646.31 Eligible claims.

332 words·~2 min read·/wi/chapter-646/646-31

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Conditions of eligibility. A claim is not eligible for payment from the fund unless it is an unpaid claim for a loss insured under the policy or annuity, or an unpaid claim under a supplementary contract providing for a retained asset account, and all of the following conditions are met:

(a)Issued by authorized insurer. The claim arises out of an insurance policy or annuity issued by an insurer which was authorized to do business in this state either at the time the policy or annuity was issued or when the insured event occurred, and against which an order of liquidation, which is not stayed, has been entered by a court of competent jurisdiction in the insurer’s domiciliary state.

(b)Assessability of insurer.

1. The claim arises out of business not exempt from assessment under s. 646.01

(1).

2. The claim does not arise out of business against which assessments are prohibited under any federal or state law.

(c)Contact with state. The claim is a member of one of the classes of claims under sub.

(2).

(cm)Termination of coverage. Except for claims under life insurance policies, annuities or noncancelable or guaranteed renewable disability insurance policies, the claim arises within 30 days after the order of liquidation is entered or before any of the following occur:

1. The policy expires, if the expiration date is less than 30 days after the order of liquidation is entered.

2. The insured replaces or cancels the policy, if either action is taken within 30 days after the order of liquidation is entered.

(d)Exceptions. The claim is not any of the following:

1. Based solely on a judgment.

2. Made for interest on any claim.

3. Made under s. 645.63

(2).

4. Subordinated under s. 645.90 .

5. An indemnification recovered as a voidable preference under s. 645.54

(c).

6. Made by an affiliate of an insurer in liquidation.

7. A retrospective premium rate adjustment.