Organization of town mutuals
Wis. Stat. § 612.02
in effect(1) Incorporating members. A town mutual may be organized by 100 or more adult natural persons each of whom owns an interest in a separate insurable risk in the territory described in sub. (2) (c), and each of whom agrees to insure those risks in the town mutual, at least against damage by fire.
(2) Articles of incorporation. The articles shall state:
(a) The name of the corporation;
(b) The address of the principal office, which may be designated as the residence or business office of the holder of a specified corporate office;
(c) The territory within which the corporation plans to operate which may not exceed 8 contiguous counties, except that the commissioner may authorize a broader territory aggregating no more than 16 contiguous counties;
(d) The types of insurance to be written which shall conform to s. 612.31;
(e) The number of directors and the manner of their selection and of their replacement if there are interim vacancies;
(f) The titles of the officers, their terms of office and the manner in which they are to be selected;
(g) The procedures and quorum requirements for the annual and special meetings and the voting rights of the members;
(h) The general conditions and procedures for levying assessments; and
(i) The procedures for amending the articles and for adopting and amending bylaws.
(3) Model articles. The commissioner shall promulgate model articles of incorporation which may be used by any town mutual.
(4) Application for certificate of authority. The incorporating members shall file with the commissioner an application for a certificate of authority which shall be signed by or on behalf of each incorporating member and shall include or have attached:
(a) The names and addresses of all incorporating members and, for the preceding 10 years, the names, all addresses and all occupations of all proposed directors and officers;
(b) The proposed articles which shall be signed by each incorporating member, and the proposed bylaws;
(c) The affidavit of 2 incorporating members stating that they are personally acquainted with all incorporating members and know them to be owners of property described under sub. (1) and to be the signers of the application and the articles;
(d) All agreements relating to the corporation to which any incorporating member or any proposed director or officer is a party;
(e) The amount and sources of the funds available for organization expenses and the proposed arrangements for reimbursement of incorporating members;
(f) The proposed compensation of directors and officers;
(g) The plan for conducting the insurance business including:
1. The types of insurance to be written;
2. The policy forms to be used initially;
3. The proposed methods for soliciting members;
4. The proposed methods for establishing premium rates and classifications for assessments;
5. Any proposed reinsurance arrangements; and
(i) Such other relevant documents or information as the commissioner reasonably requires.
(5) Initial surplus.
(a) Requirement. The incorporating members shall pay in or procure an initial surplus in an amount at least as large as that specified by the commissioner. The amount specified by the commissioner shall be sufficient to permit the town mutual to commence business and to protect the members in case initial losses are unexpectedly high, but may not be less than $100,000 nor more than $200,000. The surplus may be provided by gifts or by contribution notes bearing interest at a rate approved by the commissioner and repayable under par. (c).
(b) Factors determining amount of initial required surplus. In determining the amount of initial required surplus, the commissioner shall consider all factors relevant to the financial needs of the corporation, including the matters specified in sub. (4) (e) and (g), the number of incorporating members, the nature of their properties and financial position and the general economic situation.
(c) Repayment of contribution notes. No payment on principal or interest on contribution notes may be made without approval of the commissioner. The commissioner shall approve if after payment there will remain surplus in an amount sufficient for the continuing needs of the corporation and to satisfy all other requirements of the law.
(6) Certificate of authority. The commissioner shall issue a certificate of authority if he or she:
(a) Finds that all requirements of law have been met;
(b) Is satisfied that the proposed directors and officers are trustworthy and individually competent for the tasks assigned them and that collectively they have the competence and experience to administer the affairs of the proposed town mutual;
(c) Is satisfied that the total amount initially at risk and its distribution permit a sound insurance operation; and
(d) Is satisfied that the business plan is consistent with the interests of the members and of the public.
(7) Contents of certificate. The certificate of authority shall specify the territories and types of insurance authorized and the surplus required under sub. (5).
(8) Effect of certificate. Upon issuance of the certificate of authority, the town mutual shall have legal existence.
Source: WI Statutes (Official Site)URL: https://docs.legis.wisconsin.gov/document/statutes/612.02Fetched: 10/7/2026