612.01 Purposes, scope, interpretation and definitions. (1) Purposes. The purposes of this chapter are: (a) To preserve and encourage cooperative low-cost insurance; (b) To establish a framework in which mutuality in its true sense can be preserved, and small mutual corporations can be kept viable; (c) To preserve and strengthen the interest of the members […]
612.02 Organization of town mutuals. (1) Incorporating members. A town mutual may be organized by 100 or more adult natural persons each of whom owns an interest in a separate insurable risk in the territory described in sub. (2) (c), and each of whom agrees to insure those risks in the town mutual, at least […]
612.03 General powers and effect of unauthorized corporate acts. Sections 181.0302 (intro.), (1) to (8), (11) to (13), (18) and (19) and 181.0304 apply to town mutuals, except that references to “attorney general” shall be read as “commissioner”. Section 181.0302 (7) is subject to s. 612.35. History: 1973 c. 22; 1979 c. 110; 1983 a. […]
612.04 Amendments of articles, bylaws and business plan. (1) Right to amend articles and make and amend bylaws. Sections 181.0207 and 181.1001 apply to town mutuals. A town mutual may make and amend bylaws as provided by the articles or, in the absence of any such provision, in the same manner as the articles may […]
612.10 Membership. (1) Creation and duration of membership. Each policyholder is a member of the town mutual and has all the rights and duties of a member during the time his or her policy is in effect. The articles or bylaws may establish rules determining which of multiple policyholders on the same policy shall exercise […]
612.11 Meetings of members. (1) Place of meetings. All meetings of members shall be held within the territorial limits of the town mutual, except under s. 612.21 (4). (2) Notice of meeting. (a) Annual meeting. Notice of the time and place of the annual meeting shall be given to each member by printing it conspicuously […]
612.12 Voting rights of members. (1) Matters subject to vote. Members of town mutuals shall have the right to vote on the following matters: (a) Election of directors; (b) Amendment of articles; (c) Merger, transfer of business under s. 612.24, conversion and voluntary dissolution; (d) Any decision by the town mutual to transact insurance for […]
612.13 Directors and officers. (1) Number and classification. Town mutuals shall have at least 5 directors divided into 3 classes as nearly equal in size as possible. (1m) Inside directors. (a) Beginning 2 years after April 30, 2004, all of the following apply: 1. If a town mutual has fewer than 9 directors, no more […]
612.14 Reports. An officer or person designated by an officer of the company shall present to the annual meeting written reports showing the condition of the town mutual on the previous December 31 and its activity during the preceding calendar year, including any information required to be presented by the articles or bylaws or by […]
612.15 Supervision of management changes. (1) Elections. (a) Report. The name and residence of each person selected as a director or officer of a town mutual, and such pertinent biographical data and financial information as the commissioner may reasonably require by rule, shall be reported to the commissioner immediately after the selection. (b) Disapproval. The […]
612.16 Exclusive agency and management contracts. Sections 611.66 and 611.67 apply to town mutuals. History: 1973 c. 22.
612.18 Transactions with affiliates and in which directors and others are interested. Sections 611.60 and 611.61 apply to town mutuals. History: 1973 c. 22; 1979 c. 102.
612.21 Merger of town mutuals. (1) Conditions for merger. Two or more town mutuals authorized to operate in all or part of the same or in contiguous territories not exceeding 16 counties altogether may merge into one of the constituent town mutuals, or into a new town mutual, under the procedure provided in this section. […]
612.22 Merger of town mutuals and mutual insurance corporations. (1) Conditions for merger. One or more town mutuals may merge with a single domestic mutual under ch. 611. If the domestic mutual is nonassessable, the surviving corporation shall be a mutual under ch. 611. If the domestic mutual is assessable, the surviving corporation may be […]
612.23 Conversion of town mutuals into mutual insurance corporations. One or more town mutuals may be converted into a single mutual insurance corporation under ch. 611, as follows: (1) Conversion plan. The board of each participating town mutual shall adopt the same plan of conversion by resolution stating: (a) The reasons for and the purposes […]
612.24 Transfer of business. (1) Approval by members. No action by which a town mutual proposes to transfer to another person or to reinsure any part of its insurance business, other than in the normal and usual course of business, or to sell, lease, exchange, mortgage, pledge or otherwise dispose of all or substantially all […]
612.25 Voluntary dissolution of town mutuals. A town mutual may be dissolved in the following way: (1) Plan for dissolution. The board shall adopt a plan for dissolution stating: (a) The reasons for the proposed action; (b) The proposed terms, conditions and procedures for and estimated expenses of implementing the dissolution; and (c) The financial […]
612.31 Authorized business. (1) Property insurance. (a) General. Subject to other provisions of this section, a town mutual may insure a member against loss or damage from any cause to any property in which the member has an interest. (b) Extensions. 1. Insurance authorized under par. (a) may include insurance against loss of use of […]
612.32 Territory. No town mutual may insure any risks located outside the territory authorized in its articles, except: (1) Real property outside territory. Town mutuals may insure real property and contents in villages and cities partially located in the specified territory, real property and contents in an immediately adjoining county owned by a member who […]
612.33 Reinsurance. (1) Permitted and prohibited reinsurance. A town mutual may cede reinsurance only to an insurer authorized to do business in this state under ch. 611 or 618, or under arrangements which are approved in advance by the commissioner and which are subject to the controls the commissioner prescribes. (2) Required reinsurance. (a) Windstorm […]
