Assembly Bill 107 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, obtaining approval from the commissioner of insurance, and securing agreement from the cooperative's members. The commissioner must approve the conversion plan unless it is found to be contrary to law, inadequate in terms of surplus or contracts, or not in the best interests of the cooperative's members or the public. Once approved, the cooperative will cease to exist, and the new service insurance corporation will inherit all assets and liabilities of the cooperative.

Additionally, the bill stipulates that the officers and directors of the converting cooperative will serve as the initial officers and directors of the new service insurance corporation. It also includes provisions regarding the amendment or abandonment of the conversion plan, the filing of articles of conversion, and the issuance of a certificate of authority by the commissioner, which marks the official start of the new corporation's existence. Importantly, the bill restricts the payment of compensation to existing personnel during the conversion process, allowing only regular salaries and certain approved expenses for professional services.