LRB-3665/1
MDK:wlj:jf
1999 - 2000 LEGISLATURE
October 20, 1999 - Introduced by Senators Breske, Rude and Shibilski,
cosponsored by Representatives
F. Lasee, Musser, Ryba, La Fave, Pettis,
Wasserman, Hoven, Grothman, Underheim and Albers. Referred to
Committee on Insurance, Tourism, Transportation and Corrections.
SB257,1,3
1An Act to amend 632.41 (2) (b) 2. and 632.43 (8) (a) (intro.) of the statutes;
2relating to: minimum standards for life insurance policies in which the
3proceeds are assigned to funeral directors or funeral establishment operators.
Analysis by the Legislative Reference Bureau
Under current law, life insurance policies are subject to certain requirements
that are administered by the commissioner of insurance. One of these requirements
is that a life insurance policy may provide for the assignment of the proceeds of the
policy to a funeral director or operator of a funeral establishment only if certain
requirements, including requirements regarding the sale of the policy, are satisfied.
In addition, the commissioner of insurance is required to promulgate rules that
establish minimum standards for benefits, claims payments, marketing practices,
compensation arrangements and reporting practices for such policies.
This bill eliminates the authority of the commissioner of insurance to
promulgate rules establishing minimum standards for benefits and compensation
arrangements for such policies, but does not affect the commissioner's other
rule-making authority for such policies, nor does the bill affect other requirements
regarding life insurance policies that are administered by the commissioner under
current law. In addition, the bill specifies that policies that provide for the
assignment of proceeds to a funeral director or funeral establishment operator must
provide for certain nonforfeiture benefits that are required, with certain exceptions,
for life insurance policies generally under current law.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB257, s. 1
1Section
1. 632.41 (2) (b) 2. of the statutes is amended to read:
SB257,2,52
632.41
(2) (b) 2. Subject to subd. 3., the commissioner shall by rule establish
3minimum standards for
benefits, claims payments, marketing practices
,
4compensation arrangements and reporting practices for life insurance policies sold
5under subd. 1.
SB257, s. 2
6Section
2. 632.43 (8) (a) (intro.) of the statutes is amended to read:
SB257,2,87
632.43
(8) (a) (intro.)
This Except for a life insurance policy under s. 632.41 (2)
8(b) 1., this section does not apply to any
of the following:
SB257,2,1110
(1) This act first applies to policies that are issued on the effective date of this
11subsection.
