611.23 Municipal insurance mutuals. (1) APPLICABLE RULES. On application by the organizers of a municipal insurance mutual under s. 611.11 (4), the commissioner may by order, after a hearing, relax any requirements of this chapter to facilitate the formation, financing and governance of the mutual. In the same order, the commissioner shall impose substitute requirements designed to implement the purposes of s. 611.02 (2) as elaborated in this chapter. (2) REGULATION. Except as provided in sub. (3), the provi-
May 22, 2026, are designated by NOTES. (Published 5-22-26)
Updated 23-24 Wis. Stats. 6 DOMESTIC STOCK AND MUTUAL INSURANCE CORPORATIONS sions of chs. 600 to 646 that apply to other mutuals organized or itator may transform the liens into ownership interests under s. operating under this chapter apply also to municipal insurance 645.33 (5). mutuals. (f) Ownership. Assets allocated to segregated accounts are (3) INAPPLICABLE PROVISIONS. Chapters 604 to 607, 612 to the property of the corporation, which is not and shall not hold it619, 625 and 646 do not apply to such mutuals. The commis- self out to be a trustee of the assets. sioner may by order, after a hearing, exempt such a mutual from (g) Common assets. A corporation may own a particular asset any other provisions on a finding that they are unnecessary for the in determinate proportions for segregated accounts, for its general protection of the interests of the municipalities and their citizens. account or as a trustee when acting as such within its legal History: 1977 c. 346; 1979 c. 89; 1981 c. 20 s. 2202 (26) (c); 1995 a. 197. powers. NOTE: Chapter 346, laws of 1977, which created this section, has an exten(h) Transfer. The corporation may by an identifiable act sive note explaining the section. transfer assets for fair consideration among the segregated ac611.24 Segregated accounts in general. (1) MANDA- counts, the general account and any trust accounts of the TORY SEGREGATED ACCOUNTS. A corporation shall establish corporation. segregated accounts for the following classes of insurance busi(i) Expenses, loans, and services. The general account of the ness, if it also does other classes of insurance business: corporation, or any segregated account, may for a fair considera(a) Mortgage guaranty insurance; tion provide loans or guarantees in connection with, perform ser(am) Unless the corporation is exempted by the commissioner vices for, or reinsure other accounts, subject to rules promulgated by rule or order, financial guaranty insurance, if the corporation by the commissioner. Generally accepted accounting principles commences this class of insurance business on or after March 25, and realistic actuarial tables may be considered to ascertain what 1988, or if the corporation engages in this class of business on or is a fair consideration. Notwithstanding s. 645.68, the commissioner may assign a general or segregated account obligation to a after November 1, 1988; and (b) Life insurance including fixed and variable annuities. Dis- segregated account an order of distribution higher in priority than provided for under s. 645.68 (5). ability insurance may be included in a life insurance account. History: 1971 c. 260; 1979 c. 102 s. 236 (5); 1979 c. 109; 1981 c. 314 s. 146; (2) OPTIONAL SEGREGATED ACCOUNTS. With the approval of 1987 a. 167; 2009 a. 342. the commissioner, a corporation may establish a segregated account for any part of its business. The commissioner shall ap- 611.25 Special provisions for separate accounts for prove unless he or she finds that the segregated account would be variable contracts. (1) TERMINOLOGY. Separate accounts under this section form a special category of segregated accounts contrary to the law or to the interests of any class of insureds. and may be designated by any appropriate name the corporation (3) SPECIAL PROVISIONS FOR SEGREGATED ACCOUNTS. (a) wishes to use. Capital and surplus. The commissioner shall specify in the cer(2) FORMATION. With the approval of the commissioner, any tificate of authority of a newly organized corporation the minicorporation may establish one or more separate accounts and almum capital or the minimum permanent surplus and the initial locate to them any amounts paid or remitted to or held by the corexpendable surplus to be provided for each segregated account. poration under designated contracts or classes of contracts which If a segregated account is established after a certificate of author- amounts are to be applied to provide benefits payable partly or ity has been issued, the commissioner shall require the corpora- wholly in variable dollar amounts. Such amounts may also be aption to have and maintain an adequate amount of capital and sur- plied to provide benefits in fixed and guaranteed dollar amounts plus in the segregated account. and other incidental benefits. (b) Identification. The income and assets attributable to a (3) SPECIAL RIGHTS AND PROCEDURES. To the extent necessegregated account shall always remain identifiable with the par- sary to comply with the federal investment company act of 1940, ticular account but unless the commissioner so orders, the assets as now or later amended, or any rules issued thereunder, the corneed not be kept physically separate from other assets of the cor- poration may adopt special procedures for the conduct of the poration. The income, gains and losses, whether or not realized, business and affairs of a separate account, and may, for persons from assets attributable to a segregated account shall be credited having beneficial interests therein, provide special voting and to or charged against the account without regard to other income, other rights, including special rights and procedures relating to gains or losses of the corporation. investment policy, investment advisory services, selection of cer(c) Charges. Except under par. (e), assets attributable to a tified public accountants, and selection of a committee, the memsegregated account shall not be chargeable with any liabilities bers of which need not be otherwise affiliated with the corporaarising out of any other business of the corporation, nor shall any tion, to manage the business and affairs of the account. assets not attributable to the account be chargeable with any lia(4) APPLICABLE GENERAL PROVISIONS. Separate accounts bilities arising out of it, except under par. (i). under this section are subject to s. 611.24 (3). History: 1971 c. 260. (d) Incidental business. Incidental business done by a corporation under s. 610.21 may be done under the general account or 611.26 Subsidiaries. (1) INSURANCE SUBSIDIARIES. An under any segregated account approved by the commissioner. Ex- insurance corporation may form or acquire subsidiaries to do any penses and income for such business shall be allocated among the lawful insurance business. There is no limit on the amount of ingeneral account and all segregated accounts in accordance with vestment in such subsidiaries except that the commissioner may generally accepted accounting principles. by order or rule establish a limit and, for purposes of ss. 623.11 (e) Delinquency proceedings. Each segregated account shall and 623.12, the total value of the outstanding shares of such a be deemed an insurer within the meaning of s. 645.03 (1) (f). A subsidiary shall be deemed to equal the amount of surplus posliquidation order under s. 645.42 for the general account or for sessed by the subsidiary in excess of its security surplus, as deterany segregated account shall have effect as a rehabilitation order mined by the commissioner under s. 623.12. under s. 645.32 for all other accounts of the corporation. Claims (2) INVESTMENT SUBSIDIARIES. An insurance corporation remaining unpaid after completion of the liquidation under ch. may form or acquire subsidiaries to hold or manage any assets 645 shall have liens on the interests of shareholders, if any, in all that it might hold or manage directly. There is no limit on investof the corporation’s assets that are not liquidated, and the rehabil- ment in such subsidiaries except that imposed by s. 620.23 (3). 611.23
May 22, 2026, are designated by NOTES. (Published 5-22-26)
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Updated 23-24 Wis. Stats. DOMESTIC STOCK AND MUTUAL INSURANCE CORPORATIONS
(3) ANCILLARY SUBSIDIARIES. (a) Authorization. An insurance corporation may form or acquire subsidiaries to perform functions or provide services that are ancillary to its insurance operations. It may have up to 10 percent of its assets invested in such subsidiaries, unless the commissioner by order or rule provides otherwise. (b) Purposes. Subsidiaries are ancillary subsidiaries if they are engaged principally in one or more of the following: 1. Acting as an insurance agent. 2. Investing, reinvesting or trading in securities, or acting as a securities broker, dealer or marketing representative, for its own account or for the account of any affiliate. 3. Managing of investment companies registered under the federal investment company act of 1940, as amended, including related sales and services. 4. Providing investment advice and services. 5. Acting as administrative agent for a government instrumentality performing an insurance, public assistance or related function. 6. Providing services related to insurance operations, including accounting, actuarial, appraisal, auditing, claims adjusting, collection, data processing, loss prevention, premium financing, safety engineering and underwriting services. 7. Holding or managing property used by the corporation alone or with its affiliates for the convenient transaction of its business. 8. Providing such other services or performing such other activities as the commissioner may declare ancillary by rule. 9. Owning corporations which would be authorized as subsidiaries under subds. 1. to 8. and under subs. (1) and (2). (4) OTHER SUBSIDIARIES. An insurance corporation may form or acquire other subsidiaries than those under subs. (1) to (3). The investment in such subsidiaries may be counted toward satisfaction of the compulsory surplus requirement of s. 623.11 and the security surplus standard of s. 623.12 to the extent that the investment is a part of the leeway investments of s. 620.22 (9) for the first $200,000,000 of assets or to the extent that the investment is within the limitations under s. 620.23 (2) (a) and (b) for other assets. The commissioner may limit investment in subsidiaries under this subsection by rule or order. Unless approved by the commissioner, an insurance corporation may not do any of the following: (a) Invest in one or more subsidiaries more than 10 percent of its assets or 50 percent of its capital and surplus, whichever is less. (b) Invest in one or more subsidiaries to the extent that the insurer’s capital and surplus with regard to policyholders will not be reasonable in relation to the insurer’s outstanding liabilities or adequate to meet the insurer’s financial needs. (5) NOTICE TO COMMISSIONER. An insurance corporation shall notify the commissioner promptly of the formation or acquisition of any subsidiary under this section. History: 1971 c. 260; 1979 c. 279 s. 9; 1981 c. 307; 1999 a. 30; 2003 a. 261; 2007 a. 170.