Chapter 616, MISCELLANEOUS INSURERS

616.03 Designation of a mutual insurer as a school benefit insurer. A mutual insurer engaged in no activities other than those specified in s. 616.06 may apply to the commissioner for designation as a school benefit insurer. If the commissioner finds that the insurer is engaged i…

616.06 Continuation of existing school benefit plans. A plan directed by schools or school authorities in this state, which was organized under s. 185.991, 1977 stats., prior to May 11, 1980 and is operating on a nonprofit basis without capital stock, may continue to operate unde…

616.07 Certificate of authority. (1) ISSUANCE. Within 90 days after May 11, 1980, each plan authorized under s. 616.06 shall apply to the commissioner for a certificate of authority to continue the business it was doing on that date. The commissioner shall issue the certificate u…

616.08 Organization of new insurers. (1) GENERAL. Except as provided in sub. (2), new insurers may be organized exclusively for the purposes stated in s. 616.06 pursuant to the procedures for mutual insurers specified in ch. 611. 616.54 616.56 616.58 616.60 616.62 616.71 616.72 6…

616.09 Applicability of other statutes. (1) EXISTING ORGANIZATIONS UNDER S. 616.06. (a) 1. Except as provided in subd. 2., plans authorized under s. 616.06 are not subject to chs. 600 to 646. 2. Plans authorized under s. 616.06 are subject to s. 610.21, 1977 stats., s. 610.55, 19…

616.10 Exemption from taxation. Every mutual designated a school benefit insurer under s. 616.03, every plan authorized under s. 616.06, and every corporation organized under s. 616.08 is declared to be a charitable and benevolent corporation, and its property, real, personal and…

616.14 Limitations applicable to plans under s. 616.06. (1) GOVERNING BODY. The governing body of a plan shall be the same as the governing body of the sponsoring organization, but must have at least 3 members. If the governing body of the sponsoring organization consists of fewe…

616.18 Restrictions on transactions. 616.18(1)(1) Voidable transactions. Any material transaction between a plan or corporation authorized under this subchapter and one or more of its management or members of its governing board, or with any person in a position to influence the …

616.20 Conversion of plans under s. 616.06 to mutuals under ch. 611 or service insurance corporations under ch. 613. (1) AUTHORIZATION. Under a proposal proposed by the officers of a plan operating under s. 616.06 and approved by the commissioner and by a majority of the members …

616.50 Definitions. In this subchapter: (1) “Administration” includes any of the following activities performed on behalf of a provider: (a) Approving or disapproving claims, paying claims, or controlling the claims adjustment process. (b) Arranging for or controlling the purchas…

616.52 Applicability. (1) This subchapter does not apply to any of the following: (a) Warranties, as defined in s. 100.203 (1) (g), 100.205 (1) (g), or 616.50 (14). (b) Maintenance agreements. (c) Service contracts offered by public utilities on their devices for the transmission…

616.54 Requirements for doing business. 616.54(1)(1) Appointment of administrator. A provider may, but is not required to, appoint an administrator to be responsible for any or all of the administration of service contracts and compliance with this subchapter. Except as provided …

616.56 Form filing and required disclosures. (1) A service contract may not be marketed, sold, offered for sale, issued, made, proposed to be made, or administered in this state unless the service contract has been filed with and approved by the commissioner in a manner and forma…

616.58 Prohibited acts. (1) (a) A provider shall not use in its name used in this state the words “insurance,” “casualty,” “surety,” or “mutual” or any other words descriptive of the insurance, casualty, or surety business; or a name deceptively similar to the name or description…

616.60 Record-keeping requirements. (1) (a) A provider shall keep accurate accounts, books, and records concerning transactions regulated under this subchapter. (b) A provider’s accounts, books, and records shall include all of the following: 1. Copies of each type of service con…

616.62 Enforcement. (1) The commissioner may conduct examinations of providers, administrators, servicer contract sellers, or other persons under ss. 601.43 to 601.45 to enforce the provisions of this subchapter and protect service contract holders in this state. Upon request of …

616.71 Motor club service; definitions. As used in this subchapter, unless the context or subject matter otherwise requires: (1) “Agent” means one who solicits the purchase of service contracts, as herein defined, or transmits for another any such contract, or application therefo…

616.72 License to sell motor club service. No company shall sell or offer for sale any motor club service without first having deposited with the commissioner the sum of $25,000, in cash or securities approved by the commissioner, or, in lieu thereof, a bond in the form prescribe…

616.74 Manner of obtaining company license; fee. (1) No certificate of authority shall be issued by the commissioner until the company has filed with the commissioner the following: (a) A formal application in such form and detail as the commissioner may require, executed under o…

616.76 Form of service contract. No service contract shall be executed, issued, or delivered in this state until the form thereof has been approved in writing by the commissioner. History: 1977 c. 339 s. 8; Stats. 1977 s. 616.76. 616.77 Execution of service contract. Every servic…

616.77 Execution of service contract. Every service contract, executed, issued, or delivered in this state shall be made in duplicate, and shall be dated and signed by the company issuing the service contract and by the party purchasing the service contract, and one copy shall be…

616.78 Contents of contract. No service contract shall be executed, issued, or delivered in this state unless it contains the following: (1) The exact corporate or other name of the company. (2) The exact location of its home office and of its usual place of business in this stat…

616.79 Only agents to solicit business. No person shall solicit, or aid in the solicitation of, another person to purchase a service contract issued by a company not duly licensed under this subchapter. History: 1977 c. 339 ss. 8, 44; 1979 c. 355 s. 236.

616.80 Misrepresentations forbidden. No company, and no officer or agent thereof, shall orally, or in writing, misrepresent the terms, benefits, or privileges of any service contract issued, or to be issued, by it. History: 1977 c. 339 s. 8; Stats. 1977 s. 616.80.

616.81 Company always bound by contract. Any service contract made, issued, or delivered contrary to any provision of this subchapter shall nevertheless be valid and binding on the company. History: 1977 c. 339 ss. 8, 44; Stats. 1977 s. 616.81; 1979 c. 355 s. 236.

616.82 Person exempted. Nothing in this subchapter applies to an authorized attorney at law acting in the usual course of the profession, nor to any insurance company, bonding company, or surety company now or hereafter duly and regularly licensed and doing business as such under…