State Codes and Statutes

Statutes > Wisconsin > 611 > 611.61

611.61

611.61 Transactions of insurers with affiliates.

611.61(1)

(1) Restricted transactions. No transaction may be entered into between an insurer authorized to do business in this state and any affiliate unless:

611.61(1)(a)

(a) The transaction at the time it is entered into is reasonable and fair to the interests of the insurer;

611.61(1)(b)

(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

611.61(1)(c)

(c) If the transaction is a reinsurance transaction, it is reported to the commissioner immediately if the insurer is a domestic corporation.

611.61(2)

(2) Voidability. Transactions entered into by domestic corporations in violation of sub. (1) are voidable by the corporation.

611.61 - ANNOT.

History: 1971 c. 260; 1979 c. 102.