Section Ins 52.21 - Exemptions This subchapter does not apply to the situations described below:
(1) Reinsurance of: (a) Policies that satisfy the criteria for exemption set forth in s. Ins 2.80(5) (k) or (L) that were issued prior to June 1, 2022.(b) Portions of policies that satisfy the criteria for exemption set forth in s. Ins 2.80(5) (j), that were issued prior to June 1, 2022.(c) Any universal life policy that meets the following requirements:1. Secondary guarantee period, if any, is 5 years or less.2. Specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the commissioners standard ordinary valuation tables and valuation interest rate applicable to the issue year of the policy; and3. The initial surrender charge is not less than 100% of the first year annualized specified premium for the secondary guarantee period.(d) Credit life insurance.(e) Any variable life insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts.(f) Any group life insurance certificate unless the certificate provides for a stated or implied schedule of maximum gross premiums required in order to continue coverage in force for a period in excess of one year.(2) Reinsurance ceded to an assuming insurer that meets the applicable requirements of s. Ins 52.02(4);(3) Reinsurance ceded to an assuming insurer that meets the applicable requirements of s. Ins 52.02(1), (2), or (3), and that in addition: (a) Prepares statutory financial statements in compliance with the national association of insurance commissioners accounting practices and procedures manual, without any departures from national association of insurance commissioners statutory accounting practices and procedures pertaining to the admissibility or valuation of assets or liabilities that increase the assuming insurer's reported surplus and are material enough that they need to be disclosed in the financial statement of the assuming insurer pursuant to statement of statutory accounting principles no. 1; and(b) Is not in a company action level event, regulatory action level event, authorized control level event, or mandatory control level event as those terms are defined in s. Ins 51.01, when its risk-based capital is calculated in accordance with the life risk-based capital report including overview and instructions for companies, as the same may be amended by the national association of insurance commissioners from time to time, without deviation; or(4) Reinsurance ceded to an assuming insurer that meets the applicable requirements of s. Ins 52.02(1), (2), or (3), and that in addition, the following:(a) Is not an affiliate, as that term is defined in s. Ins 40.01(2), of the insurer ceding the business to the assuming insurer; or any insurer that directly or indirectly ceded the business to that ceding insurer;(b) Prepares statutory financial statements in compliance with the national association of insurance commissioners accounting practices and procedures manual;(c) Is both licensed or accredited in at least 10 states, including its state of domicile, and is not licensed in any state as a captive, special purpose vehicle, special purpose financial captive, special purpose life reinsurance company, limited purpose subsidiary, or any other similar licensing regime; and(d) Is not, or would not be, below 500% of the authorized control level risk based capital as that term is defined in s. Ins 51.01(3), when calculated in accordance with the life risk based capital report including overview and instructions for companies, as the same may be amended by the national association of insurance commissioners from time to time, without deviation, and without recognition of any departures from national association of insurance commissioners statutory accounting practices and procedures pertaining to the admission or valuation of assets or liabilities that increase the assuming insurer's reported surplus; or(5) Reinsurance ceded to an assuming insurer that:(a) Meets the requirements of s. Ins 52.02(4m) or (4r); or(b) Maintains at least $250,000,000 in capital and surplus when determined in accordance with the national association of insurance commissioners accounting practices and procedures manual, including all amendments thereto adopted by the national association of insurance commissioners, excluding the impact of any permitted or prescribed practices; and is1. Licensed in at least 26 states; or2. Licensed in at least 10 states, and licensed or accredited in a total of at least 35 states.(6) Reinsurance not otherwise exempt under subs. (1) to (5), if the commissioner, after consulting with the national association of insurance commissioners financial analysis working group or other group of regulators designated by the national association of insurance commissioners, as applicable, determines under all the facts and circumstances that all of the following apply: (a) The risks are clearly outside of the intent and purpose of this regulation as provided in s. Ins 52.20(1),(b) The risks are included within the scope of this regulation only as a technicality; and,(c) The application of this regulation to those risks is not necessary to provide appropriate protection to policyholders.(d) The commissioner shall publicly disclose any decision made pursuant to this subsection to exempt a reinsurance treaty from this regulation, as well as the general basis therefor and including a summary description of the treaty.Wis. Admin. Code Office of the Commissioner of Insurance Ins 52.21
Adopted by, CR 21-066: cr. Register May 2022 No. 797, eff. 6-1-22; correction in (1) (c) 1., (4) (a), (b) made under s. 35.17, Stats., Register May 2022 No. 797, eff. 6/1/2022