Various miscellaneous changes to the insurance statutes and granting rule-making authority

2) the standard valuation law has been enacted by states representing more than 75 percent of the direct premiums written as reported in the 2008 annual statements for certain types of insurance; and 3) the standard valuation law has been enacted by at least 42 of 55 specified jurisdictions. "Principle-based valuation" is defined in the bill as a reserve valuation that uses one or more methods, or one or more assumptions, determined by the insurer and that is required to comply with detailed specifications and processes outlined in the bill. The bill also describes the documents, materials, and other information related to the requirements for principle-based valuation that are designated as confidential and specifies the confidentiality requirements that apply with respect to those documents, materials, and other information.

2. Under current law, health care providers that are subject to the health care liability provisions of the statutes pay assessments for the injured patients and families compensation fund, which pays any portion of a medical malpractice claim that exceeds the policy limits of the health care liability insurance carried by those health care providers. The assessments are set by the commissioner of insurance (commissioner) by rule, after approval by a supervisory board of governors (board).

Also under current law, health care providers that are subject to the health care liability provisions of the statutes pay assessments for the mediation fund, which pays the costs of the system for mediating medical malpractice claims against health care providers subject to the health care liability provisions. The assessments are set by the board by rule.

Under the bill, the assessments paid by health care providers for the injured patients and families compensation fund continue to be set by the commissioner after approval by the board within the same parameters as under current law, but the assessments do not have to be set by rule; the assessments paid by health care providers for the mediation fund continue to be set by the board, but the assessments do not have to be set by rule; and, upon the request of the commissioner, the Joint Committee on Finance may modify the assessments.

3. Current law authorizes the commissioner to waive an examination requirement for a nonresident applicant for an intermediary's license if the jurisdiction of the applicant's residence has applicant requirements that are substantially as rigorous as those in this state. The bill requires the commissioner to waive an examination requirement for a nonresident applicant if the applicant's home state has issued the applicant an intermediary's license for which the qualifications are equivalent to those in this state and the license is in good standing.

4. The bill expands the ways in which the commissioner may notify an intermediary or navigator of the dates by which certain actions must be taken before the intermediary's or navigator's license is revoked for nonpayment of fees or failure to comply with education or training requirements by requiring notification generally. Current law requires the commissioner to send the notice by first class mail to the address on file.

5. The bill removes requirements for insurers to file a number of reports with the Office of the Commissioner of Insurance (OCI), including a report with information about the percentages and kinds of commissions and fixed salaries paid to agents and brokers in this state, an annual report related to premiums and claims for commercial liability insurance, an annual report related to premiums and claims for product liability insurance, and an annual report related to the number of rescissions initiated or completed with respect to individual health insurance policies.

6. Current law requires a small employer insurer to maintain detailed records relating to its rating and renewal underwriting methods and practices and to make them available to the commissioner, as well as filing an annual actuarial opinion, based on an examination of those records, certifying that the insurer's methods and practices are in compliance with state law and based on generally accepted and sound actuarial principles. The bill removes the requirement for the annual actuarial opinion.

7. The bill designates information to or from the International Association of Insurance Supervisors and its employees or agents as information that OCI may refuse to disclose.

8. The bill shortens the period for paying premiums for coverage under the local government property insurance fund from 60 days to 30 days after the effective date of coverage.

9. The bill authorizes an insurance stock corporation to take action that is required or permitted to be taken at a meeting by the written consent of board members instead of at a meeting.

10. The bill gives the board of directors of an insurer doing a participating life insurance business, in which life insurance policy holders participate in company profits by receiving dividends, more discretion to determine its surplus and the dividend to be distributed to its participating policy holders.

11. The bill subjects insurers that surrender their license or certificate of authority to assessments authorized by the board of directors of the insurance security fund and adjusts the formula for calculating assessments levied against an insurer. Under current law, the board of directors of the insurance security fund authorize assessments of insurers that have been ordered liquidated. Assessments authorized prior to April 30, 2004, are calculated as a percentage of premiums written in Wisconsin during the year preceding the year of entry of the order of liquidation. Assessments authorized after April 30, 2004, are calculated as a percentage of premiums written in Wisconsin during the year preceding the year in which the assessment is authorized. Under the bill, assessments are calculated as a percentage of premiums written in Wisconsin in the year preceding the year in which the board authorizes the assessment. Current law also specifies that assessments with respect to insurers providing annuities contracts and life and health insurance policies are calculated as the average annual premiums received in Wisconsin over the three years preceding the year of entry of the order of liquidation. Under the bill, for insurers providing health insurance policies, assessments authorized prior to the passage of the bill use the same formula;

assessments authorized after passage of the bill are calculated as a percentage of the premiums written in Wisconsin by the insurer for the year preceding the year in which the board authorized the assessment.

12. The bill exempts care management organizations that administer the family care benefit and that offer only mental health or alcohol and other drug abuse treatment services from the application of the insurance statutes. Current law exempts care management organizations that administer family care from the application of the insurance statutes unless the care management organization also offers hospital, physician, or other acute care services.

13. The bill makes various changes to the laws governing town mutuals, including allowing an entire board to serve as the adjustment committee to adjust or supervise the adjustment of losses if no adjustment committee is appointed;

allowing a town mutual to insure real property and contents in an immediately adjoining county owned by a member who has real property and contents insured by that town mutual, and allowing a town mutual to provide coverage for livestock and farm products while temporarily located outside the town mutual's territory.

14. The bill specifies certain rights that are preserved under a qualified financial contract with an insurer that is subject to a rehabilitation or liquidation proceeding. The bill specifies rights and obligations with respect to a party to a netting agreement or a qualified financial contract with an insurer that is subject to a rehabilitation or liquidation, including requirements on the receiver in the proceeding.