The objective of the rule is to repeal and recreate ch. DFI—Bkg 77. Currently ch. DFI—Bkg 77, relates to the “Consumer Credit Review Board." However, this chapter is no longer necessary and should be repealed because this board was legislatively abolished. Currently pawnbrokers are subject to regulation under s.
138.10, Stats. However,
2005 Wisconsin Act 158 provides that, effective October 1, 2006, if a pawnbroker registers as a licensed lender under s.
138.09, Stats., the pawnbroker is exempt from the requirements of s.
138.10, Stats. The purpose of this rule is to set forth, in the recreated ch. DFI—Bkg 77, matters pertaining to the regulation of pawnbrokers, including definitions, hours and days of operation, holding periods, law enforcement requests and orders, notice of sales, effect of nonredemption, agreements and extensions, prohibited practices, and lost or damaged goods.
Fiscal Estimate
The rule's requirements place no additional duties or burdens on state or local government, and hence has no affect on costs to either.
Contact Person
To obtain a copy of the proposed rule or fiscal estimate at no charge, to submit written comments regarding the proposed rule, or for questions regarding the agency's internal processing of the proposed rule, contact Mark Schlei, Deputy General Counsel, Department of Financial Institutions, Office of the Secretary, P.O. Box 8861, Madison, WI 53708-8861, tel. (608) 267-1705. A copy of the proposed rule may also be obtained and reviewed at the Department of Financial Institution's website,
www.wdfi.org. Written comments regarding the proposed rule may also be submitted via the department's website contact page, e-mail the secretary. Written comments must be received by the conclusion of the department's hearing regarding the proposed rule. For substantive questions on the rule, contact Michael J. Mach, Administrator, Department of Financial Institutions, Division of Banking, P.O. Box 7876, Madison, WI 53707-7876, tel. (608) 266-0451.
Notice of Hearing
Financial Institutions - Banking
NOTICE IS HEREBY GIVEN That pursuant to ss.
426.104 (1) (e) and
227.11 (2), Stats., and interpreting s.
425.206 (1) (d), Stats., the Department of Financial Institutions, Office of Consumer Affairs will hold a public hearing at the Department of Financial Institutions, 345 W. Washington Avenue in the city of Madison, Wisconsin, on the
13th day of December, 2006, at 10:00 a.m. to consider a rule to amend s. DFI—Bkg 80.68, relating to nonjudicial enforcement and surrender of collateral.
Analysis Prepared by the Department of Financial Institutions, Office of Consumer Affairs
The objective of the rule is to amend s. DFI—Bkg 80.86. The purpose of this rule is to bring s. DFI—Bkg 80.68 into conformity with newly created s.
425.206 (1) (d), Stats. Under the current s. DFI—Bkg 80.68, where a merchant request or demands the return of collateral, after providing the customer with notice of default and opportunity to cure as required by s.
425.105, Stats., a release of the collateral by the customer is not a surrender under ss.
425.204 (3) and
425.206 (1), Stats., if the merchant fails to provide a notice to the customer which clearly informs the customer of the right to a hearing on the issue of default before any repossession.
2005 Wisconsin Act 255, s.
8 created s.
425.206 (1) (d), Stats. This statute section provides that notwithstanding any other provision of law, no merchant may take possession of collateral or goods subject to a consumer lease in this state except when, for motor vehicle collateral or goods subject to a motor vehicle consumer lease, the customer has not made a demand as specified in s.
425.205 (1g) (a) 3., Stats., and, no sooner than 15 days after the merchant gives the notice specified in s.
425.205 (1g) (a), Stats., the merchant has taken possession of the collateral or goods in accordance with s.
425.206 (2), Stats. The rule amends s. DFI—Bkg 80.68 to incorporate the provisions of s.
425.206 (1) (d), Stats. The rule provides that where a merchant requests or demands the return of collateral, after providing the customer with notice of default and opportunity to cure as required by s.
425.105, Stats., a release of the collateral by the customer is not a surrender under ss.
425.204 (3) and
425.206 (1), Stats., if the merchant fails to provide a notice to the customer which clearly informs the customer of the right to a hearing on the issue of default before any repossession unless the creditor has perfected its right to repossession under s.
425.206 (1) (d), Stats.
Fiscal Estimate
The rule places no additional duties or burdens on state or local government, and hence has no affect on costs to either.
Contact Person
To obtain a copy of the proposed rule or fiscal estimate at no charge, to submit written comments regarding the proposed rule, or for questions regarding the agency's internal processing of the proposed rule, contact Mark Schlei, Deputy General Counsel, Dept. of Financial Institutions, Office of the Secretary, P.O. Box 8861, Madison, WI 53708-8861, tel. (608) 267-1705. A copy of the proposed rule may also be obtained and reviewed at the Department of Financial Institution's website,
www.wdfi.org. Written comments regarding the proposed rule may also be submitted via the department's website contact page, e-mail the secretary. Written comments must be received by the conclusion of the department's hearing regarding the proposed rule.
For substantive questions on the rule, contact Paul Egide, Director, Department of Financial Institutions, Office of Consumer Affairs, P.O. Box 8041, Madison, WI 53708-8041, tel. (608) 267-3518.
Notice of Hearing
Financial Institutions - Corporate and Consumer Affairs
NOTICE IS HEREBY GIVEN That pursuant to ss.
227.11 (2) and
409.526 (1), Stats., and interpreting s.
409.519, Stats., the Department of Financial Institutions, Division of Corporate and Consumer Services will hold a public hearing at Wisconsin Department of Financial Institutions, Office of the Secretary, 345 W. Washington Avenue, 5
th Floor in the city of Madison, Wisconsin, on the
13th day of December, 2006, at 9:00 a.m. to consider a rule to repeal and recreate s. DFI—CCS 5.04 relating to UCC search requests.
Analysis Prepared by Dept. of Financial Institutions, Division of Corporate and Consumer Affairs
The objective of the rule is to repeal and recreate s. DFI—CCS 5.04. Under current law, in creating search results for records of UCC documents filed with the department, certain standardized search logic is applied to the name presented to the filing office by the person requesting the search. The purpose of this rule is to set forth, in recreated s. DFI—CCS 5.04, revised standardized search logic. Under the proposed rule, the standardized search logic set forth more accurately reflects the methodology used.
Fiscal Estimate
The rule places no additional duties or burdens on state or local government, and hence has no affect on costs to either.
Contact Person
To obtain a copy of the proposed rule or fiscal estimate at no charge, to submit written comments regarding the proposed rule, or for questions regarding the agency's internal processing of the proposed rule, contact Mark Schlei, Deputy General Counsel, Department of Financial Institutions, Office of the Secretary, P.O. Box 8861, Madison, WI 53708-8861, tel. (608) 267-1705. A copy of the proposed rule may also be obtained and reviewed at the Department of Financial Institution's website,
www.wdfi.org. Written comments regarding the proposed rule may also be submitted via the department's website contact page, e-mail the secretary. Written comments must be received by the conclusion of the department's hearing regarding the proposed rule.
For substantive questions on the rule, contact Ray Allen, Deputy Administrator, Department of Financial Institutions, Division of Corporate and Consumer Affairs, P.O. Box 7847, Madison, WI 53708-7847, tel. (608) 264-7950.
Notice of Hearing
Insurance
Notice is hereby given that pursuant to the authority granted under s.
601.41 (3), Stats., and the procedures set forth in under s.
227.18, Stats., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order affecting Section
Ins 6.77, Wis. Adm. Code, relating to underinsured and uninsured motorist coverage in umbrella and commercial policies and affecting small business. This hearing will also be held in compliance with s.
227.24 (4) concerning the emergency rule which corresponds to the proposed rule, as this proposed rule has been issued as an emergency rule.
Hearing Information
Date: December 11, 2006
Time: 10:00 a.m., or as soon thereafter as the matter may be reached
Place: OCI, Room 227, 125 South Webster St 2nd Floor, Madison, WI
Written comments can be mailed to:
Mr. Robert Luck
Legal Unit - OCI Rule Comment for Rule Ins 6.77
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
Mr. Robert Luck
Legal Unit - OCI Rule Comment for Rule Ins 6.77
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53702
Comments can be emailed to:
Robert Luck
Comments submitted through the Wisconsin Administrative Rule website at: http://adminrules. wisconsin.gov on the proposed rule will be considered.
The deadline for submitting comments is 4:00 p.m. on the 8th day after the date for the hearing stated in this Notice.
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
1. Statutes interpreted:
2. Statutory authority:
3. Explanation of the OCI's authority to promulgate the proposed rule under these statutes:
Under s.
631.01 (5), the commissioner is given authority to exempt certain classes of insurance from the requirements of 631.36 or 632.32, Stats. The commissioner has previously exercised this authority in adopting and amending Ins 6.77, Wis. Admin. Code.
4. Related Statutes or rules: Ins 6.77, Wisc. Admin. Code
5. The plain language analysis and summary of the proposed rule:
This rule would remove the requirement that umbrella and commercial policies give notice of the availability of underinsured motorists coverage. The obligation to give this notice would rest solely with the insurer writing the auto coverage.
In addition, the current exemption from the requirement to offer uninsured motorists for umbrella policies would be expanded to include commercial liability policies.
6. Summary of and comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule: None.
7. Comparison of similar rules in adjacent states:
Illinois: 215 ILCS 5/143a In Hartbarger v. Country Mut. Ins. Co., 107 Ill. App. 3d 391, it was found that this section was enacted to insure a minimum amount of uninsured motorist protection, but did not give the authority to rewrite unambiguous provisions of an umbrella policy in order to expand the maximum coverage afforded plaintiff.
Iowa: Iowa Code § 321A.21 Primary insurance is purchased to be the first tier of insurance coverage while an umbrella policy is intended to cover only catastrophic losses that exceed the insured's required primary insurance limit. "Umbrella" policies are not included under Iowa Code § 321A.21, the financial responsibility statute. Jalas v. State Farm Fire & Cas. Co.,
505 N.W.2d 811, 1993 Iowa Sup. LEXIS 211 (Iowa 1993).
Michigan: Sec. 257.520(a) Michigan is a no-fault state and thus is not comparable to Wisconsin. Michigan defines a “motor vehicle liability policy" as an owner's or an operator's policy of liability insurance which would appear to not include an umbrella policy.
Minnesota: 65B.49 Minnesota is a no-fault state and thus is not comparable to Wisconsin. Uninsured and underinsured coverage is required in auto policies.
8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:
OCI review of complaints, NAIC models, insurer's financial information
9. Any analysis and supporting documentation that OCI used in support of OCI's determination of the rule's effect on small businesses under s.
227.114:
The change will continue the existing practice used by insurers issuing umbrella and commercial policies. As such, it will have no impact.
10. If these changes may have a significant fiscal effect on the private sector, the anticipated costs that will be incurred by private sector in complying with the rule:
These changes will not have a significant fiscal effect on the private sector.
11. A description of the Effect on Small Business:
This rule will have little or no effect on small businesses.
12. Agency contact person:
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI WEB sites at:
http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, OCI Services Section, at:
Phone: (608) 264-8110
Address: 125 South Webster St – 2nd Floor
Madison WI 53702
Mail: PO Box 7873, Madison WI 53707-7873
13. Place where comments are to be submitted:
Mailing address:
Robert Luck, Legal Unit
OCI Rule Comment for Rule Ins 6
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
Robert Luck, Legal Unit
OCI Rule Comment for Rule Ins 6
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53702
Email address:
