Untitled section

644.02

 

Definitions.

644.02(1)

(1)

 

In this chapter, unless the context otherwise requires:

644.02(1)(a)

(a)

“Board” means the board of directors or board of trustees, as the case may be, of the converting insurance company.

644.02(1)(b)

(b)

“Converted insurance company” means an insurance company that converted under this chapter from a mutual insurance company to a stock insurance company, or from a service insurance corporation to a mutual insurance company and then to a stock insurance company, and formed a mutual holding company.

644.02(1)(c)

(c)

“Converted life insurance company” means a life insurance company that converted under this chapter from a mutual life insurance company to a stock insurance company and formed a mutual holding company.

644.02(1)(d)

(d)

“Converting insurance company” means a domestic mutual insurance company or a domestic service insurance corporation undergoing restructuring under this chapter.

644.02(1)(e)

(e)

“Dividend plan” means a

plan to provide reasonable assurances as to the policyholder dividend scales of the participating individual policies and contracts of a converted insurance company in the life insurance business in force on the date specified in the dividend plan for which the insurer had an experience-based dividend scale payable in the year of the plan by creating any of the following:

644.02(1)(e)1.

1.

Covenants of the converted insurance company or the mutual holding company, or both.

644.02(1)(e)2.

2.

One or more closed blocks. Assets of the converted insurance company shall be allocated to the closed block in an amount that produces cash flows, together with anticipated revenues from the closed block business, expected to be sufficient to support the closed block business, including provision for payment of claims and those expenses and taxes specified in the dividend plan, and provision for continuation of the dividend scales in effect on the effective date of the restructuring under this chapter if the experience underlying such dividend scales continues. Any plan under this subdivision may provide for conditions under which the converted insurance company may cease to maintain any closed block and for the allocation of assets to that closed block.

644.02(1)(e)3.

3.

A combination of subds. 1. and 2. or any other means of providing reasonable assurances that the commissioner approves.

644.02(1)(f)

(f)

“Dividend scales” means the

equitable apportionment of divisible surplus by the board.

644.02(1)(g)

(g)

“Divisible surplus” means the

annual distribution described in s.