Article VIII. Any assessment shall be levied in accordance with s. 612.54 (1) through (3). Notice of any assessment shall be subject to s. 612.54 (4). Consequences of default and failure to pay an assessment shall be as specified in s. 612.54 (5).

Ins 13.03 History History: Cr. Register, August, 1974, No. 224, eff. 9-1-74; am. (3), Register, June, 2001, No. 546, eff. 1-1-02.

Ins 13.04 Ins 13.04 Undertaking to pay premiums and assessments and contract forms.

Ins 13.04(1) (1) Purposes. This rule is promulgated to implement, and set forth procedural requirements necessary to carry out the purpose and provisions of ss. 612.51, 612.52 and 612.54, Stats.

Ins 13.04(2) (2) Scope. This rule shall apply to all corporations organized or operating under ch. 612, Stats.

Ins 13.04(3) (3) Undertaking to pay premiums and assessments. The undertaking to pay premiums and assessments to be signed by all prospective members shall be in form and substance substantially as follows, and may be a part of the application:

UNDERTAKING TO PAY PREMIUMS AND
ASSESSMENTS

  I, _______________of______________, in consideration of insurance on my buildings and personal property, insured to myself, my heirs and assigns by the_______________ Insurance Company, bind myself, and to the extent of their interest in the property my heirs and assigns, to pay to the company the premiums for such insurance and, within the period of time stated in the notice of assessment, my share of all legal assessments, if any, levied by the company, together with all legal costs and charges incurred in legal proceedings to collect any assessment levied upon me and statutory penalties for nonpayment, according to the statutes and the terms and conditions in the policy and any renewals thereof or of the insurance thereunder. My property covered by the insurance, both personal and real, shall be liable for that share, waiving all exemptions.

Dated this_______ day of_____________, 20___

Witness
Agent

          ___________________            

          ___________________
    Applicants

Ins 13.04(4) (4) Town mutual policy forms. Town mutual policy forms shall conform to ss. Ins 6.07 and 6.76, and shall include provisions substantially as follows relating to articles of incorporation and bylaws and notice of annual meeting:

Ins 13.04(4)(a) (a)

ARTICLES OF INCORPORATION AND BYLAWS

It is hereby mutually understood and agreed by and between this company and the insured, that this policy is made and accepted with reference to the Articles of Incorporation and Bylaws, which are hereby declared to be part of this contract. This provision applies whether or not the Articles of Incorporation and Bylaws are included in this policy.

Ins 13.04(4)(b) (b)

NOTICE

The insured is notified that by virtue of this Policy he or she is a member of the________________Insurance Company, of _______________, County, Wisconsin, and that the annual meetings of said company are held in_____________, County, Wisconsin, on the (date) in (month) of each year at _____o’clock___M.

Ins 13.04(5) (5) Permissible variations. Provisions of a town mutual policy may be so arranged in the policy as to provide for convenience in its preparation and issuance. Blank spaces may be changed or altered, spaces may be provided for the listing of rates and premiums for coverages insured under the policy or by riders or by endorsements attached to or printed thereon, and spaces may be utilized for reference to forms and for listing the amount of insurance, provisions as to coinsurance, provisions as to mortgage clause, descriptions and locations of the insured property and other matters advisable and necessary to indicate a delineation of the insurance effective under the contract, and other data as may be included for duplication of daily reports for office records.

Ins 13.04(6) (6) Forms and endorsements. Riders, forms and endorsements may be attached to the town mutual policy to include perils in addition to fire and lightning and for other necessary purposes. Except when in contradiction with ch. 612, Stats., the contracts, endorsements, and other forms of town mutuals should be similar to like forms of insurers subject to chs. 631 and 632, Stats.

Ins 13.04(7) (7) Mortgagee clause. If a loss under a policy issued by a town mutual insurer is payable to a mortgagee who is not an insured, the mortgagee clause may provide:

Ins 13.04(7)(a) (a) For payment by the insurer despite policy defense; or

Ins 13.04(7)(b) (b) That the mortgagee is not liable for any premium or assessment, regardless of whether coverage has been extended after payment of a premium or assessment by the mortgagee.

Ins 13.04 History History: Cr. Register, August, 1974, No. 224, eff. 9-1-74; emerg. am. (4) (a) and (c), eff. 6-22-76; am. (4) (a) and (c), Register, September, 1976, No. 249, eff. 10-1-76; am. (3), r. and recr. (4) and (5), cr. (6), Register, April, 1982, No. 316, eff. 5-1-82; cr. (7), Register, May, 1986, No. 365, eff. 6-1-86.

Ins 13.05 Ins 13.05 Accounting records, accounting controls and reports.

Ins 13.05(1) (1) Purpose. This rule is intended to implement and interpret s. 601.41, Stats., for the purpose of setting minimum standards and techniques for accounting and reporting of data relating to company financial transactions and other operations.

Ins 13.05(2) (2) Scope. This rule shall apply to all town mutual insurers organized or operating under ch. 612, Stats.

Ins 13.05(3) (3) Accounting records. The following journals, ledgers and subsidiary records or similar records from which the data indicated may be obtained shall be maintained:

Ins 13.05(3)(a) (a) Policy Register: A register or other records which shall contain the policy number, policyholder’s name, effective date of policy, term of policy, risk in force, amount of risk in force reinsured, premium amount, policy fee, reinsurance premium, and provision for miscellaneous data.

Ins 13.05(3)(b) (b) Cash Receipts Journal: A journal which shall contain the date, payor, amount received, identification, and reference to the general ledger account and amount affected. All cash received by the company shall be recorded in the journal.

Ins 13.05(3)(c) (c) Cash Disbursements Journal: A journal which shall contain the date, payee, check number, amount of check, and a reference to the general ledger account and amount affected. All cash disbursed by the company shall be recorded in the journal.

Ins 13.05(3)(d) (d) General Journal: A journal for recording entries for all transactions affecting ledger items, which are not recorded in the cash receipts journal or cash disbursements journal. The general journal shall contain the date of the transaction, an explanation, the ledger account affected, and the amount of the transaction.