Incorporators’ liability and organization expenses

611.18 Incorporators’ liability and organization ex- assessments may be separately levied. A full year’s premium penses. (1) LIABILITY. The incorporators shall be jointly and shall be paid with each application and the aggregate premium severally liable for all organizational and promotional expenses shall be at least $50,000 for each such class. If at any time while and liabilities incurred prior to the issuance of the certificate of the corporation is an assessable mutual, the business plan is amended to include an additional class of business on which asauthority. (2) REIMBURSEMENT AND COMPENSATION. (a) Stock corpo- sessments may be separately levied, identical requirements shall rations. 1. ‘Expenses.’ After issuance of the certificate of au- be applicable to each additional class. (d) Same; worker’s compensation. Five employers or more thority, incorporators of a stock corporation who have advanced money or incurred obligations for the reasonable and authorized may join in the formation of an assessable mutual to write only expenses of organization including underwriting may be reim- worker’s compensation insurance if, instead of the requirements bursed in cash from the proceeds of shares subscribed to under of par. (c), policies are simultaneously put into effect that cover at the organization permit, on itemized receipts audited by the com- least 1,500 employees, counting no more than 300 for any emmissioner. Their total reimbursement may not exceed 10 percent ployer. A full year’s premium shall be paid by each employer, aggregating at least $100,000. of the amount received from subscribers. (e) Initial surplus in lieu of initial applications. In place of 2. ‘Personal services.’ Incorporators may be compensated for the reasonable value of personal services actually performed initial applications and premium payments for any class of busiby the issuance to them of shares not exceeding in value in the ag- ness, the corporation may provide the minimum permanent surgregate 10 percent of the amount received from the subscription plus and initial expendable surplus that the commissioner would require for a nonassessable mutual organizing to do that class of for shares under the organization permit. 3. ‘Aggregate expenses and remuneration.’ The aggregate business under like conditions. The class of business shall neverpayment under subds. 1. and 2. may not exceed 15 percent of the theless be assessable until conversion under s. 611.77 (1). (5) MUTUALS WITH OPEN CONTRACTS. A mutual organized amount received for shares subscribed to under the organization permit, including the shares purchased under s. 611.32 (1) or (2), under this chapter need not have a permanent surplus if it issues only contracts the benefits of which may be reduced by action of and shall conform to the statement made under s. 611.13 (2) (e). (b) Mutuals. After issuance of the certificate of authority, in- the board if assets are not sufficient to provide the protection corporators of a mutual who have advanced money or incurred specified in the contracts. The terms and format of any such open obligations for the reasonable and authorized expenses of organi- contract provision must be approved by the commissioner before zation may be reimbursed in cash from the proceeds of subscrip- the mutual is given a certificate of incorporation. (6) PROVIDERS’ CONTRACTS. Any corporation under this tions for mutual bonds and contribution notes, on itemized receipts audited by the commissioner. The total reimbursement chapter which promises in its policies to supply services in lieu of may not exceed 15 percent of the amount received for the bonds or in addition to indemnity, on a basis giving the insurer no option whether it will supply services or pay indemnity, shall mainand notes. History: 1971 c. 260. tain such contracts with providers that it can be reasonably expected that services will be provided as promised in its contracts.