Initial capital and surplus requirements

611.19 Initial capital and surplus requirements. (1) (7) REDUCTION OF MINIMUM SURPLUS. The commissioner MINIMUM CAPITAL AND PERMANENT SURPLUS. The commissioner may by rule establish the minimum capital for a stock cor- may by order reduce the minimum amounts of surplus required poration or the minimum permanent surplus for a nonassessable under subs. (1) and (2) if in the commissioner’s opinion the exmutual organized under this chapter. In the absence of such a tent and nature of providers’ contracts under sub. (6), financial rule, the minimum capital or minimum permanent surplus shall guarantees and other support by financially sound private or pubbe $2,000,000 or such greater amount as the commissioner spec- lic corporations, a pressing social need in a particular community for the formation of a mutual insurance corporation to provide ifies by order. (2) INITIAL EXPENDABLE SURPLUS. A corporation organized needed insurance coverage, or other special circumstances, jusunder this chapter shall have an initial expendable surplus, after tify the proposed reduction in the required surplus. A person payment of all organizational expenses, of at least 50 percent of who will directly compete with the proposed insurer is aggrieved the minimum capital or minimum permanent surplus specified within the meaning of s. 601.62 (3) (a). (8) HEALTH MAINTENANCE ORGANIZATION INSURER. This under sub. (1), or such other percentage as the commissioner section does not apply to a health maintenance organization inspecifies by order. (4) ASSESSABLE MUTUALS. (a) Reduced permanent surplus. surer that is subject to s. 609.96. History: 1971 c. 260; 1975 c. 147 s. 54; 1979 c. 261; 1985 a. 335; 1989 a. 23, An assessable mutual organized under this chapter need not have 303. a permanent surplus if the assessment liability of its policyholders is unlimited. If assessments are limited to a specified amount 611.20 Certificate of authority. (1) APPLICATION. The or a specified multiple of annual advance premiums, the mini- corporation may apply for a certificate of authority at any time mum permanent surplus shall be the amount that would be re- prior to the expiration of its organization permit. The application quired under sub. (1) if the corporation were not assessable, re- shall include a statement by a principal officer of any material duced by an amount that reasonably reflects the value of the pol- changes that have already taken place or are likely to take place in icyholders’ assessment liability in satisfying the financial needs the facts on which the issuance of the organization permit was based, and if any material changes are proposed in the business of the corporation. (b) Initial expendable surplus. An assessable mutual orga- plan, the additional information about such changes that would be nized under this chapter shall have an initial expendable surplus required if an organization permit were then being applied for. (2) ISSUANCE. (a) The commissioner shall issue a certificate of at least $100,000, after payment of all organizational expenses. (c) Initial applications; general. Except under pars. (d) and of authority, if he or she finds: (e), no certificate of authority shall be issued to an assessable mu1. That cash or property authorized under s. 611.14 (1) (a) has been received sufficient to satisfy the requirements of s. 611.19; 2. That there is no basis for revoking the organization permit under s. 611.16 (2); and 3. That all other applicable requirements of the law have been met. (b) The certificate of authority shall specify any limits placed on the insurance business that may be carried on by the corporation and may, within the powers given the commissioner by law, specify limits on its methods of operation. (3) EFFECT. Upon the issuance of the certificate: (a) The board shall authorize and direct the issuance of shares, bonds or notes subscribed to under the organization permit, and of insurance policies upon qualifying applications made under the organization permit; and (b) The commissioner shall authorize the release to the corporation of all funds held in escrow under s. 611.15. (4) ALTERATION OF CERTIFICATE OF AUTHORITY. (a) Upon application. A corporation may at any time apply to the commissioner for a new or amended certificate of authority, removing, altering or adding limits on its business or methods of operation. The application shall contain or be accompanied by so much of the information in s. 611.13 (2) as the commissioner reasonably requires. The commissioner shall issue the new certificate as requested if he or she finds: 1. That the corporation’s capital and surplus are adequate to support the proposed operations under the new certificate; and 2. That the proposed business would not be contrary to the law or to the interests of insureds or the public. (b) By commissioner. If the commissioner issues a summary order under s. 645.21 against a corporation, he or she may also revoke the corporation’s certificate and issue a new one with the limits the commissioner deems necessary. (5) DOMESTIC SURPLUS LINES INSURANCE. The commissioner may issue to a domestic insurer a certificate of authority to do business in this state as a domestic surplus lines insurer, as defined in s. 618.40 (3m). History: 1971 c. 260; 1979 c. 102 ss. 96, 236 (5); 1989 a. 303; 2017 a. 16.