Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB437 Compare Versions

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1		-	Date of enactment:
2		-	2023 Assembly Bill 437 Date of publication*:
3		-	2023 WISCONSIN ACT
4		-	AN ACT to repeal 49.45 (12) (a), 601.41 (8), 601.41 (10), 601.415 (12), 601.56, 601.57, 628.92 (5) and 635.10; to
5		-	renumber and amend 601.64 (3) (c); to amend 15.165 (3) (b) 9., 49.45 (12) (b), 601.415 (3), 601.63 (2), 628.10 (2)
6		-	(b), 646.11 (2), 646.51 (1m), 646.51 (3) (am), 646.51 (3) (ar) and 646.51 (3) (b); and to create 601.41 (13), 601.465
7		-	(1m) (c) 9m., 601.64 (3) (c) 2. a., b. and c., 609.98 (5), 611.12 (5), 613.12 (4) and 646.13 (2) (h) of the statutes; relat-
8		-	ing to: various changes to insurance laws and providing a penalty.
9		-	The people of the state of Wisconsin, represented in
10		-	senate and assembly, do enact as follows:
11		-	SECTION 1. 15.165 (3) (b) 9. of the statutes is
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	3	+	2023 - 2024 LEGISLATURE
	4	+	2023 ASSEMBLY BILL 437
	5	+	September 20, 2023 - Introduced by Representatives CALLAHAN and DITTRICH,
	6	+	cosponsored by Senator FELZKOWSKI. Referred to Committee on Insurance.
	7	+	*AUTHORS SUBJECT TO CHANGE*
	8	+	AN ACT to repeal 49.45 (12) (a), 601.41 (8), 601.41 (10), 601.415 (12), 601.56,
	9	+	601.57, 628.92 (5) and 635.10; to renumber and amend 601.64 (3) (c); to
	10	+	amend 15.165 (3) (b) 9., 49.45 (12) (b), 601.415 (3), 601.63 (2), 628.10 (2) (b),
	11	+	646.11 (2), 646.51 (1m), 646.51 (3) (am), 646.51 (3) (ar) and 646.51 (3) (b); and
	12	+	to create 601.41 (13), 601.465 (1m) (c) 9m., 601.64 (3) (c) 2. a., b. and c., 609.98
	13	+	(5), 611.12 (5) and 646.13 (2) (h) of the statutes; relating to: various changes
	14	+	to insurance laws and providing a penalty.
	15	+	Analysis by the Legislative Reference Bureau
	16	+	This bill modifies various insurance statutes that are generally administered
	17	+	by the Office of the Commissioner of Insurance. Specifically, the bill does all of the
	18	+	following:
	19	+	1. Allows the commissioner of insurance to appoint the deputy commissioner,
	20	+	chief legal counsel, or chief financial regulator in OCI to serve as a member on the
	21	+	Wisconsin Retirement Board, rather than limiting the commissioner's designee to an
	22	+	experienced actuary in OCI.
	23	+	2. Eliminates the requirement that the commissioner develop a uniform
	24	+	employee application form that small employer insurers must use when a small
	25	+	employer applies for coverage under a group health benefit plan, including the
	26	+	requirement that small employer insurers must use the form.
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	36	+	3. Eliminates the requirement that the commissioner prescribe, by rule,
	37	+	uniform questions and the format for applications for individual major medical
	38	+	health insurance policies and the requirement that all insurers may use only those
	39	+	questions and that format for individual major medical health insurance policy
	40	+	applications.
	41	+	4. Allows the commissioner to enter directly into a contract for the services of
	42	+	a consultant if OCI is coordinating a review on a regulatory matter with another
	43	+	state's or U.S. territory's insurance department that has already procured the
	44	+	services of the consultant.
	45	+	5. Eliminates the commissioner's remaining responsibility regarding
	46	+	dissolution of the former Health Insurance Risk-Sharing Plan.
	47	+	6. Adds the insurance security fund to the list of persons with whom OCI may
	48	+	confidentially share or from whom OCI may confidentially obtain information.
	49	+	Current law includes on that list a similar fund or other entity in another state but
	50	+	does not expressly include this state's fund.
	51	+	7. Eliminates the requirement that the commissioner study, and provide a
	52	+	report to the legislature and governor on, a) whether the cost of health care
	53	+	administration is likely to be reduced by health insurers' compliance with certain
	54	+	standards in their transactions with health care providers and b) the feasibility and
	55	+	cost-effectiveness of certain requirements related to uniform health insurance
	56	+	identification cards. The bill also eliminates the requirement that the commissioner
	57	+	must promulgate rules depending on the results of those studies.
	58	+	8. Changes the procedures for providing notice of the revocation of an insurer's
	59	+	authority to do business in this state.
	60	+	9. Increases the forfeiture amount, from $1,000 to $5,000 per violation, for a
	61	+	violation of an insurance statute or rule that involves or constitutes fraud.
	62	+	10. Requires a health maintenance organization that participates in the
	63	+	Family Care Program to make a monetary deposit, in an amount determined by the
	64	+	Department of Health Services, to pay for services on behalf of an insolvent or
	65	+	financially hazardous care management organization. The Family Care Program
	66	+	provides community-based long-term care services to eligible individuals. Current
	67	+	law requires a care management organization that provides services under the
	68	+	Family Care Program to make the deposit.
	69	+	11. Allows a domestic stock or mutual insurance corporation to include certain
	70	+	forum selection provisions in its articles of incorporation or bylaws.
	71	+	12. Changes a standard under which the commissioner may revoke, suspend,
	72	+	or limit the license of an insurance marketing intermediary or individual navigator
	73	+	from finding that the licensee “is not of good character” to finding that the licensee
	74	+	“is not competent or trustworthy.” Under current law, proof of competence and
	75	+	trustworthiness are required for the initial issuance of a license.
	76	+	13. Eliminates the financial responsibility requirement under current law that
	77	+	applies to navigators.
	78	+	14. Reduces the number of segregated accounts that compose the insurance
	79	+	security fund, from six to five, by merging the life insurance and annuities accounts.
	80	+	The bill retains the current law requirement that the board of directors of the fund, - 3 -2023 - 2024 Legislature
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	84	+	when it authorizes assessments of insurers that have been ordered liquidated, must
	85	+	continue to estimate the amounts necessary to make payments from the fund and
	86	+	must authorize assessments separately for life insurance policies and for annuity
	87	+	contracts in the merged life insurance and annuities account.
	88	+	15. Changes the manner in which the board calculates assessment amounts for
	89	+	the merged life insurance and annuities account. Under current law, the amount is
	90	+	calculated as a percentage of average annual premiums received in this state by an
	91	+	insurer for life insurance policies and for annuity contracts for the three most recent
	92	+	years. Under the bill, the amount is calculated as a percentage of premiums for the
	93	+	year immediately preceding the year in which the board authorizes the assessment
	94	+	or, if that data is not available, for the most recent year for which that data is
	95	+	available.
	96	+	16. Adds to the powers of the insurance security fund the authority to negotiate
	97	+	and contract with other guaranty associations to provide and receive administrative,
	98	+	claims, and other services that are usual to guaranty associations.
	99	+	For further information see the state fiscal estimate, which will be printed as
	100	+	an appendix to this bill.
	101	+	The people of the state of Wisconsin, represented in senate and assembly, do
	102	+	enact as follows:
	103	+	SECTION 1. 15.165 (3) (b) 9. of the statutes is amended to read:
	104	+	15.165 (3) (b) 9. The commissioner of insurance or an experienced actuary in
	105	+	the office of the commissioner designated by the commissioner the commissioner's
	106	+	designee under s. 601.415 (3).
	107	+	SECTION 2. 49.45 (12) (a) of the statutes is repealed.
	108	+	SECTION 3. 49.45 (12) (b) of the statutes is amended to read:
	109	+	49.45 (12) (b) If the commissioner of insurance promulgates rules under s.
	110	+	601.57 (2), 2021 stats., establishing a health insurance identification card system
	111	+	and its computerized support system, the department shall develop a plan to
	112	+	coordinate a system of machine-readable identification cards for medical assistance
	113	+	recipients with the systems established by the commissioner and shall submit the
	114	+	plan to the governor, and to the legislature under s. 13.172 (2), before issuing a
	115	+	request for proposals under par. (c).
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	130	+	SECTION 4 ASSEMBLY BILL 437
	131	+	SECTION 4. 601.41 (8) of the statutes is repealed.
	132	+	SECTION 5. 601.41 (10) of the statutes is repealed.
	133	+	SECTION 6. 601.41 (13) of the statutes is created to read:
	134	+	601.41 (13) INTERSTATE REGULATORY REVIEWS; CONSULTANT CONTRACTS.
	135	+	Notwithstanding ss. 16.70 to 16.78, the commissioner may enter into a contract for
	136	+	the services of a consultant if all of the following apply:
	137	+	(a) The office and the insurance department of another state are coordinating
	138	+	a review on a regulatory matter.
	139	+	(b) The other state's insurance department has already procured the services
	140	+	of the consultant.
	141	+	SECTION 7. 601.415 (3) of the statutes is amended to read:
	142	+	601.415 (3) WISCONSIN RETIREMENT BOARD. The commissioner or an experienced
	143	+	actuary the deputy commissioner, chief legal counsel, or chief financial regulator in
	144	+	the office designated by the commissioner shall serve as a member of the Wisconsin
	145	+	retirement board under s. 15.165 (3) (b).
	146	+	SECTION 8. 601.415 (12) of the statutes is repealed.
	147	+	SECTION 9. 601.465 (1m) (c) 9m. of the statutes is created to read:
	148	+	601.465 (1m) (c) 9m. The security fund created under ch. 646.
	149	+	SECTION 10. 601.56 of the statutes is repealed.
	150	+	SECTION 11. 601.57 of the statutes is repealed.
	151	+	SECTION 12. 601.63 (2) of the statutes is amended to read:
	152	+	601.63 (2) NOTIFICATION TO AGENTS OF REVOCATION OF CERTIFICATE OF AUTHORITY
	153	+	OF INSURER. Upon issuance of any order limiting, suspending or revoking an insurer's
	154	+	authority to do business in this state, the commissioner insurer shall within 10
	155	+	business days and by separate written notice notify by mail all agents of appointed
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	183	+	SECTION 12
	184	+	ASSEMBLY BILL 437
	185	+	with the insurer of whom and shall provide a copy of the notice to the commissioner
	186	+	has record. The commissioner shall also publish a class 1 notice of the order under
	187	+	ch. 985 revocation in whatever reasonable form the commissioner designates.
	188	+	SECTION 13. 601.64 (3) (c) of the statutes is renumbered 601.64 (3) (c) 1. and
12	189		amended to read:
13		-	15.165 (3) (b) 9. The commissioner of insurance or
14		-	an experienced actuary in the office of the commissioner
15		-	designated by the commissioner the commissioner’s
16		-	designee under s. 601.415 (3).
17		-	SECTION 2. 49.45 (12) (a) of the statutes is repealed.
18		-	SECTION 3. 49.45 (12) (b) of the statutes is amended
19		-	to read:
20		-	49.45 (12) (b) If the commissioner of insurance pro-
21		-	mulgates rules under s. 601.57 (2), 2021 stats., establish-
22		-	ing a health insurance identification card system and its
23		-	computerized support system, the department shall
24		-	develop a plan to coordinate a system of machine−read-
25		-	able identification cards for medical assistance recipients
26		-	with the systems established by the commissioner and
27		-	shall submit the plan to the governor, and to the legisla-
28		-	ture under s. 13.172 (2), before issuing a request for pro-
29		-	posals under par. (c).
30		-	SECTION 4. 601.41 (8) of the statutes is repealed.
31		-	SECTION 5. 601.41 (10) of the statutes is repealed.
32		-	SECTION 6. 601.41 (13) of the statutes is created to
33		-	read:
34		-	601.41 (13) INTERSTATE REGULATORY REVIEWS; CON-
35		-	SULTANT CONTRACTS. Notwithstanding ss. 16.70 to 16.78,
36		-	the commissioner may enter into a contract for the ser-
37		-	vices of a consultant if all of the following apply:
38		-	(a) The office and the insurance department of
39		-	another state are coordinating a review on a regulatory
40		-	matter.
41		-	(b) The other state’s insurance department has
42		-	already procured the services of the consultant.
43		-	SECTION 7. 601.415 (3) of the statutes is amended to
44		-	read:
45		-	601.415 (3) WISCONSIN RETIREMENT BOARD. The
46		-	commissioner or an experienced actuary the deputy com-
47		-	missioner, chief legal counsel, or chief financial regula-
48		-	tor in the office designated by the commissioner shall
49		-	serve as a member of the Wisconsin retirement board
50		-	under s. 15.165 (3) (b).
51		-	SECTION 8. 601.415 (12) of the statutes is repealed.
52		-	SECTION 9. 601.465 (1m) (c) 9m. of the statutes is
53		-	created to read:
54		-	* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
55		-	partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 2023 Assembly Bill 437
56		-	601.465 (1m) (c) 9m. The security fund created
57		-	under ch. 646.
58		-	SECTION 10. 601.56 of the statutes is repealed.
59		-	SECTION 11. 601.57 of the statutes is repealed.
60		-	SECTION 12. 601.63 (2) of the statutes is amended to
61		-	read:
62		-	601.63 (2) NOTIFICATION TO AGENTS OF REVOCATION
63		-	OF CERTIFICATE OF AUTHORITY OF INSURER. Upon issuance
64		-	of any order limiting, suspending or revoking an insurer’s
65		-	authority to do business in this state, the commissioner
66		-	insurer shall within 10 business days and by separate
67		-	written notice notify by mail all agents of appointed with
68		-	the insurer of whom and shall provide a copy of the notice
69		-	to the commissioner has record. The commissioner shall
70		-	also publish a class 1 notice of the order under ch. 985
71		-	revocation in whatever reasonable form the commis-
72		-	sioner designates.
73		-	SECTION 13. 601.64 (3) (c) of the statutes is renum-
74		-	bered 601.64 (3) (c) 1. and amended to read:
75		-	601.64 (3) (c) 1. Whoever violates an insurance
76		-	statute or rule or s. 149.13, 2011 stats., intentionally aids
77		-	a person in violating an insurance statute or rule or s.
78		-	149.13, 2011 stats., or knowingly permits a person over
79		-	whom he or she has authority to violate an insurance
80		-	statute or rule or s. 149.13, 2011 stats., shall forfeit to the
	190	+	601.64 (3) (c) 1. Whoever violates an insurance statute or rule or s. 149.13, 2011
	191	+	stats., intentionally aids a person in violating an insurance statute or rule or s.
	192	+	149.13, 2011 stats., or knowingly permits a person over whom he or she has authority
	193	+	to violate an insurance statute or rule or s. 149.13, 2011 stats., shall forfeit to the
81	194		state not more than $1,000 for each violation, except that.
82		-	2. Notwithstanding subd. 1., whoever violates an
83		-	insurance statute or rule, intentionally aids a person in
84		-	violating an insurance statute or rule, or knowingly per-
85		-	mits a person over whom he or she has authority to violate
86		-	an insurance statute or rule shall, if the violation specifi-
87		-	cally involves a consumer who is an adult at risk, as
88		-	defined in s. 55.01 (1e), or an individual who is at least
89		-	60 years of age, forfeit to the state not more than $5,000
90		-	for each violation. if any of the following applies:
91		-	3. If the statute or rule violated under subd. 1. or 2.
92		-	imposes a duty to make a report to the commissioner,
93		-	each week of delay in complying with the duty is a new
	195	+	2. Notwithstanding subd. 1., whoever violates an insurance statute or rule,
	196	+	intentionally aids a person in violating an insurance statute or rule, or knowingly
	197	+	permits a person over whom he or she has authority to violate an insurance statute
	198	+	or rule shall, if the violation specifically involves a consumer who is an adult at risk,
	199	+	as defined in s. 55.01 (1e), or an individual who is at least 60 years of age, forfeit to
	200	+	the state not more than $5,000 for each violation. if any of the following applies:
	201	+	3. If the statute or rule violated under subd. 1. or 2. imposes a duty to make a
	202	+	report to the commissioner, each week of delay in complying with the duty is a new
94	203		violation.
95		-	SECTION 14. 601.64 (3) (c) 2. a., b. and c. of the
96		-	statutes are created to read:
97		-	601.64 (3) (c) 2. a. The violation specifically
98		-	involves a consumer who is an adult at risk, as defined in
99		-	s. 55.01 (1e).
100		-	b. The violation specifically involves an individual
101		-	who is at least 60 years of age.
102		-	c. The violation involves or constitutes fraud or mis-
103		-	representation.
104		-	SECTION 15. 609.98 (5) of the statutes is created to
105		-	read:
106		-	609.98 (5) FAMILY CARE PROGRAM; DEPOSIT REQUIRED.
107		-	(a) In this subsection, “family care program” means the
108		-	program under ss. 46.2805 to 46.2895 that provides the
109		-	family care benefit, as defined in s. 46.2805 (4).
110		-	(b) A health maintenance organization participating
111		-	in the family care program is subject to s. 648.75.
112		-	SECTION 16. 611.12 (5) of the statutes is created to
113		-	read:
114		-	611.12 (5) FORUM SELECTION PROVISIONS. Section
115		-	180.0145 applies to stock corporations, and s. 181.0163
116		-	applies to mutuals.
117		-	SECTION 16m. 613.12 (4) of the statutes is created to
118		-	read:
119		-	613.12 (4) FORUM SELECTION PROVISIONS. The arti-
120		-	cles or bylaws of a service insurance corporation may
121		-	require, consistent with applicable jurisdictional require-
122		-	ments, that any or all claims pertaining to the internal
123		-	affairs of the service insurance corporation shall be
124		-	brought solely and exclusively in the courts in this state.
125		-	SECTION 17. 628.10 (2) (b) of the statutes is amended
126		-	to read:
127		-	628.10 (2) (b) For other reasons. Except as provided
128		-	in pars. (c) to (d), after a hearing, the commissioner may
129		-	revoke, suspend, or limit in whole or in part the license
130		-	of any intermediary or individual navigator if the com-
131		-	missioner finds that the licensee is unqualified as an
132		-	intermediary or navigator, is not of good character com-
133		-	petent or trustworthy under s. 628.04 (1) (b) 2., or has
134		-	repeatedly or knowingly violated an insurance statute or
135		-	rule or a valid order of the commissioner under s. 601.41
136		-	(4), or if the intermediary’s or navigator’s methods and
137		-	practices in the conduct of business endanger, or finan-
138		-	cial resources are inadequate to safeguard, the legitimate
139		-	interests of customers and the public. Nothing in this
140		-	paragraph limits the authority of the commissioner to
141		-	suspend summarily an intermediary’s or individual navi-
142		-	gator’s license under s. 227.51 (3).
143		-	SECTION 18. 628.92 (5) of the statutes is repealed.
144		-	SECTION 19. 635.10 of the statutes is repealed.
145		-	SECTION 20. 646.11 (2) of the statutes is amended to
146		-	read:
147		-	646.11 (2) ACCOUNTS. The fund shall be composed
148		-	of 6 5 segregated accounts, one for life insurance, one
149		-	for and annuities, one for disability insurance other than
150		-	policies issued or coverage provided by a health mainte-
151		-	nance organization insurer, one for health maintenance
152		-	organization insurers, one for all other kinds of insurance
153		-	subject to this chapter, and an administrative account.
154		-	SECTION 21. 646.13 (2) (h) of the statutes is created
155		-	to read:
156		-	646.13 (2) (h) Negotiate and contract with other
157		-	guaranty associations to provide and receive administra-
158		-	tive, claims, and other services that are usual to guaranty
159		-	associations.
160		-	SECTION 22. 646.51 (1m) of the statutes is amended
161		-	to read:
162		-	646.51 (1m) DUTY TO ASSESS. As soon as practicable
163		-	To meet the board’s obligations under this chapter, after
164		-	a liquidation order has been issued, the board shall esti-
165		-	mate separately for each of the accounts of s. 646.11 (2)
166		-	and separately for life insurance policies and for annuity
167		-	contracts in the life insurance and annuities account, the − 3 − 2023 Wisconsin Act 2023 Assembly Bill 437
168		-	amounts necessary to make the payments provided by
169		-	this chapter and. The board shall authorize assessments
170		-	separately for each account and separately for life insur-
171		-	ance policies and for annuity contracts in the life insur-
172		-	ance and annuities account.
173		-	SECTION 23. 646.51 (3) (am) of the statutes is
174		-	amended to read:
175		-	646.51 (3) (am) General. Except as provided in pars.
176		-	(ar), (b), and (c), the board shall calculate the assessments
177		-	shall be calculated as a percentage of premium premiums
178		-	written in this state by each insurer in the classes pro-
179		-	tected by the accounts under s. 646.11 (2) for the year
180		-	immediately preceding the year in which the board
181		-	authorizes the assessment is authorized by the board.
182		-	SECTION 24. 646.51 (3) (ar) of the statutes is
183		-	amended to read:
184		-	646.51 (3) (ar) Disability. Except as provided in par.
185		-	(c), with respect to the disability insurance policies,
186		-	including policies issued by account under s. 646.11 (2)
187		-	and the health maintenance organization insurers,
188		-	account under s. 646.11 (2), the board shall calculate the
189		-	assessments shall be calculated as a percentage of pre-
190		-	mium premiums written in this state by each insurer in the
191		-	classes protected by the accounts for the year immedi-
192		-	ately preceding the year in which the board authorizes the
193		-	assessment is authorized by the board. If the assessment
194		-	data for the year immediately preceding the year in which
195		-	the board authorizes the assessment is authorized by the
196		-	board is not available when the assessment is called, the
197		-	fund board may use the assessment data for the most
198		-	recent year for which data is available.
199		-	SECTION 25. 646.51 (3) (b) of the statutes is amended
200		-	to read:
201		-	646.51 (3) (b) Life and annuities. Except as provided
202		-	in par. (c), with respect to annuity contracts or life insur-
203		-	ance policies, assessments shall be calculated the life
204		-	insurance and annuities account under s. 646.11 (2), the
205		-	board shall calculate the assessments separately for life
206		-	insurance policies and for annuity contracts as a percent-
207		-	age of average annual premium premiums received in
208		-	this state by each insurer in the classes protected by the
209		-	accounts account for the 3 most recent years year imme-
210		-	diately preceding the year of the entry of the order of liq-
211		-	uidation in which the board authorizes the assessment.
212		-	If the assessment data for the year immediately preceding
213		-	the year in which the board authorizes the assessment is
214		-	not available when the assessment is called, the board
215		-	may use the assessment data for the most recent year for
216		-	which data is available.
	204	+	SECTION 14. 601.64 (3) (c) 2. a., b. and c. of the statutes are created to read:
	205	+	601.64 (3) (c) 2. a. The violation specifically involves a consumer who is an adult
	206	+	at risk, as defined in s. 55.01 (1e).
	207	+	b. The violation specifically involves an individual who is at least 60 years of
	208	+	age.
	209	+	c. The violation involves or constitutes fraud or misrepresentation.
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	235	+	KRP:emw&skw
	236	+	SECTION 15 ASSEMBLY BILL 437
	237	+	SECTION 15. 609.98 (5) of the statutes is created to read:
	238	+	609.98 (5) FAMILY CARE PROGRAM; DEPOSIT REQUIRED. (a) In this subsection,
	239	+	“family care program” means the program under ss. 46.2805 to 46.2895 that provides
	240	+	the family care benefit, as defined in s. 46.2805 (4).
	241	+	(b) A health maintenance organization participating in the family care
	242	+	program is subject to s. 648.75.
	243	+	SECTION 16. 611.12 (5) of the statutes is created to read:
	244	+	611.12 (5) FORUM SELECTION PROVISIONS. Section 180.0145 applies to stock
	245	+	corporations, and s. 181.0163 applies to mutuals.
	246	+	SECTION 17. 628.10 (2) (b) of the statutes is amended to read:
	247	+	628.10 (2) (b) For other reasons. Except as provided in pars. (c) to (d), after a
	248	+	hearing, the commissioner may revoke, suspend, or limit in whole or in part the
	249	+	license of any intermediary or individual navigator if the commissioner finds that the
	250	+	licensee is unqualified as an intermediary or navigator, is not of good character
	251	+	competent or trustworthy under s. 628.04 (1) (b) 2., or has repeatedly or knowingly
	252	+	violated an insurance statute or rule or a valid order of the commissioner under s.
	253	+	601.41 (4), or if the intermediary's or navigator's methods and practices in the
	254	+	conduct of business endanger, or financial resources are inadequate to safeguard, the
	255	+	legitimate interests of customers and the public. Nothing in this paragraph limits
	256	+	the authority of the commissioner to suspend summarily an intermediary's or
	257	+	individual navigator's license under s. 227.51 (3).
	258	+	SECTION 18. 628.92 (5) of the statutes is repealed.
	259	+	SECTION 19. 635.10 of the statutes is repealed.
	260	+	SECTION 20. 646.11 (2) of the statutes is amended to read:
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	286	+	KRP:emw&skw
	287	+	SECTION 20
	288	+	ASSEMBLY BILL 437
	289	+	646.11 (2) ACCOUNTS. The fund shall be composed of 6 5 segregated accounts,
	290	+	one for life insurance, one for and annuities, one for disability insurance other than
	291	+	policies issued or coverage provided by a health maintenance organization insurer,
	292	+	one for health maintenance organization insurers, one for all other kinds of
	293	+	insurance subject to this chapter, and an administrative account.
	294	+	SECTION 21. 646.13 (2) (h) of the statutes is created to read:
	295	+	646.13 (2) (h) Negotiate and contract with other guaranty associations to
	296	+	provide and receive administrative, claims, and other services that are usual to
	297	+	guaranty associations.
	298	+	SECTION 22. 646.51 (1m) of the statutes is amended to read:
	299	+	646.51 (1m) DUTY TO ASSESS. As soon as practicable To meet the board's
	300	+	obligations under this chapter, after a liquidation order has been issued, the board
	301	+	shall estimate separately for each of the accounts of s. 646.11 (2) and separately for
	302	+	life insurance policies and for annuity contracts in the life insurance and annuities
	303	+	account, the amounts necessary to make the payments provided by this chapter and.
	304	+	The board shall authorize assessments separately for each account and separately
	305	+	for life insurance policies and for annuity contracts in the life insurance and
	306	+	annuities account.
	307	+	SECTION 23. 646.51 (3) (am) of the statutes is amended to read:
	308	+	646.51 (3) (am) General. Except as provided in pars. (ar), (b), and (c), the board
	309	+	shall calculate the assessments shall be calculated as a percentage of premium
	310	+	premiums written in this state by each insurer in the classes protected by the
	311	+	accounts under s. 646.11 (2) for the year immediately preceding the year in which the
	312	+	board authorizes the assessment is authorized by the board.
	313	+	SECTION 24. 646.51 (3) (ar) of the statutes is amended to read:
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	339	+	KRP:emw&skw
	340	+	SECTION 24 ASSEMBLY BILL 437
	341	+	646.51 (3) (ar) Disability. Except as provided in par. (c), with respect to the
	342	+	disability insurance policies, including policies issued by account under s. 646.11 (2)
	343	+	and the health maintenance organization insurers, account under s. 646.11 (2), the
	344	+	board shall calculate the assessments shall be calculated as a percentage of premium
	345	+	premiums written in this state by each insurer in the classes protected by the
	346	+	accounts for the year immediately preceding the year in which the board authorizes
	347	+	the assessment is authorized by the board. If the assessment data for the year
	348	+	immediately preceding the year in which the board authorizes the assessment is
	349	+	authorized by the board is not available when the assessment is called, the fund
	350	+	board may use the assessment data for the most recent year for which data is
	351	+	available.
	352	+	SECTION 25. 646.51 (3) (b) of the statutes is amended to read:
	353	+	646.51 (3) (b) Life and annuities. Except as provided in par. (c), with respect
	354	+	to annuity contracts or life insurance policies, assessments shall be calculated the
	355	+	life insurance and annuities account under s. 646.11 (2), the board shall calculate the
	356	+	assessments separately for life insurance policies and for annuity contracts as a
	357	+	percentage of average annual premium premiums received in this state by each
	358	+	insurer in the classes protected by the accounts account for the 3 most recent years
	359	+	year immediately preceding the year of the entry of the order of liquidation in which
	360	+	the board authorizes the assessment. If the assessment data for the year
	361	+	immediately preceding the year in which the board authorizes the assessment is not
	362	+	available when the assessment is called, the board may use the assessment data for
	363	+	the most recent year for which data is available.
	364	+	(END)
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