Ins 17.50(5)(c)(c) A self-insured plan may not begin operation without the written approval of the office which specifies the earliest date operation may begin.

Ins 17.50(6)(b)(b) Before a self-insured plan begins operation, the provider shall establish a trust with a Wisconsin-chartered or federally-chartered bank with trust powers which is located in this state.

Ins 17.50(6)(c)(c) For self-insured plans except a self-insured plan for affiliated health care providers, the provider shall provide all of the following:

Ins 17.50(6)(c)1.1. If the actuarial estimate under sub. (4) (d) is less than $2,000,000, the provider shall, before the self-insured plan begins operation, deposit in the trust cash equal to the first year’s estimated liabilities plus a letter of credit equal to the difference between the cash funding and $2,000,000 except as provided under sub. (4) (m).

Ins 17.50(6)(c)2.2. In each of the next 3 years, the provider shall make quarterly cash payments to the trust in amounts sufficient to keep the estimated liabilities fully funded and shall keep in effect a letter of credit equal to the difference between the total estimated liabilities and $2,000,000.

Ins 17.50(6)(c)3.3. If the total estimated liabilities for the 5th year of operation are less than $2,000,000, the provider shall, during that year, make quarterly cash payments to the trust in amounts sufficient to ensure that, by the end of that year, the trust’s cash assets equal $2,000,000, except that if the provider files a written request with the commissioner before the beginning of that year, the commissioner may permit the provider to continue using a letter of credit equal to the difference between the total estimated liabilities and $2,000,000. This permission may be renewed annually if the provider files a written request with the commissioner before the beginning of each subsequent fiscal year.

Ins 17.50(6)(c)4.4. A letter of credit under this subsection shall meet all of the following conditions:

Ins 17.50(6)(d)(d) If the actuarial estimate under sub. (4) (d) is greater than $2,000,000, the provider shall, before the self-insured plan begins operation, deposit $2,000,000 cash in the trust. The provider shall make quarterly cash payments to the trust so that at the end of the first year of operation, the trust’s cash assets equal the first year’s estimated liabilities.

Ins 17.50(6)(e)(e) In each subsequent year of the self-insured plan’s operation, the provider shall make quarterly cash payments to the trust in amounts sufficient to ensure that the total cash assets of the trust at the end of each year are not less than the estimated liabilities reported under sub. (8) (a) 1.

Ins 17.50(6)(f)1.1. If the provider or any natural person covered under sub. (3) (b) had claims-made coverage before the self-insured plan was established and did not purchase an extended reporting endorsement from the previous carrier, the self-insured plan shall provide coverage for prior acts by means of cash payments to the trust in addition to the funding required for the occurrence coverage.

Ins 17.50(6)(f)2.2. If the actuarial estimate under sub. (4) (e) is less than $500,000, the provider shall, before the self-insured plan begins operation, deposit in the trust the entire amount of the estimate in cash.

Ins 17.50(6)(f)3.3. If the actuarial estimate under sub. (4) (e) is greater than $500,000, the provider shall, before the self-insured plan begins operation, deposit in the trust $500,000 or the first year’s estimated payments, whichever is greater. The provider shall make quarterly cash payments to the trust so that at the end of the first year, the trust’s assets include the total estimated liabilities for prior acts.

Ins 17.50(6)(g)(g) Quarterly cash payments under this subsection shall be in equal amounts except that the amount of the last quarter’s payment shall be adjusted by the amounts of the trust’s investment income and actual expenses incurred, and except that the first quarter’s payment shall not be less than the amount of a quarterly payment for the previous year before adjustment for income and expenses.

Ins 17.50(6)(h)1.1. A provider may not deposit in the trust, and the trustee may not pay from the trust, any funds other than those intended to meet the financial responsibility requirements of ch. 655, Stats., and to pay the administrative expenses of operating the self-insured plan and the trust.

Ins 17.50(6)(h)2.2. The trustee may not invest any of the trust’s assets in securities or real property of the provider or any of its affiliates.

Ins 17.50(6)(i)(i) If the assets of the trust at any time are insufficient to pay all claims against the self-insured plan, the liabilities are those of the provider without recourse against any employee, partner or shareholder covered by the self-insured plan.

Ins 17.50(6m)(6m) Funding requirements for affiliated health care providers. The minimum initial funding required for a self-insured plan is the greater of $2,000,000 or the actuarial estimate under sub. (4) (d).

Ins 17.50(7)(7) Filing prior to operation of self-insured plan. Before an approved self-insured plan begins operation, the provider shall file with the office all of the following:

Ins 17.50(7)(b)(b) If the provider is not a natural person, a certified copy of an executed resolution adopted by the provider’s governing body approving the self-insured plan and trust agreement.