The withdrawing state is responsible for all obligations, duties, and liabilities incurred through the effective date of withdrawal, including any obligations, the performance of which extend beyond the effective date of withdrawal, except to the extent those obligations may have been released or relinquished by mutual agreement of the commission and the withdrawing state. The commission's approval of products and advertisement prior to the effective date of withdrawal shall continue to be effective and be given full force and effect in the withdrawing state, unless formally rescinded by the withdrawing state in the same manner as provided by the laws of the withdrawing state for the prospective disapproval of products or advertisement previously approved under state law.
Reinstatement following withdrawal of any compacting state shall occur upon the effective date of the withdrawing state reenacting the compact.
If the commission determines that any compacting state has at any time defaulted (“defaulting state") in the performance of any of its obligations or responsibilities under this compact, the bylaws, or duly promulgated rules or operating procedures, then, after notice and hearing as set forth in the bylaws, all rights, privileges, and benefits conferred by this compact on the defaulting state shall be suspended from the effective date of default as fixed by the commission. The grounds for default include, but are not limited to, failure of a compacting state to perform its obligations or responsibilities and any other grounds designated in commission rules. The commission shall immediately notify the defaulting state in writing of the defaulting state's suspension pending a cure of the default. The commission shall stipulate the conditions and the time period within which the defaulting state must cure its default. If the defaulting state fails to cure the default within the time period specified by the commission, the defaulting state shall be terminated from the compact and all rights, privileges, and benefits conferred by this compact shall be terminated from the effective date of termination.
Product approvals by the commission or product self-certifications, or any advertisement in connection with such product, that are in force on the effective date of termination shall remain in force in the defaulting state in the same manner as if the defaulting state had withdrawn voluntarily under par. (a)
Reinstatement following termination of any compacting state requires a reenactment of the compact.
The compact dissolves effective upon the date of the withdrawal or default of the compacting state that reduces membership in the compact to one compacting state.
Upon the dissolution of this compact, the compact becomes null and void and shall be of no further force or effect, and the business and affairs of the commission shall be wound up and any surplus funds shall be distributed in accordance with the bylaws.
(15) Article XV — Severability and Construction. 601.58(15)(a)(a)
The provisions of this compact shall be severable; and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the compact shall be enforceable.
The provisions of this compact shall be liberally construed to effectuate its purposes.
(16) Article XVI — Binding Effect of Compact and Other Laws. 601.58(16)(a)(a)
Nothing herein prevents the enforcement of any other law of a compacting state, except as provided in par. (b)
For any product approved by or certified to the commission, the rules, uniform standards, and any other requirements of the commission shall constitute the exclusive provisions applicable to the content, approval, and certification of such products. For advertisement that is subject to the commission's authority, any rule, uniform standard, or other requirement of the commission that governs the content of the advertisement shall constitute the exclusive provision that a commissioner may apply to the content of the advertisement. Notwithstanding the foregoing, no action taken by the commission shall abrogate or restrict any of the following:
Remedies available under state law related to breach of contract, tort, or other laws not specifically directed to the content of the product.
State law relating to the construction of insurance contracts.
The authority of the secretary of agriculture, trade and consumer protection or the attorney general of the state, including, but not limited to, maintaining any actions or proceedings, as authorized by law.
All insurance products filed with individual states shall be subject to the laws of those states.
All lawful actions of the commission, including all rules and operating procedures promulgated by the commission, are binding upon the compacting states. All agreements between the commission and the compacting states are binding in accordance with their terms. Upon the request of a party to a conflict over the meaning or interpretation of commission actions, and upon a majority vote of the compacting states, the commission may issue advisory opinions regarding the meaning or interpretation in dispute.
In the event any provision of this compact exceeds the constitutional limits imposed on the legislature of any compacting state, the obligations, duties, powers, or jurisdiction sought to be conferred by that provision upon the commission shall be ineffective as to that compacting state, and such obligations, duties, powers, or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which such obligations, duties, powers, or jurisdiction are delegated by law in effect at the time this compact becomes effective.
History: 2007 a. 168
PROCEDURES AND ENFORCEMENT
Auxiliary procedural powers.
The commissioner may administer oaths, take testimony, issue subpoenas and take depositions in connection with any hearing, meeting, examination, investigation or other proceeding that the commissioner may conduct.
History: 1979 c. 102
s. 236 (6)
Whenever chs. 600
expressly so provide, the commissioner shall hold a hearing before issuing an order.
(2) Special insurance hearings.
shall apply to all hearings under chs. 600
, except those for which special procedures are prescribed.
(3) Adjudicatory hearings.
In addition to the requirements of ch. 227
, the following provisions apply:
Whenever an order is issued without a hearing, any person aggrieved by the order may demand a hearing within 30 days after the date on which the notice of the order was mailed. Failure to demand a hearing within the period prescribed therefor is waiver of a hearing. The demand shall be in writing and shall be served on the commissioner by delivering a copy to the commissioner or by leaving it at the commissioner's office. The commissioner shall thereupon hold a hearing not less than 10 nor more than 60 days after service of the demand.
Reduction and extension of periods.
Upon request of the person demanding the hearing or of any other aggrieved person, the commissioner may reduce or extend the period prescribed by par. (a)
for holding a hearing.
(4) Fees in investigations and hearings.
The fees for stenographic services in investigations, examinations, and hearings may not exceed the sum provided for like services in the circuit court. The fees of officers, witnesses, interpreters, and stenographers on behalf of the commissioner or the state shall be paid by the secretary of administration, authorized by the certificate of the commissioner, and shall be charged to the appropriation under s. 20.145 (1) (g) 1.
No natural person is excused from attending and testifying or from producing any document or record before the commissioner, or from obedience to the subpoena of the commissioner, or from appearing in any proceeding instituted by the commissioner, on the ground that the testimony or evidence required from the person may tend to incriminate the person or subject the person to a penalty or forfeiture; but no such person may be criminally prosecuted for or on account of his or her testimony or evidence, after claiming privilege against self-incrimination, except that the person testifying is not exempt from prosecution and punishment for perjury, false swearing or contempt committed in testifying.
See also ch. Ins 5
, Wis. adm. code.
Legislative Council Note on sub. (5), 1975: This replaces ss. 207.13 and 201.53 (11) and (12) [repealed by this act]. Section 207.13 was in the unfair insurance business methods chapter but applied in terms “to any hearing". This new provision is even broader in proceedings covered. It is modeled after the securities act provision (s. 551.56 (3) of the statutes) with one phrase deleted because s. 601.18 makes it unnecessary, and other changes, some editorial and one limiting the scope of the immunity to criminal prosecution. Other similar provisions are to be found in s. 93.17 (department of agriculture), s. 97.20 (10) (same; food regulation), s. 111.07 (employment relations commission), s. 196.48 (public service commission), and s. 972.08 (criminal proceedings). Section 201.53 (11) and (12) only applied in terms to s. 201.53, which contained a miscellaneous group of provisions, mostly concerning unfair marketing practices, but it applied very broadly to all proceedings and, apparently, even informal requests for information. [Bill 16-S]
Notice and effective date of orders. 601.63(1)(1)
Notice to person addressed by order.
Notice of any order by the commissioner shall be served under s. 227.48
(2) Notification to agents of revocation of certificate of authority of insurer.
Upon issuance of any order limiting, suspending or revoking an insurer's authority to do business in this state, the commissioner shall notify by mail all agents of the insurer of whom the commissioner has record. The commissioner shall also publish a class 1 notice of the order under ch. 985
(3) Delay of effective date.
Except as provided in sub. (4)
or as expressly provided otherwise by statute, all orders of the commissioner shall take effect 10 days after notice under sub. (1)
or at a later date specified in the order.
(3m) Hearing request.
If the order was issued without a hearing, any person aggrieved by the order may demand a hearing under s. 601.62 (3) (a)
. If no demand for a hearing is made within the prescribed time, the order is final.
(4) Suspension of order.
Whenever a hearing is demanded under s. 601.62 (3) (a)
or a rehearing is requested under s. 227.49
, the commissioner may suspend the order or any part thereof until after the hearing or rehearing. If the commissioner refuses to suspend the order, any person aggrieved thereby may seek a court order under ch. 813
to restrain enforcement of the order until after the hearing or rehearing.
(5) Actions subject to approval or disapproval. 601.63(5)(a)(a) Required approval.
Whenever the law requires the commissioner's approval for a certain action, the action is not effective until expressly approved. The approval is deemed refused if the commissioner does not act within 60 days after receiving the application for approval.
Whenever the law provides that a certain action does not become effective if disapproved by the commissioner within a certain period, the action may be made effective prior to the expiration of the period by being affirmatively approved by the commissioner.
do not apply to the extent that the law specifically provides otherwise.
History: 1971 c. 40
; Sup. Ct. Order, 67 Wis. 2d 585, 776 (1975); 1975 c. 218
; 1975 c. 414
; 1977 c. 26
; 1977 c. 203
; 1979 c. 102
; 1985 a. 182
; 1995 a. 396
Enforcement procedure. 601.64(1)(1)
Injunctions and restraining orders.
The commissioner may commence an action in circuit court in the name of the state to restrain by temporary or permanent injunction or by temporary restraining order any violation of chs. 600
or s. 149.13
, 2011 stats., any rule promulgated under chs. 600
, or any order issued under s. 601.41 (4)
. The commissioner need not show irreparable harm or lack of an adequate remedy at law in an action commenced under this subsection.
(2) Compulsive forfeitures.
If a person does not comply with an order issued under s. 601.41 (4)
within 2 weeks after the commissioner has given the person notice of the commissioner's intention to proceed under this subsection, the commissioner may commence an action for a forfeiture in such sum as the court considers just, but not exceeding $5,000 for each day that the violation continues after the commencement of the action until judgment is rendered. No forfeiture may be imposed under this subsection if at the time the action was commenced the person was in compliance with the order, nor for any violation of an order occurring while any proceeding for judicial review of the order was pending, unless the court in which the proceeding was pending certifies that the claim of invalidity or nonapplicability of the order was frivolous or a sham. If after judgment is rendered the person does not comply with the order, the commissioner may commence a new action for a forfeiture and may continue commencing actions until the person complies. The proceeds of all actions under this subsection, after deduction of the expenses of collection, shall be paid into the common school fund of the state.
(3) Forfeitures and civil penalties. 601.64(3)(a)(a)
Whoever violates an effective order issued under s. 601.41 (4)
, any insurance statute or rule, or s. 149.13
, 2011 stats., shall forfeit to the state twice the amount of any profit gained from the violation, in addition to any other forfeiture or penalty imposed.
Forfeiture for violation of order.
Whoever violates an order issued under s. 601.41 (4)
which is effective under s. 601.63
shall forfeit to the state not more than $1,000 for each violation. Each day that the violation continues is a separate offense.
Forfeiture for violation of statute or rule.
Whoever violates an insurance statute or rule or s. 149.13
, 2011 stats., intentionally aids a person in violating an insurance statute or rule or s. 149.13
, 2011 stats., or knowingly permits a person over whom he or she has authority to violate an insurance statute or rule or s. 149.13
, 2011 stats., shall forfeit to the state not more than $1,000 for each violation, except that whoever violates an insurance statute or rule, intentionally aids a person in violating an insurance statute or rule, or knowingly permits a person over whom he or she has authority to violate an insurance statute or rule shall, if the violation specifically involves a consumer who is an adult at risk, as defined in s. 55.01 (1e)
, or an individual who is at least 60 years of age, forfeit to the state not more than $5,000 for each violation. If the statute or rule imposes a duty to make a report to the commissioner, each week of delay in complying with the duty is a new violation.
The commissioner may order any person to pay a forfeiture imposed under this subsection or s. 601.65
, which shall be paid into the common school fund. If the order is issued without a hearing, the affected person may demand a hearing under s. 601.62 (3) (a)
. If the person fails to request a hearing, the order is conclusive as to the person's liability. The scope of review for forfeitures ordered is that specified under s. 227.57
. The commissioner may cause action to be commenced to recover the forfeiture. Before an action is commenced, the commissioner may compromise the forfeiture.
(4) Criminal penalty.
Whoever intentionally violates or intentionally permits any person over whom he or she has authority to violate or intentionally aids any person in violating any insurance statute or rule of this state, s. 149.13
, 2011 stats., or any effective order issued under s. 601.41 (4)
is guilty of a Class I felony, unless a specific penalty is provided elsewhere in the statutes. Intent has the meaning expressed under s. 939.23
(5) Revocation, suspension and limitation of licenses.
Whenever a licensee of the office other than an insurer, a motor club, an adjuster or an insurance intermediary persistently or substantially violates chs. 600
or an order of the commissioner under s. 601.41 (4)
, or if the licensee's methods and practices in the conduct of business endanger, or financial resources are inadequate to safeguard, the legitimate interests of customers and the public, the commissioner may, after a hearing, in whole or in part revoke, suspend or limit the license.
Legislative Council Note on sub. (5), 1975: This amendment removes insurance intermediaries from the purview of the subsection. Under this act, revocation of an intermediary's license will be governed by s. 628.10 (2). [Bill 16-S]
Marketing firm forfeitures. 601.65(1)(1)
In this section “firm" means a person that markets insurance but does not include an insurer.
A firm is liable for a forfeiture of not more than $1,000 for each violation by an insurance agent of a provision of, a rule promulgated under or an order issued under chs. 600
if the violation is in connection with an insurance policy or group certificate obtained or to be obtained through or from the firm and if any of the following applies:
The firm regularly utilizes the insurance agent to market insurance policies or group certificates.
The primary insurance marketing activities of the insurance agent are in connection with insurance policies or group certificates obtained or to be obtained through or from the firm.
The insurance agent is employed by or is under contract with the firm to market insurance policies or group certificates.
If a provision of, a rule promulgated under or an order issued under chs. 600
imposes a duty to submit a periodic or recurring report to the commissioner, each week of delay in submitting the report constitutes a separate violation. Each day of continued violation of an order issued under s. 601.41 (4)
constitutes a separate violation.
History: 1985 a. 29
Enforcement of policyholder rights.
When the commissioner is satisfied that any nondomestic insurer which no longer has a certificate of authority in this state does or omits to do any act whereby the rights of policyholders who are residents of this state, or who hold contracts issued or delivered in this state, are adversely affected, or whereby its ability to carry out its contracts with those policyholders is impaired, the commissioner may, with the agreement of the attorney general, bring an action in the name of the state on behalf of all policyholders so situated for the purpose of enforcing their rights. The attorney general shall act as attorney for the state in the action and the expenses shall be borne as in other civil actions in behalf of the state. Upon service of the complaint the insurer shall file with the commissioner the names and addresses of all policyholders so situated. A notice of the action shall be mailed to every such policyholder either by the commissioner or by the insurer, as the commissioner determines. Any policyholder affected by the action may intervene.
History: 1979 c. 102
Registered agent for service of process. 601.715(1)(1)
Every authorized insurer shall continuously maintain in this state a registered agent for service of process, notice or demand on the insurer. The authorized insurer shall file the name and address of the registered agent with the commissioner. The registered agent may be any of the following:
A domestic corporation, nonstock corporation or limited liability company incorporated or organized in this state with a business office in this state.
A foreign corporation or limited liability company authorized to transact business in this state with a business office in this state.
An authorized insurer may change its registered agent by delivering to the commissioner for filing a statement of registered agent change that is signed by an officer of the insurer and that includes all of the following information:
The name and home office address of the authorized insurer.
The complete address of the registered agent, as changed.
Any other information that the commissioner may require.
An authorized insurer may change its registered agent no more than one time per year.
A registered agent of an authorized insurer may change its registered agent address by doing all of the following:
Notifying in writing the authorized insurer for which the registered agent is acting.
Delivering to the commissioner for filing a statement that includes all of the following:
The name and home office address of the authorized insurer for which the registered agent is acting.