632.68(9)(c)1.d.
d. If the insured's life expectancy is more than 24 months but not more than 36 months, 55% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)1.e.
e. If the insured's life expectancy is more than 36 months but not more than 48 months, 45% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)1.f.
f. If the insured's life expectancy is more than 48 months, 30% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)2.
2. If the total of the premiums that the viatical settlement provider expects to pay under the policy or certificate exceeds 5% of the face value of the policy or certificate, the viatical settlement provider may reduce the minimum payment amount under
subd. 1. by the percentage of the face value that the total of the premiums that the viatical settlement provider expects to pay equals.
632.68(9)(d)
(d) Every viatical settlement contract entered into in this state shall provide that the policyholder or certificate holder entering into the contract has the unconditional right to rescind the contract within 30 days after the contract is entered into or 15 days after receiving the viatical settlement proceeds, whichever is sooner. If the policyholder or certificate holder wishes to rescind the contract after receipt of the viatical settlement proceeds, the policyholder or certificate holder must refund the proceeds.
632.68(9)(e)
(e) If a policy or certificate that is the subject of a viatical settlement contract contains a provision for double or additional indemnity for accidental death, the viatical settlement contract shall provide for the same additional payment to a beneficiary named payable in the viatical settlement contract by the policyholder or certificate holder.
632.68(9)(f)
(f) Upon receipt from the policyholder or certificate holder of all documents necessary for the transfer of the life insurance policy or certificate, the viatical settlement provider shall pay all of the proceeds of the settlement into a trust account or escrow account in a bank, to be managed by a trustee or escrow agent. The trustee or escrow agent shall pay the proceeds to the former policyholder or certificate holder immediately upon receiving acknowledgement from the insurer issuing the life insurance policy or certificate that the policy or certificate has been transferred to the viatical settlement provider. Payment shall be made in a lump sum by certified check, wire transfer or electronic fund transfer to an account of the former policyholder or certificate holder, or in instalments if the settlement is effected through the purchase of an annuity or similar instrument from a person authorized by this or another state to issue annuities.
632.68(10)
(10) General rules related to viatical settlements. 632.68(10)(a)(a) A viatical settlement provider or broker may not discriminate in the making of viatical settlements on the basis of race, age, sex, national origin, creed, religion, occupation, marital or family status, sexual orientation or whether the person whose life is insured under the policy or certificate has dependents, unless any such factor affects the life expectancy of the person whose life is insured.
632.68(10)(b)
(b) A viatical settlement provider or broker may not pay or offer to pay a finder's fee, commission or other compensation to a physician, attorney, accountant or other person providing medical, legal or financial planning services to the policyholder or certificate holder of a policy or certificate that may be the subject of a viatical settlement contract, or to any other person acting as an agent of the policyholder or certificate holder with respect to a viatical settlement.
632.68(10)(c)
(c) A viatical settlement provider or broker shall comply with the confidentiality requirements of
ss. 51.30,
146.82 and
252.15 with respect to any medical information obtained by the viatical settlement provider or broker concerning the person whose life is insured under the policy or certificate.
632.68(10)(d)
(d) Contacts by a viatical settlement provider or broker for the purpose of determining the health status of a person whose life is insured under a policy or certificate that was the subject of a viatical settlement contract shall be limited to once every 3 months if the person's life expectancy was more than one year at the time that the viatical settlement contract was entered into and once per month if the person's life expectancy was one year or less at the time that the viatical settlement contract was entered into.
632.68(10)(e)
(e) The owner of a life insurance policy or certificate may not be required to enter into a viatical settlement contract as a condition of eligibility for public assistance, or as a condition for receiving the full amount of public assistance benefits for which the person is otherwise eligible.
632.68(10)(f)
(f) A viatical settlement provider or broker may not solicit or accept as investors in a life insurance policy or certificate that is the subject of a viatical settlement contract persons who are in a position to influence the treatment of the catastrophic or life-threatening illness or condition of the person whose life is insured under the policy or certificate.
632.68(10)(g)1.1. Advertising related to viatical settlements shall be truthful and may not be misleading by fact or implication.
632.68(10)(g)2.
2. If an advertisement emphasizes the speed with which a viatical settlement may occur, the advertisement shall disclose, by life expectancy category under
sub. (9) (c), the average time between the completion of the application and the receipt of the settlement proceeds under contracts with the advertiser.
632.68(10)(g)3.
3. If an advertisement emphasizes the amount of proceeds that may be received, the advertisement shall disclose, by life expectancy category under
sub. (9) (c), the average purchase price as a percentage of policy face value that has been obtained under contracts with the advertiser during the past 6 months.
632.68(11)(a)(a) The commissioner may require the filing of a bond as a condition of licensure under this section.
632.68(11)(b)
(b) The commissioner may promulgate rules that do any of the following:
632.68(11)(b)1.
1. Establish standards for determining the reasonableness of payments under viatical settlement contracts that exceed the minimum percentages under
sub. (9) (c).
632.68(11)(b)2.
2. Establish the maximum fee that a viatical settlement provider may pay a viatical settlement broker for services provided.
632.68(11)(b)3.
3. Establish standards regarding the duty of insurers to respond without unreasonable delay to a request, in writing and authorized by the policyholder or certificate holder, from a viatical settlement provider or broker for information related to a policy or certificate.
632.68(11)(b)4.
4. Define a viatical settlement agent and establish regulations related to viatical settlement agents that are consistent with this section.
632.68(11)(b)5.
5. Establish any additional standards that may be necessary for the administration of this section.
632.68 History
History: 1995 a. 371.
DISABILITY INSURANCE
632.70
632.70
Exemption for plan under ch. 635. The health insurance mandates, as defined in
s. 601.423 (1), that are provided under this subchapter apply to the small employer health insurance plan under
subch. II of ch. 635 only to the extent determined by the small employer insurance board under
s. 635.23 (1) (b).
632.70 History
History: 1991 a. 250.
632.71
632.71
Estoppel from medical examination, assignability and change of beneficiary. Sections 632.47 to
632.50 apply to disability insurance policies.
632.71 History
History: 1975 c. 373,
375,
422.
632.715
632.715
Reports of action against health care provider. Every insurer that has taken any action against a person who holds a license granted by the medical examining board or an affiliated credentialing board attached to the medical examining board shall notify the board or affiliated credentialing board of the action taken against the person if the action relates to unprofessional conduct or negligence in treatment by the person who holds the license.
632.715 History
History: 1985 a. 340;
1993 a. 107.
632.72
632.72
Medical benefits or assistance; assignment. 632.72(1g)(a)
(a) "Department or contract provider" means the department of health and family services, the county providing the medical benefits or assistance or a health maintenance organization that has contracted with the department of health and family services to provide the medical benefits or assistance.
632.72(1g)(b)
(b) "Medical benefits or assistance" means health care services funded by a relief block grant under
ch. 49; medical assistance, as defined under
s. 49.43 (8); or maternal and child health services under
s. 253.05.
632.72(1r)
(1r) The providing of medical benefits or assistance constitutes an assignment to the department or contract provider. The assignment shall be, to the extent of the medical benefits or assistance provided, for benefits to which the recipient would be entitled under any policy of health and disability insurance.
632.72(2)
(2) An insurer may not impose on the department or contract provider, as assignee of a person who is covered under the policy of health and disability insurance and who is eligible for medical benefits or assistance, requirements that are different from those imposed on any other agent or assignee of a person who is covered under the policy of health and disability insurance.
632.725
632.725
Standardization of health care billing and insurance claim forms. 632.725(1)
(1)
Definition. In this section, "health care provider" has the meaning given in
s. 146.81 (1).
632.725(2)
(2) Rules for standardization of forms. The commissioner, in consultation with the department of health and family services, shall, by rule, do all of the following:
632.725(2)(a)
(a) Establish a standardized billing format for health care services and require that a health care provider that provides health care services in this state use, by July 1, 1993, the standardized format for all printed billing forms.
632.725(2)(b)
(b) Establish a standardized claim format for health care insurance benefits and require that an insurer that provides health care coverage to one or more residents of this state use, by July 1, 1993, the standardized format for all printed claim forms.
632.725(2)(c)
(c) Establish a standardized explanation of benefits format for health care insurance benefits and require that an insurer that provides health care coverage to one or more residents of this state use, by July 1, 1993, the standardized format for all printed forms that contain an explanation of benefits. The rule shall also require that benefits be explained in easily understood language.
632.725(2)(d)
(d) Establish a uniform statewide patient identification system in which each individual who receives health care services in this state is assigned an identification number. The standardized billing format established under
par. (a) and the standardized claim format established under
par. (b) shall provide for the designation of an individual's patient identification number.
632.725(3)
(3) Proposals for legislation. The commissioner shall develop proposals for legislation for the use of the patient identification system established under
sub. (2) (d) and for the implementation of the proposed uses, including any proposals for safeguarding patient confidentiality.
632.725 History
History: 1991 a. 250;
1995 a. 27 s.
9126 (19).
632.73
632.73
Right to return policy. 632.73(1)
(1)
Right of return. A policyholder may return an individual or franchise disability policy within 10 days after receipt. If the policyholder does so, the contract is void, and all payments made under it shall be refunded. This subsection does not apply to medicare supplement policies, medicare replacement policies or long-term care insurance policies subject to
sub. (2m).
632.73(2)
(2) Notification. Subsection (1) shall in substance be conspicuously printed on the first page of each such policy or conspicuously attached thereto.
632.73(2m)
(2m) Medicare supplement policies, medicare replacement policies and long-term care insurance policies. Medicare supplement policies, medicare replacement policies and long-term care insurance policies shall have a notice that complies with this subsection prominently printed on the first page of the policy or certificate, or attached thereto. The notice shall state that the policyholder or certificate holder shall have the right to return the policy or certificate within 30 days of its delivery to the policyholder or certificate holder and to have the premium refunded to the person who paid the premium if, after examination of the policy or certificate, the policyholder or certificate holder is not satisfied for any reason. The commissioner may by rule exempt from this subsection certain classes of medicare supplement policies, medicare replacement policies and long-term care insurance policies, if the commissioner finds the exemption is not adverse to the interests of policyholders and certificate holders.
632.73(3)(a)(a)
Specified. This section does not apply to single premium nonrenewable policies issued for terms not greater than 6 months or covering accidents only or accidental bodily injuries only.
632.73(3)(b)
(b)
By rule. The commissioner may by rule permit exemptions from
subs. (1) and
(2) for additional classes or parts of classes of insurance where the right to return the policy would be impracticable or is not necessary to protect the policyholder's interests.
632.74
632.74
Reinstatement of individual or franchise disability insurance policies. 632.74(1)
(1)
Conditions of reinstatement. If an insurer, after termination of an individual or franchise disability insurance policy for nonpayment of premium, within one year after the termination accepts without reservation a premium payment, the policy is reinstated as of the date of the acceptance. There is no acceptance without reservation if the insurer delivers or mails a written statement of reservations within 45 days after receipt of the payment.
632.74(2)
(2) Consequences of reinstatement. If a policy is reinstated under
sub. (1) or if the insurer within one year after the termination issues to the policyholder a reinstatement policy, any losses resulting from accidents occurring or sickness beginning between the termination and the effective date of the reinstatement or the new policy are not covered, and no premium is payable for that period, except to the extent that the premium is applied to a reserve for future losses. The insurer may also charge a reinstatement fee in accordance with a schedule that has been filed with and expressly approved by the commissioner as not excessive and not unreasonably discriminatory. In all other respects, the reinstated or renewed contract shall be treated as an uninterrupted contract subject to any provisions which are endorsed on or attached to the contract in connection with the reinstatement and which are fully and prominently disclosed to the policyholder.
632.745
632.745
Coverage requirements for group health benefit plans. 632.745(1)(a)1.1. Except as provided in
subd. 2., "eligible employe" means an employe who works on a permanent basis and has a normal work week of 30 or more hours. The term includes a sole proprietor, a business owner, including the owner of a farm business, a partner of a partnership and a member of a limited liability company if the sole proprietor, business owner, partner or member is included as an employe under a health benefit plan of an employer, but the term does not include an employe who works on a temporary or substitute basis.
632.745(1)(a)2.
2. For purposes of a group health benefit plan, or a self-insured health plan, that is offered by the state under
s. 40.51 (6) or by the group insurance board under
s. 40.51 (7), "eligible employe" has the meaning given in
s. 40.02 (25).
632.745(1)(b)1.
1. An individual, firm, corporation, partnership, limited liability company or association that is actively engaged in a business enterprise in this state, including a farm business.
632.745(1)(c)
(c) "Group health benefit plan" means a health benefit plan that is issued by an insurer to an employer on behalf of a group consisting of eligible employes of the employer. The term includes individual health benefit plans covering eligible employes when 3 or more are sold to an employer.
632.745(1)(d)
(d) "Health benefit plan" means any hospital or medical policy or certificate. "Health benefit plan" does not include accident-only, credit accident or health, dental, vision, medicare supplement, medicare replacement, long-term care, disability income or short-term insurance, coverage issued as a supplement to liability insurance, worker's compensation or similar insurance, automobile medical payment insurance, individual conversion policies, specified disease policies, hospital indemnity policies, as defined in
s. 632.895 (1) (c), policies or certificates issued under the health insurance risk-sharing plan or an alternative plan under
subch. II of ch. 619 or other insurance exempted by rule of the commissioner.
632.745(1)(e)
(e) "Insurer" means an insurer that is authorized to do business in this state, in one or more lines of insurance that includes health insurance, and that offers group health benefit plans covering eligible employes of one or more employers in this state. The term includes a health maintenance organization, as defined in
s. 609.01 (2), a preferred provider plan, as defined in
s. 609.01 (4), an insurer operating as a cooperative association organized under
ss. 185.981 to
185.985 and a limited service health organization, as defined in
s. 609.01 (3).
632.745(1)(f)1.1. "Qualifying coverage" means benefits or coverage provided under any of the following:
632.745(1)(f)1.b.
b. A group health benefit plan or an employer-based health benefit arrangement that provides benefits similar to or exceeding benefits provided under a basic health benefit plan under
subch. II of ch. 635.
632.745(1)(f)1.c.
c. An individual health benefit plan that provides benefits similar to or exceeding benefits provided under a basic health benefit plan under
subch. II of ch. 635, if the individual health benefit plan has been in effect for at least one year.
632.745(1)(f)2.
2. Notwithstanding
subd. 1. b. and
c., "qualifying coverage" does not include a high cost-share health plan, as defined in
s. 632.898 (1) (c), that is linked to a medical savings account, as described in
s. 632.898, if the employer that provides the individual's new coverage offers its eligible employes a choice of health benefit plan options that includes a high cost-share health plan, as defined in
s. 632.898 (1) (c), and the individual's new coverage is not a high cost-share health plan.
Effective date note
NOTE: Subd. 2. is created eff. 5-1-97 by
1995 Wis. Act 453. Subd. 2. is repealed by
1995 Wis. Act 453 effective on the 31st day after the day on which the commissioner of insurance certifies to the revisor of statutes under s. 632.898 (7) that subd. 2. is not necessary for the purpose for which it was intended.
632.745(1)(g)
(g) "Self-insured health plan" means a self-insured health plan of the state or a county, city, village, town or school district.
632.745(2)(a)(a) A group health benefit plan, or a self-insured health plan, may not deny, exclude or limit benefits for a covered individual for losses incurred more than 12 months after the effective date of the individual's coverage due to a preexisting condition.
632.745(2)(b)
(b) Except as provided in
par. (c), a group health benefit plan, or a self-insured health plan, may not define a preexisting condition more restrictively than any of the following:
632.745(2)(b)1.
1. A condition that would have caused an ordinarily prudent person to seek medical advice, diagnosis, care or treatment during the 6 months immediately preceding the effective date of coverage and for which the individual did not seek medical advice, diagnosis, care or treatment.
632.745(2)(b)2.
2. A condition for which medical advice, diagnosis, care or treatment was recommended or received during the 6 months immediately preceding the effective date of coverage.
632.745(2)(c)
(c) Notwithstanding
par. (b) 1. and
2., a group health benefit plan, or a self-insured health plan, shall exclude pregnancy from the definition of a preexisting condition for the purpose of coverage of expenses related to prenatal and postnatal care, delivery and any complications of pregnancy.
