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WISCONSIN LEGISLATIVE AUDIT BUREAU
AUDIT SUMMARY
Report 02-18
November 2002
STATE LIFE INSURANCE FUND
The State Life Insurance Fund, which is administered by the Office of the
Commissioner of Insurance, is subject to the same regulatory requirements as any
insurance company licensed to operate in Wisconsin, as well as to other specific
statutory restrictions, such as prohibition on advertising and maximum coverage to
any insured person of $10,000. As of December 31, 2001,
the fund had 30,407 life policies in effect and total life insurance
in force of approximately $226.4 million.
We have completed an audit of the statutory-based financial statements of the State
Life Insurance Fund for the period January 1, 1999 through December 31, 2001, as
required by s. 13.94(1)(de), Wis. Stats. We found the statutory-based
financial statements to be fairly presented in accordance with insurance accounting
practices prescribed by the Commissioner of Insurance.
The Fund, which is self-funded through premiums and investment earnings, returned
between $3.7 million and $3.9 million to policyholders as
dividends in each the three years audited. Statutes require that any surplus that
accumulates be maintained at a level between 7.0 and 10.0 percent
of Fund assets. The Fund’s surplus-to-asset ration was 8.1 percent
as of December 31, 2001. However, net losses, which totaled $679,629
over the three years audited contributed to a lower ratio in each of the
years and may affect future dividend levels if the trend continues.
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