Section 611.61. Transactions of insurers with affiliates.

 

(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.

1971 c. 260 ; 1979 c. 102 .