Assembly Bill 699 proposes significant changes to the insurance security fund in Wisconsin by establishing a new segregated account specifically for long-term care insurance. The bill mandates that the board of directors of the insurance security fund calculate assessments for this new account based on the percentage of premiums written by life and disability insurers. If an insurer's life insurance and annuity premiums exceed 50% of their total premiums, they will be classified as a life insurer; if their disability insurance premiums exceed 50%, they will be classified as a disability insurer. The total assessment for the long-term care insurance account will be split evenly between life and disability insurers, with each insurer's assessment based on their share of total premiums written in the state.

Additionally, the bill introduces a tax credit for insurers who pay long-term care insurance assessments, allowing them to claim 20% of the assessment against state income and franchise taxes for the year following the payment and for the next four years. This credit is refundable for disability insurers but nonrefundable for others. The bill also amends various sections of the statutes to incorporate these changes, including the addition of new definitions and provisions related to the long-term care insurance assessment credit. Overall, the bill aims to enhance the financial stability of long-term care insurance in Wisconsin while providing tax relief to insurers.

Statutes affected:
Bill Text: 71.21(6)(d)3, 71.21, 71.365(4m)(d)2, 71.365