The Office of the Commissioner of Insurance (OCI) promulgated two administrative rules, which were published on December 26, 2017 with an effective date of January 1, 2018.
Chapter Ins 52, Wis. Adm. Code—Relating to credit for reinsurance
Wisconsin adopted the 2011 changes to the National Association of Insurance Commissioners (NAIC) model law and regulation related to credit for reinsurance. Specifically, Wisconsin adopted the changes that allow for reinsurers certified by the Commissioner to be eligible for reduced collateral requirements. Reinsurers domiciled in a qualified jurisdiction that also meet the requirements of s. Ins 52.02 (4m), Wis. Adm. Code, may apply to OCI for certification. Information related to certified reinsurers, including a list of qualified jurisdictions, application for certified reinsurers, reduced collateral requirements, pending certified reinsurers, and eligible certified reinsurers may be found at
oci.wi.gov/Pages/Companies/CertifiedReinsurers.aspx.
Chapters Ins 3, 6, 7, 8, 9, 16, and 50, Wis. Adm. Code—Relating to reporting requirements for new officers and directors of domestic insurers and other technical changes
OCI promulgated certain technical changes and updates to modernize outdated code provisions. The most significant changes in this rule are the following:
-
Section Ins 16.01 (7), Wis. Adm. Code, Minimum Annual Examination Assessment. The minimum annual examination assessment for domestic insurers located primarily out of state was raised from $1,000 to $10,000. The minimum assessment for all other domestic insurers was raised from $300 to $3,000.
-
Chapter Ins 50, Wis. Adm. Code, Internal Audit Functions Requirement. Effective January 1, 2018, insurers with direct written and assumed premium of $500,000,000 or greater and insurers who are a member of a group of insurers with direct and assumed premium of $1,000,000,000 or greater shall establish an internal audit function. "Internal audit function" is defined as "a person or persons who provide independent, objective, and reasonable assurance designed to add value and improve an organization's operations and accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."
Any questions concerning this bulletin should be directed to Amy Malm, Director of the Bureau of Financial Analysis and Examinations, at amy.malm@wisconsin.gov.