Section 51.40. Mandatory control level.

  If there is a mandatory control level event:

(1)  With respect to a life or health insurer, the commissioner shall take such actions as are necessary to place the insurer under regulatory control under ch. 645 , Stats. The mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under ch. 645 , Stats. , and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in ch. 645 , Stats. Notwithstanding any of the foregoing, the commissioner may forego action for up to ninety days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90 day period.

(2)  With respect to a property and casualty insurer, the commissioner shall take such actions as are necessary to place the insurer under regulatory control under ch. 645 , Stats. , or, in the case of an insurer which is writing no business and which is running-off its existing business, may allow the insurer to continue its run-off under the supervision of the commissioner. In either event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under ch. 645 , Stats. , and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in ch. 645 , Stats. Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90 day period.

History: Cr. Register, December, 1996, No. 492 , eff. 1-1-97.