United States: 2015 Wisconsin Act 90 Changes Numerous Insurance Provisions

On November 11, 2015, Governor Scott Walker signed Senate Bill 287 into law as 2015 Wisconsin Act 90. The law is a collection of miscellaneous changes and updates to Wisconsin's Insurance Code, including technical corrections and updates driven by changes to the National Association of Insurance Commissioners (NAIC) Model Laws.

Among other changes, Act 90 does the following:

Implements Principles-Based Reserving

Act 90 adopted a number of changes to Wisconsin's standard valuation law (Wis. Stat. § 623.06) in order to conform Wisconsin's standard valuation law with the NAIC's current Model Standard Valuation Law. This change makes Wisconsin the 39th state to adopt the NAIC's changes to the standard valuation law intended to implement principles-based reserving for life insurance companies.

Once 42 states — a supermajority representing at least 75 percent of the total U.S. life insurance premiums — adopt these revisions, principles-based reserving will be gradually implemented (over three years) for new business written by life insurers. The NAIC's Principle-Based Reserving Implementation (EX) Task Force continues to discuss the exact terms of implementation for PBR and for the new Valuation Manual, including determination of when 42 states have adopted the Model Standard Valuation Law or law with "substantially similar terms and provisions."

Changes Treatment of Qualified Financial Contracts (QFCs) in Receivership

Section 67 of Act 90 created a new Section 645.675 of the Wisconsin Statutes which adopts Section 711 of the NAIC Insurer Receivership Model Act. This provision standardizes the treatment of QFCs (such as commodity contracts, forward contracts, repurchase agreements, and swap agreements) that are used by some insurers to manage and hedge against interest rate and exchange rate changes that would otherwise potentially harm the insurer's ability to meet its obligations to policyholders and beneficiaries. Section 645.675 provides for QFCs to be treated the same in insurance insolvency proceedings as they are treated under federal bankruptcy laws and other federal and foreign laws, which set out standards for the closing and netting of QFCs in bankruptcy (and other insolvency proceedings). While Wisconsin domestic insurers previously faced difficulties entering into QFCs, including unfavorable pricing or terms, as compared to their competitors in other states that have already adopted Section 711, the adoption of Section 711 in Wisconsin will facilitate domestic insurers' access to QFCs on competitive terms and simplify any future insolvency proceedings in which QFCs are at issue.

Allows the Office of the Commissioner of Insurance (OCI) to Share Information With International Regulatory Organizations

Sections 6 and 44 of Act 90 allow the Commissioner to share information regarding internationally active insurance entities subject to OCI oversight with international insurance regulators and certain supervisory colleges.

Specifically, Section 6 of Act 90 adds the International Association of Insurance Supervisors (IAIS), and its employees, to the list of entities with which the Commissioner may communicate while still preventing public disclosure of such communications. Under Section 601.465(1m), OCI may now "refuse to disclose" any "[t]estimony, reports, records, communications, and information" sent to or received from IAIS under a "pledge of confidentiality or for the purpose of assisting or participating in monitoring activities."

In addition, Section 44 of Act 90 allows the Commissioner to "share confidential information" with "international regulatory agencies" so long as the communication of confidential information is "in furtherance of the performance of the commissioner's regulatory duties."

Automatically Allows Licensing for Agents That Have Met Requirements in Similar States

Section 46 of Act 90 makes it easier for nonresident applicants to obtain insurance agent licenses in Wisconsin. Prior to Act 90, Section 628.07 allowed the Commissioner to waive the examination requirement for a nonresident applicant so long as the "the jurisdiction of the applicant's residence has imposed upon the applicant requirements substantially as rigorous as those of [Wisconsin] and has enforced them with comparable rigor." Now, the Commissioner must waive "any examination requirement" if "the applicant's home state or state of residence has issued the applicant a license for which the qualifications are equivalent to the qualifications for a license issued by [Wisconsin] and if that license is in good standing at the time of application."

This amendment reflects the licensing reforms initiated by the passage of the National Association of Registered Agents and Brokers Reform Act of 2015 (NARAB II). NARAB II establishes a central registry that allows an insurance producer licensed in their home state to perform similar functions in every other state, so long as they pay their home state's licensing fee. NARAB II promises to substantially simplify the licensing and compliance landscape for producers who sell in multiple states, and the changes made to Section 628.07 indicate that Wisconsin is open for business for producers licensed in multiple states.

Reduces Various Reporting Requirements

Act 90 repeals Sections 628.81, 601.422, 601.425, and 601.428 of the Wisconsin Statutes. Those sections required agent commission rate reports, commercial liability insurance reports, product liability insurance reports, and cancellation and rescission reports, respectively, for insurers that issue individual health insurance policies. Covered entities are no longer required to make these reports.

Act 90 also amends Section 611.63(4) of the Wisconsin Statutes to limit the type of executive compensation reports required. Prior to the amendment, the compensation to "each director and each officer and employee whose remuneration" exceeded an "amount established by the commissioner" had to be "included in the annual report made to the commissioner." Now, the report need not include "employees," but only "each director and each officer and member of executive management, as defined by the commissioner." This means domestic insurers' compensation reports will be much shorter in the future, because the compensation of employees not defined as "executive management" will no longer be subject to disclosure.

Modernizes the Powers of Stock Company Board Committees

Sections 10 and 11 of Act 90 make technical corrections to Sections 611.07(4) and 611.56(5), respectively, that modernize governance procedures for Wisconsin domestic insurers. The changes to Section 611.07 permit committees of the board of directors of Wisconsin domestic stock insurers to take action without a meeting pursuant to Section 180.0821 (e.g., by written consent). Similar changes permitting committees of the board of directors of Wisconsin domestic mutual insurers to act without a meeting were adopted in 1997, in conjunction with the repeal and recreation of Chapter 181. The changes to Section 611.56: (i) conform that section to the revised Section 611.07, and (ii) permit committees of the board of directors of Wisconsin domestic stock and mutual insurers to conduct official committee meetings by telephone or other electronic communication pursuant to Sections 180.0820 and 181.0821, respectively.

Changes the Rate Determination Process for the Injured Patients and Families Fund

Sections 76 through 84 of Act 90 amend Section 655.27 of the Insurance Code to allow the Commissioner to control the determination of annual assessments paid to the Injured Patients and Families Fund. Prior to Act 90, Section 655.27 required that these fees be set by rule.

Sections 85 through 87 of Act 90 create similar changes with regard to Wisconsin's mediation fund. For example, the Board of Governors of the Injured Patients and Families Compensation Fund may now "set fees to charge health care providers" directly. Prior to Act 90, such changes could only be made by rule.

In both cases, the changes permit OCI and the Injured Patients and Families Compensation Fund Board of Governors to set fees and assessments on a timely basis without going through the emergency rulemaking process.

Updates Security Fund Assessment Requirements for Insurers That Change Their License

Section 75 of Act 90 creates a new provision, Wis. Stat. 646.51(10), that specifies how insurers that convert to a different type of entity or license should calculate their assessment fee for the Wisconsin Security Fund. Section 646.51(10) has two sub-sections.

Sub-section (a) creates specific rules for "assessments authorized prior to or during the year of conversion," and states that an insurer is liable for "assessments to cover the obligations of the account or accounts to which it was subject prior to conversion." Sub-section (b) states the rule for "assessments authorized after the year of conversion," and states that an insurer is liable for "assessments to cover the obligations of the account or accounts to which it is subject after conversion."

Changes Town Mutual Regulation

Sections 12 through 28 of Act 90 alter various powers and procedures for town mutuals. These include removing town mutuals' ability to assume reinsurance under Section 612.31, and significantly reducing the procedural and content requirements for annual reports under Section 612.14. Town mutuals should also note the simplification of requirements to appoint adjustment committees under Section 612.13(4) and the reduced power of town secretaries to "administer oaths" and "take acknowledgments necessary to adjust claims against" town mutuals under Section 612.53.

However, some changes regarding town mutuals are less significant. For example, town mutuals are no longer required to include the words "town mutual" as part of their corporate name under Section 612.02. Likewise, Act 90 amends certain provisions regulating the time periods that different types of farm property may be removed from a town mutual's specific area under Section 612.32.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.