The rule sets forth standards for funeral policies, including the type of policy which may be marketed for this purpose, the policy's death benefit value over time, the relationship between the policy's death benefit and premium costs, and the relationship between the costs of the policy and the costs of the prearranged funeral plan. A funeral policy is required to provide the following: a grace period; the payment of death benefits as specified; and a free-look period. An insurer may not require cancellation of a life insurance policy based on cancellation of the prearranged funeral plan.
Minimum Benefit Standards
The rule establishes minimum benefits standards for funeral policies which apply to death benefits in relation to premium payments and requires that death benefits equal or exceed cumulative premiums at a 3 percent interest rate compounded annually over ten years. The subsection excludes limited payment whole life insurance policies from this requirement.
Commissions
Under the rule, the Commissioner may review and disapprove consideration arrangements and a standard is established for insurers to use in structuring consideration arrangements.
Claim Payments
The rule sets forth minimum standards for claims payments under a funeral policy. This section prohibits payment of death benefits to a funeral director or funeral establishment unless the prearranged plan is in effect and prohibits the insurer from paying more than the actual costs of the burial expenses to the funeral director or funeral establishments.
Advertising
The rule sets forth the requirements for advertisements of funeral policies. These requirements include compliance with ch. Ins 2, disclosures as outlined, and responsibility of the insurer whose policy is advertised for ensuring that each advertisement complies with the laws and regulations and for approval of each advertisement prior to dissemination and use.
Marketing
The rule outlines requirements for the insurer in marketing funeral policies. These requirements include establishing and implementing written marketing procedures, training and monitoring its agent force to ensure compliance with the marketing procedures, and not accepting an application unless the application is on a completed approved form. The insurer is further required to make specified disclosures, statements, and questions on the application form.
Suitability
The rule requires an insurer to establish suitability standards. The rule specifies the subjects the standards must address. The insurer must train and monitor its agent force to ensure compliance with the standards. The section prohibits an insurer or agent from taking an application or issuing a funeral policy unless the policy is suitable for the applicant.
Solicitation
The rule details the requirements applicable to agents in soliciting funeral policies. The section requires agents to comply with the home solicitation rule and further outlines the disclosures that the agent is to make at the time of initial contact with a prospective buyer. Agents are prohibited from using certain solicitation practices which include:
/ Making any misleading representations, inducing the purchase of insurance through force, fright or threat;
/ Failing to disclose that a purpose of solicitation is the sale of insurance;
/ Using unapproved advertisement;
/ Interfering with the filing of a complaint with the Office of the Commissioner of Insurance; or
/ Interfering with an investigation or proceeding before the Office of the Commissioner of Insurance.
The agent further is required to provide the insurer with a list of funeral goods and services and comply with the outlined policy delivery requirements.
Administrative Rules Filed With The
Revisor Of Statutes Bureau
The following administrative rules have been filed with the Revisor of Statutes Bureau and are in the process of being published. The date assigned to each rule is the projected effective date. It is possible that the publication of these rules could be delayed. Contact the Revisor of Statutes Bureau at (608) 266-7275 for updated information on the effective dates for the listed rules.
An order affecting chs. ILHR 63 and 64, relating to ventilation and energy conservation.
Effective 01-01-97.
An order affecting ss. HSS 172.04, 175.04, 178.05, 195.04, 196.04, 197.04 and 198.04, relating to permit fees for the operation of public swimming pools, recreational and educational camps, campgrounds, hotels, motels and tourist rooming houses, restaurants, bed and breakfast establishments, and food and beverage vending operations.
Effective 02-01-97.
An order affecting ss. HSS 172.03 and 172.05, relating to operation of public swimming pools.
Effective 02-01-97.
An order affecting ss. NR 20.03, 20.036, 20.13 and 20.18, relating to sturgeon spearing.
Effective 02-01-97.
An order amending ss. NR 20.02 (1) (c) and 25.05 (1) (e), relating to sport and commercial fishing for yellow perch in Lake Michigan.
Effective 01-01-97.
An order amending s. NR 20.08 (10), relating to fishing tournament permitting.
Effective 01-01-97.
An order affecting ss. PI 11.02 and 11.35, relating to the definition of handicapping conditions, including significant developmental delay.
Effective 02-01-97.
An order affecting ch. PI 11, relating to the method of resolving disputes concerning children with exceptional educational needs (EEN) between school boards and the parents of those children.
Effective 02-01-97.
An order repealing and recreating ch. PSC 185, relating to standards for water public utility service.
Effective 02-01-97.
An order affecting ch. Trans 139.05 (8), relating to fee for title and registration processing contractors.
Effective 02-01-97.
P u b l i c N o t i c e
Workforce Development
(Wisconsin Works)
Background
The Wisconsin Department of Workforce Development, through its Division of Economic Support, will administer the Wisconsin Works program, the assistance program for families with dependent children, under ss. 49.141 to 49.161, Stats., as created by 1995 Wisconsin Act 289. Under s. 49.141(2)(b), Stats., if federal legislation has been enacted and the Department determines that sufficient funds are available, the Department may begin to implement the Wisconsin Works program no sooner than July 1, 1996, for selected counties or groups determined by the Department and must implement the program statewide for all groups no later than September 1997. Authorizing federal legislation, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193), was enacted August 22, 1996.
Section 49.141(2)(d), Stats., directs the Department to, before implementing the Wisconsin Works program, publish a notice in the Wisconsin Administrative Register that states the date on which the Department will begin to implement the Wisconsin Works program statewide.
W-2 Implementation
Through this notice the Department is announcing that the Department will begin to implement the Wisconsin Works program statewide in September 1997. The Department will now begin the phase-in of the Wisconsin Works program in selected counties and for selected groups as part of the transition to statewide implementation.
Contact Person
For more information about the implementation of the Wisconsin Works program, write:
Gary Kuhnen
Bureau of Welfare Initiatives
Division of Economic Support
P.O. Box 7935
Madison, WI 53707-7935
The State of Wisconsin
Department of Administration
Document Sales Unit
P.O. Box 7840
Dated Material. Please Do Not Delay!
