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.
Ins 52.21(1)(c)2.2. Specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the commissioners standard ordinary valuation tables and valuation interest rate applicable to the issue year of the policy; and
Ins 52.21(1)(c)3.3. The initial surrender charge is not less than 100% of the first year annualized specified premium for the secondary guarantee period.
Ins 52.21(1)(d)(d) Credit life insurance.
Ins 52.21(1)(e)(e) Any variable life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts.
Ins 52.21(1)(f)(f) Any group life insurance certificate unless the certificate provides for a stated or implied schedule of maximum gross premiums required in order to continue coverage in force for a period in excess of one year.
Ins 52.21(2)(2)Reinsurance ceded to an assuming insurer that meets the applicable requirements of s. Ins 52.02 (4);
Ins 52.21(3)(3)Reinsurance ceded to an assuming insurer that meets the applicable requirements of s. Ins 52.02 (1), (2), or (3), and that in addition:
Ins 52.21(3)(a)(a) Prepares statutory financial statements in compliance with the national association of insurance commissioners accounting practices and procedures manual, without any departures from national association of insurance commissioners statutory accounting practices and procedures pertaining to the admissibility or valuation of assets or liabilities that increase the assuming insurer’s reported surplus and are material enough that they need to be disclosed in the financial statement of the assuming insurer pursuant to statement of statutory accounting principles no. 1; and
Ins 52.21(3)(b)(b) Is not in a company action level event, regulatory action level event, authorized control level event, or mandatory control level event as those terms are defined in s. Ins 51.01, when its risk-based capital is calculated in accordance with the life risk-based capital report including overview and instructions for companies, as the same may be amended by the national association of insurance commissioners from time to time, without deviation; or
Ins 52.21(4)(4)Reinsurance ceded to an assuming insurer that meets the applicable requirements of s. Ins 52.02 (1), (2), or (3), and that in addition, the following:
Ins 52.21(4)(a)(a) Is not an affiliate, as that term is defined in s. Ins 40.01 (2), of the insurer ceding the business to the assuming insurer; or any insurer that directly or indirectly ceded the business to that ceding insurer;
Ins 52.21(4)(b)(b) Prepares statutory financial statements in compliance with the national association of insurance commissioners accounting practices and procedures manual;
Ins 52.21(4)(c)(c) Is both licensed or accredited in at least 10 states, including its state of domicile, and is not licensed in any state as a captive, special purpose vehicle, special purpose financial captive, special purpose life reinsurance company, limited purpose subsidiary, or any other similar licensing regime; and
Ins 52.21(4)(d)(d) Is not, or would not be, below 500% of the authorized control level risk based capital as that term is defined in s. Ins 51.01 (3), when calculated in accordance with the life risk based capital report including overview and instructions for companies, as the same may be amended by the national association of insurance commissioners from time to time, without deviation, and without recognition of any departures from national association of insurance commissioners statutory accounting practices and procedures pertaining to the admission or valuation of assets or liabilities that increase the assuming insurer’s reported surplus; or
Ins 52.21(5)(5)Reinsurance ceded to an assuming insurer that:
Ins 52.21(5)(a)(a) Meets the requirements of s. Ins 52.02 (4m) or (4r); or