Public-domain · open source
OpenJurist

Wis. Stat. § 611.61

Transactions of insurers with affiliates

1971 c. 260; 1979 c. 102.

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

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

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

(2) VOIDABILITY. Transactions entered into by domestic corporations in violation of sub.

(1) are voidable by the corporation.

Official source: Wisconsin State Legislature. Reproduced from public-domain Wisconsin statutes; confirm against the official source for the current text. Not legal advice.