1. (1) Purpose. This rule implements and interprets ss. 601.42, 601.72, 601.73, 618.41 and 618.43, Stats., for the purpose of facilitating the regulation of surplus lines insurance business in this state.

2. (2) Prohibited placement. No licensed surplus lines agent may place contracts of insurance with any unauthorized insurer:

   1. (a) For the classes of insurance specified by s. Ins 6.75 (2) (h), (i) and (k), and
   2. (b) For any kind of insurance not specifically authorized by any of the other paragraphs of s. Ins 6.75.

3. (3) Responsibilities of surplus lines agent. Every licensed surplus lines agent who procures surplus lines insurance shall:

   1. (a) Forward promptly to the policyholder a completed copy of a Surplus Lines Insurance Proposal in a form substantially as in Appendix 1 to this rule.
   2. (b) When applicable, forward promptly to the policyholder a notice that the unauthorized insurer with which the insurance is to be placed is not on the list of unauthorized nondomestic insurers which the commissioner believes to be reliable and solid, along with notice of any other deficiencies of the insurer of which the agent has knowledge.

   3. (c) Keep in his or her office in this state a full and true record of each surplus lines insurance contract procured by him or her, evidenced by a copy of the daily report or other documents to show at least the following information:

      1. 1. Amount of the insurance and perils insured against;
      2. 2. Brief general description of property insured and where located;
      3. 3. Gross premium charged;
      4. 4. Return premium paid, if any;
      5. 5. Rate of premium charged upon the several items of property;
      6. 6. Effective date of the contract, and the terms thereof;
      7. 7. Name and post-office address of the insured;
      8. 8. Name and home office address of the insurer;
      9. 9. Amount collected from the insured; and
      10. 10. A copy of the notice required by par. (b).
   4. (d) The record required by par. (d) shall be open at all times to examination by the commissioner without notice, and shall be so kept available and open to the commissioner for 3 years (5 years for notice required by par. (b)) next following the expiration or cancellation of the contract.
4. (4) Advertising by surplus lines agent. A surplus lines agent may advertise the availability of services in procuring, on behalf of persons seeking insurance, contracts with insurers not holding a certificate of authority in Wisconsin, but such advertisements shall not refer to any particular unauthorized insurer or insurers.
5. (5) Report and payment of tax-surplus lines insurance. All premium tax collected by the surplus lines agent shall be reported and forwarded to the commissioner on or before March 1, for all insurance procured, renewed or continued during the preceding calendar year with unauthorized insurers. The report and the premium taxes owed shall be submitted through an electronic filing system, a link to which may be found on the office’s website.

6. (6) Penalty. Any violation of this rule shall subject the agent to immediate revocation of the agent’s surplus lines license and to other forfeitures and penalties provided by s. 601.64, Stats.

   Ins 6.17 Appendix 1

   SURPLUS LINES INSURANCE PROPOSAL

   Name and address of applicant Date

   Dear:   Proposal No.

   You have asked that I procure the following insurance coverage on your behalf:

   Type of Insurance   Limits of Coverage

   I can procure the coverage desired from the following insurer(s) at the premium listed:

   Insurer(s) — Name and Address % of Total Risk
   Premium Quoted

   This insurance is with an insurer which has not obtained a certificate of authority to transact a regular insurance business in the state of Wisconsin, and will be issued and delivered as a surplus lines coverage pursuant to s. 618.41, Stats. The insurance is regulated by the Commissioner of Insurance only as provided in ss. 618.41 and 618.43, Stats. Section 618.43 (1), Stats., requires payment by the policyholder of a 3% tax on gross premium (except for Ocean Marine Insurance on which the tax is one-half of 1%). The tax in this instance amounts to $ . If the above transaction is not satisfactory, please advise immediately.

   Sincerely yours,

   ______________________________________________
   Name and address of licensed surplus lines agent

   Note: 2011 Wisconsin Act 224 changed the tax rate for surplus lines insurance which is ocean marine insurance to the same 3% rate for all other surplus lines insurance. Any previous reference to a ½ of 1% rate for ocean marine insurance in this rule is not enforceable as that insurance is now taxed at the same 3% rate for all surplus lines insurance.

History

History: Cr. Register, December, 1973, No. 216, eff. 1-1-74; am. (1), Register, May, 1975, No. 233, eff. 6-1-75; emerg. am. (2) (a) and (b), eff. 6-22-76; am. (2) (a) and (b), Register, September, 1976, No. 249, eff. 10-1-76; am. (2) (a) and (b), Register, March, 1979, No. 279, eff. 4-1-79; r. (3) (c), renum. (3) (d) and (e) to be (3) (c) and (d), am. (4), (6) and appendix 1, Register, August, 1982, No. 320, eff. 9-1-82; corrections in (3) (c) (intro.) made under s. 13.93 (2m) (b) 5., Stats., Register, April, 1992, No. 436, eff. 5-1-92; CR 22-076: am. (5), r. appendix 2 Register July 2023 No. 811, eff. 8-1-23.