Chapter 612, TOWN MUTUALS
30 sections in this chapter.
Wis. Stat. § 612.01 Purposes, scope, interpretation and definitions
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612.01 Purposes, scope, interpretation and definitions. (1) PURPOSES. The purposes of this chapter are: (a) To preserve and encourage cooperative low-cost insurance; (b) To establish a framework in which mutuality in its true sense can be preserved, and small mutual corporations …
Wis. Stat. § 612.02 Organization of town mutuals
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612.02 Organization of town mutuals. 612.02(1)(1) Incorporating members. A town mutual may be organized by 100 or more adult natural persons each of whom owns an interest in a separate insurable risk in the territory described in sub. (2) (c), and each of whom agrees to insure th…
Wis. Stat. § 612.03 General powers and effect of unauthorized corporate acts
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612.03 General powers and effect of unauthorized corporate acts. Sections 181.0302 (intro.), (1) to (8), (11) to (13), (18) and (19) and 181.0304 apply to town mutuals, except that references to “attorney general” shall be read as “commissioner”. Section 181.0302 (7) is subject t…
Wis. Stat. § 612.04 Amendments of articles, bylaws and business plan
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612.04 Amendments of articles, bylaws and business plan. (1) RIGHT TO AMEND ARTICLES AND MAKE AND AMEND BYLAWS. Sections 181.0207 and 181.1001 apply to town mutuals. A town mutual may make and amend bylaws as provided by the articles or, in the absence of any such provision, in t…
Wis. Stat. § 612.10 Membership
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612.10 Membership. (1) CREATION AND DURATION OF MEMBERSHIP. Each policyholder is a member of the town mutual and has all the rights and duties of a member during the time his or her policy is in effect. The articles or bylaws may establish rules determining which of multiple poli…
Wis. Stat. § 612.11 Meetings of members
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612.11 Meetings of members. (1) PLACE OF MEETINGS. All meetings of members shall be held within the territorial limits of the town mutual, except under s. 612.21 (4). (2) NOTICE OF MEETING. (a) Annual meeting. Notice of the time and place of the annual meeting shall be given to e…
Wis. Stat. § 612.12 Voting rights of members
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612.12 Voting rights of members. (1) MATTERS SUBJECT TO VOTE. Members of town mutuals shall have the right to vote on the following matters: (a) Election of directors; (b) Amendment of articles; (c) Merger, transfer of business under s. 612.24, conversion and voluntary dissolutio…
Wis. Stat. § 612.13 Directors and officers
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612.13 Directors and officers. 612.13(1)(1) Number and classification. Town mutuals shall have at least 5 directors divided into 3 classes as nearly equal in size as possible. 612.13(1m)(1m) Inside directors. 612.13(1m)(a)(a) Beginning 2 years after April 30, 2004, all of the fol…
Wis. Stat. § 612.14 Reports
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612.14 Reports. An officer or person designated by an officer of the company shall present to the annual meeting written reports showing the condition of the town mutual on the previous December 31 and its activity during the preceding calendar year, including any information req…
Wis. Stat. § 612.15 Supervision of management changes
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612.15 Supervision of management changes. (1) ELECTIONS. (a) Report. The name and residence of each person selected as a director or officer of a town mutual, and such pertinent biographical data and financial information as the commissioner may reasonably require by rule, shall …
Wis. Stat. § 612.16 Exclusive agency and management contracts
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612.16 Exclusive agency and management contracts. Sections 611.66 and 611.67 apply to town mutuals. History: 1973 c. 22.
Wis. Stat. § 612.18 Transactions with affiliates and in which directors and others are interested
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612.18 Transactions with affiliates and in which directors and others are interested. Sections 611.60 and 611.61 apply to town mutuals. History: 1973 c. 22; 1979 c. 102.
Wis. Stat. § 612.21 Merger of town mutuals
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612.21 Merger of town mutuals. (1) CONDITIONS FOR MERGER. Two or more town mutuals authorized to operate in all or part of the same or in contiguous territories not exceeding 16 counties altogether may merge into one of the constituent town mutuals, or into a new town mutual, und…
Wis. Stat. § 612.22 Merger of town mutuals and mutual insurance corporations
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612.22 Merger of town mutuals and mutual insurance corporations. (1) CONDITIONS FOR MERGER. One or more town mutuals may merge with a single domestic mutual under ch. 611. If the domestic mutual is nonassessable, the surviving corporation shall be a mutual under ch. 611. If the d…
Wis. Stat. § 612.23 Conversion of town mutuals into mutual insurance corporations
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612.23 Conversion of town mutuals into mutual insurance corporations. One or more town mutuals may be converted into a single mutual insurance corporation under ch. 611, as follows: (1) CONVERSION PLAN. The board of each participating town mutual shall adopt the same plan of conv…
Wis. Stat. § 612.24 Transfer of business
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612.24 Transfer of business. (1) APPROVAL BY MEMBERS. No action by which a town mutual proposes to transfer to another person or to reinsure any part of its insurance business, other than in the normal and usual course of business, or to sell, lease, exchange, mortgage, pledge or…
Wis. Stat. § 612.25 Voluntary dissolution of town mutuals
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612.25 Voluntary dissolution of town mutuals. A town mutual may be dissolved in the following way: (1) PLAN FOR DISSOLUTION. The board shall adopt a plan for dissolution stating: (a) The reasons for the proposed action; (b) The proposed terms, conditions and procedures for and es…
Wis. Stat. § 612.31 Authorized business
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612.31 Authorized business. (1) PROPERTY INSURANCE. (a) General. Subject to other provisions of this section, a town mutual may insure a member against loss or damage from any cause to any property in which the member has an interest. (b) Extensions. 1. Insurance authorized under…
Wis. Stat. § 612.32 Territory
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612.32 Territory. No town mutual may insure any risks located outside the territory authorized in its articles, except: (1) REAL PROPERTY OUTSIDE TERRITORY. Town mutuals may insure real property and contents in villages and cities partially located in the specified territory, rea…
Wis. Stat. § 612.33 Reinsurance
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612.33 Reinsurance. 612.33(1)(1) Permitted and prohibited reinsurance. A town mutual may cede reinsurance only to an insurer authorized to do business in this state under ch. 611 or 618, or under arrangements which are approved in advance by the commissioner and which are subject…
Wis. Stat. § 612.34 Rates
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612.34 Rates. (1) REGULATION OF ASSESSMENTS. Town mutuals need not file information under ch. 625 about special assessments unless ordered to do so by rule or order of the commissioner. (2) CLASSIFICATIONS. No classification plan for the purpose of determining premiums or assessm…
Wis. Stat. § 612.35 Borrowing and repayment
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612.35 Borrowing and repayment. A town mutual may borrow money to pay losses or expenses, but before obtaining a loan which would bring its indebtedness, including debit balances from reinsurance arrangements under s. 612.33 (1) above 50 percent of its assets including assessment…
Wis. Stat. § 612.36 Investments
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612.36 Investments. (1) GENERAL. Except as provided in sub. (2), town mutuals are subject to ch. 620 but shall be restricted as provided in s. 620.03 (1) unless individually exempted by the commissioner under s. 620.03 (2). In applying the restrictions of ch. 620 all assets of to…
Wis. Stat. § 612.51 Contract forms
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612.51 Contract forms. (2) RULES. The commissioner may by rule prescribe forms to be used for policies, applications or for particular clauses. (3) ARTICLES AND BYLAWS. The articles and bylaws shall be attached to or clearly incorporated by reference in every policy issued by a t…
Wis. Stat. § 612.52 Undertaking to pay premiums and assessments
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612.52 Undertaking to pay premiums and assessments. An applicant for insurance shall sign an undertaking agreeing to pay the advance premiums for any insurance on the applicant’s behalf and any assessment which may be levied in accordance with the terms of the policy, the article…
Wis. Stat. § 612.53 Loss adjustment
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612.53 Loss adjustment. The commissioner may promulgate rules for loss adjustment procedures. History: 1973 c. 22; 2015 a. 90. 612.54 Assessments. (1) CONDITIONS FOR LEVYING AS(a) Mandatory assessments. The board of a town mutual shall levy an assessment whenever the amount of an…
Wis. Stat. § 612.54 Assessments
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612.54 Assessments. 612.54(1)(1) Conditions for levying assessments. 612.54(1)(a)(a) Mandatory assessments. The board of a town mutual shall levy an assessment whenever the amount of any loss or expense that is due exceeds the assets or whenever any required surplus is impaired. …
Wis. Stat. § 612.61 Licensing of agents
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612.61 Licensing of agents. Persons soliciting insurance for town mutuals shall comply with s. 628.05. History: 1973 c. 22; 1975 c. 371. Legislative Council Note, 1975: Present s. 612.61 is replaced by s. 628.05, which is part of this act. The terms remain the same. It is preserv…
Wis. Stat. § 612.70 Waiver of notice and informal action
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612.70 Waiver of notice and informal action. Sections 181.0704, 181.0706, 181.0821 and 181.0823 apply to town mutuals. Section 181.0821 applies to a committee of the board except that references to “board” shall be read as “committee”. History: 1973 c. 22; 1997 a. 79.
Wis. Stat. § 612.81 Register of deeds
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612.81 Register of deeds. No town mutual need file any corporate documents with any register of deeds for corporation law or regulatory purposes. All such documents held by registers of deeds on May 24, 1973, may be disposed of under s. 59.43 (12) (b). History: 1973 c. 22; 1995 a…