Senate Bill 98 proposes the creation of a new statute, 613.76, which allows health care cooperatives organized under Wisconsin law to convert into service insurance corporations. The bill outlines the process for conversion, which includes adopting a plan of conversion that details the reasons for the change, proposed terms, and the new corporation's name and bylaws. The plan must be approved by the commissioner of insurance before being submitted to the cooperative's members for their approval. The commissioner is required to approve the plan unless it is found to be contrary to law, inadequate in terms of surplus or contracts, or not in the best interest of the cooperative's members or the public.

Once the conversion plan is approved by both the commissioner and the cooperative's members, the cooperative will cease to exist legally, and the new service insurance corporation will inherit all assets and liabilities of the cooperative. The bill also stipulates that the initial officers and directors of the cooperative will serve as the officers and directors of the new corporation. Additionally, it restricts the payment of compensation to existing personnel during the conversion process, allowing only regular salaries and reasonable payments for specific professional services with the commissioner's approval.