(b)4. 4. Section Ins 3.27 (28) applies to disability insurance.

Ins 6.80(2)(b)5. 5. Section Ins 6.17 (3) (c) and (d) apply to surplus lines.

Ins 6.80(2)(b)6. 6. Sections Ins 6.30 (2) (a) 1. e., 6.30 (3) (a) 3. e., (4) (a) 2. e. and (5) (a) 3. apply to property and casualty insurers.

Ins 6.80(2)(b)7. 7. Section Ins 6.55 (5) (b) applies to all insurers.

Ins 6.80(2)(b)8. 8. Section Ins 6.61 applies to intermediaries.

Ins 6.80(2)(b)9. 9. Section Ins 8.09 applies to employee welfare funds.

Ins 6.80 Note Note: Section Ins 8.09 has been repealed.

Ins 6.80(2)(b)10. 10. Sections Ins 8.65 (4) and 8.69 (6) apply to small employer insurers.

Ins 6.80(3) (3) Definitions.

Ins 6.80(3)(a) (a) “Domestic insurer” has the meaning set forth in s. 600.03 (17), Stats.

Ins 6.80(3)(b) (b) “Insurer” has the meaning set forth in s. 600.03 (17), Stats.

Ins 6.80(3)(c) (c) “Nondomestic insurer” has the meaning set forth in s. 600.03 (32), Stats.

Ins 6.80(3)(d) (d) “Hard copy” means any information which is procured from an alternate storage facility such as microfilm, microfiche or electronic data processing and reproduced into proper form.

Ins 6.80(4) (4) Domestic insurers.