Section 45.02. Scope.

 

(1)  This chapter applies only to insurers which are domiciled in this state or which are domiciled in a state that is not an accredited state or which does not have in effect a law which is substantially similar to this chapter.

(2)  

(a) Except as provided by par. (b) , ss. Ins 45.03 to 45.06 apply only if, in any calendar year, the aggregate amount of gross written premium on business placed with a controlled insurer by a controlling producer is equal to or greater than 5% of the admitted assets of the controlled insurer, as reported in the controlled insurer's quarterly statement filed as of September 30 of the prior year.

(b) If both of the following are complied with, ss. Ins 45.03 to 45.06 do not apply:

1. The controlling producer:

a. Places insurance only with the controlled insurer, or only with the controlled insurer and a member of the controlled insurer's holding company system, or the controlled insurer's parent, affiliate or subsidiary and receives no compensation based upon the amount of premiums written in connection with the insurance; and

b. Accepts insurance placements only from nonaffiliated subproducers, and not directly from insureds; and

2. The controlled insurer, except for insurance business written through a residual market facility, accepts insurance business only from a controlling producer, a producer controlled by the controlled insurer, or a producer that is a subsidiary of the controlled insurer.

(3)  This chapter is in addition to any other law or rule which may apply.

History: Cr. Register, July, 1993, No. 451 , eff. 8-1-93.