Ins 52.06(3)(c)1.1. Any amount withdrawn in excess of the actual amounts required for par. (b) 1., 2., or 3., or in the case of par. (b) 4., any amounts that are subsequently determined not to be due; and
Ins 52.06(3)(c)2.2. Interest payments, at a rate not in excess of the prime rate of interest, on the amounts held under par. (b) 3.
Ins 52.06(3)(d)(d) Requires a trust agreement to accomplish to the purpose of par. (b), instead of including that provision in the reinsurance agreement, and the trust agreement is incorporated in the reinsurance agreement or separately executed except a trust agreement may be used only if the reinsurance agreement covers risks other than life, annuities and health and if it is customary practice to provide a letter of credit for a specific purpose.
Ins 52.06 HistoryHistory: Cr. Register, July, 1993, No. 451, eff. 8-1-93; CR 17-004: am. (2) (h), (i) Register December 2017 No. 744, eff. 1-1-18.
Ins 52.065Ins 52.065Concentration Risk.
Ins 52.065(1)(1)A ceding insurer shall take steps to manage its reinsurance recoverable balances proportionate to its own book of business. A domestic ceding insurer shall notify the commissioner within 30 days after reinsurance recoverable from any single assuming insurer, or group of affiliated assuming insurers, exceeds 50% of the domestic ceding insurer’s last reported surplus to policyholders, or after it determined that reinsurance recoverable from any single assuming insurer, or of affiliated assuming insurers, is likely to exceed this limit. The notification shall include an explanation demonstrating that the exposure is safely managed by the domestic ceding insurer.
Ins 52.065(2)(2)A ceding insurer shall take steps to diversity its reinsurance program. A domestic ceding insurer shall notify the commissioner within 30 days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than 20% of the ceding insurer’s gross written premium in the prior calendar year, or after it has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall include an explanation demonstrating that the exposure is safely managed by the domestic ceding insurer.
Ins 52.065 HistoryHistory: CR 17-004: cr. Register December 2017 No. 744, eff. 1-1-18; corrections made under s. 35.17, Stats., Register December 2017 No. 744.
Ins 52.07Ins 52.07Applicability.
Ins 52.07(1)(1)This subchapter applies to determine whether credit may be taken for:
Ins 52.07(1)(a)(a) Any reinsurance ceded under agreements entered into on or after August 1, 1993; or
Ins 52.07(1)(b)(b) Any reinsurance ceded if the reinsurance agreement is renewed by agreement on or after August 1, 1993.
Ins 52.07(2)(2)Section Ins 6.73 continues to apply for the purpose of determining whether credit may be taken for reinsurance which is not subject to this subchapter under sub. (1).
Ins 52.07 NoteNote: Ins 6.73 was repealed eff. 8-1-93.
Ins 52.07(3)(3)This subchapter and ch. Ins 55 are in addition to and do not limit the commissioner’s authority under s. 618.21 (1) (a), 618.23 (1) (a), 618.26 (1) (a), 623.11, 623.12 or 623.21, or ch. 645, Stats., or s. Ins 51.80. Even if credit for reinsurance is permitted under this chapter and ch. Ins 55, the commissioner may under those provisions require a licensed insurer to exclude the effects of the credit for the purpose of determining compliance with security or compulsory surplus.
Ins 52.07(4)(4)Nothing in this subchapter or ch. Ins 55 relieves an insurer or an officer or director of an insurer or an accountant or actuary from responsibility under s. 627.23 (3), Stats., or fiduciary or professional responsibility, to assess the financial condition of a reinsurer. Accreditation by the commissioner does not create a presumption that a reinsurer is in compliance with this subchapter or that it is in sound financial condition and no reinsurer or officer, employee or agent of a reinsurer may make such a representation.
Ins 52.07(5)(5)Except to the extent necessary to prevent a conflict with an applicable covered agreement, this subchapter does not limit or change the requirements for town mutual insurers under ss. 612.31 and 612.33, Stats. This subchapter applies to the state life fund.
Ins 52.07 HistoryHistory: Cr. Register, July, 1993, No. 451, eff. 8-1-93; correction in (3) made under s. 13.92 (4) (b) 7., Stats., Register February 2013 No. 686; CR 21-066: am. (1) (intro.), (2) to (5) Register May 2022 No. 797, eff. 6-1-22.
subch. II of ch. Ins 52Subchapter II — Credit for Reinsurance Involving Term and Universal Life Reserve Financing
Ins 52.20Ins 52.20Purpose, intent, and applicability. In addition to provisions contained at s. Ins 2.80, the following apply to this subchapter:
Ins 52.20(1)(1)Purpose and intent. The purpose and intent of this subchapter is to establish uniform, national standards governing reserve financing arrangements pertaining to life insurance policies containing guaranteed nonlevel gross premium, guaranteed nonlevel benefits and universal life insurance policies with secondary guarantees; and to ensure that, with respect to each such financing arrangement, funds consisting of primary security and other security are held by or on behalf of ceding insurers in the forms and amounts required. In general, reinsurance that is ceded for reserve financing purposes has one or more of the following characteristics: some or all of the assets used to secure the reinsurance treaty or to capitalize the reinsurer are issued by the ceding insurer or its affiliates; or are not unconditionally available to satisfy the general account obligations of the ceding insurer; or create a reimbursement, indemnification or other similar obligation on the part of the ceding insurer or any if its affiliates, other than a payment obligation under a derivative contract acquired in the normal course and used to support and hedge liabilities pertaining to the actual risks in the policies ceded pursuant to the reinsurance treaty.
Ins 52.20(2)(2)Applicability. This subchapter shall apply to reinsurance treaties that cede liabilities pertaining to covered policies issued by any life insurance company domiciled in this state. Subchapter I and this subchapter shall both apply to such reinsurance treaties; provided, that in the event of a direct conflict between the provisions of this subchapter and subch. I, the provisions of this subchapter shall apply, but only to the extent of the conflict.
Ins 52.20 HistoryHistory: CR 21-066: cr. Register May 2022 No. 797, eff. 6-1-22; correction in (intro.) made under s. 35.17, Stats., Register May 2022 No. 797.
Ins 52.21Ins 52.21Exemptions. This subchapter does not apply to the situations described below:
Ins 52.21(1)(1)Reinsurance of:
Ins 52.21(1)(a)(a) Policies that satisfy the criteria for exemption set forth in s. Ins 2.80 (5) (k) or (L) that were issued prior to June 1, 2022.
Ins 52.21(1)(b)(b) Portions of policies that satisfy the criteria for exemption set forth in s. Ins 2.80 (5) (j), that were issued prior to June 1, 2022.
Ins 52.21(1)(c)(c) Any universal life policy that meets the following requirements:
Ins 52.21(1)(c)1.1. Secondary guarantee period, if any, is 5 years or less.