Wisconsin Statutes 611.61 – Transactions of insurers with affiliates
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Wisconsin Statutes 611.61
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- State: when applied to states of the United States, includes the District of Columbia, the commonwealth of Puerto Rico and the several territories organized by Congress. See Wisconsin Statutes 990.01
(1) Restricted transactions. No transaction may be entered into between an insurer authorized to do business in this state and any affiliate unless:
(a) The transaction at the time it is entered into is reasonable and fair to the interests of the insurer;
(b) The books, accounts and records of each party to the transaction are kept in a manner that clearly and accurately discloses the nature and details of the transaction and in accordance with generally accepted accounting principles permits ascertainment of charges relating to the transaction; and
(c) If the transaction is a reinsurance transaction, it is reported to the commissioner immediately if the insurer is a domestic corporation.
(2) Voidability. Transactions entered into by domestic corporations in violation of sub. (1) are voidable by the corporation.