Section 6.25. Joint underwriting and joint reinsurance associations.

 

(1)   Purpose. This section, pursuant to s. 625.04 , Stats., is intended to encourage an active, economical and efficient insurance market; to provide for the regulation of marketing practices; and to exempt certain insurers and organizations from the provisions of s. 625.33 , Stats., with respect to joint underwriting or joint reinsurance.

(2)   Scope. Subsection (3) applies to joint underwriting and joint reinsurance involving the insurance of risks associated with:

(a) Nuclear energy.

(b) Commercial aircraft.

(c) Aircraft products liability.

(d) Crude oil production and processing.

(e) Municipal bonds.

(f) Commercial property policies insuring property damage, business interruption, extra expense, rents and other time element coverages, for any policy whose total property damage limit is an amount not less than $50,000,000.

(g) Excess and umbrella liability with limits in excess of $25 million to risks with underlying coverage or self-insured for a minimum of $25 million.

(3)   Persons exempted. If any of the following joint underwriting associations and joint reinsurance associations is licensed as a rate service organization under s. 625.32 , Stats., each insurer-member thereof shall be exempted from the provisions of s. 625.33 , Stats., with respect to agreements between or among insurer-members to adhere to certain rates and rules in providing insurance or reinsurance as members of such association:
 

(a) Aircraft products insurance association
  (b) Industrial risk insurers
  (c) Mutual atomic energy liability underwriters
  (d) Mutual atomic energy reinsurance pool
  (e) American nuclear insurers
  (f) Nuclear energy property insurance association
  (g) Municipal bond insurance association
  (h) American excess insurance association.

(4)   Limitation on membership disciplinary action. No person may impose any penalty or other adverse consequence for failure of any insurer to adhere to the rates or rules of any joint underwriting association or joint reinsurance association of which the insurer is a member, except termination of or expulsion of the insurer from membership in the association.

(5)   Penalty. Violations of this section shall be subject to s. 601.64 , Stats.

History: Cr. Register, September, 1973, No. 213 , eff. 10-1-73; am. (2) and (3), Register, August, 1974, No. 224 , eff. 9-1-74; am. (3) (e), Register, May, 1975, No. 233 , eff. 6-1-75; am. (3), Register, February, 1976, No. 242 , eff. 3-1-76; am. (3) (e), Register, November, 1978, No. 275 , eff. 12-1-78; cr. (2) (f), Register, January, 1983, No. 325 , eff. 2-1-83; emerg. cr. (2) (g) and (3) (h), eff. 12-12-86; am. (1), (2) (intro.) to (e), (4) and (5), cr. (2) (g) and (3) (h), Register, May, 1987, No. 377 , eff. 6-1-87.