AB736: Bill Text

AB736,9 Section 9. 35.93 (3) (e) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB736,5,5 35.93 (3) (e) (intro.) The legislative reference bureau shall incorporate into the appropriate chapters of the Wisconsin administrative code each permanent rule filed with the legislative reference bureau under s. 227.20 (1) or modified under s. 227.265 and, for each chapter of the administrative code affected by a rule, do all of the following:

AB736,10 Section 10. 35.93 (3) (e) 1. of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB736,5,13 35.93 (3) (e) 1. Publish the chapter in the appropriate end-of-month register in accordance with the filing deadline for publication established in the rules procedures manual published under s. 227.15 (7) or, in an end-of-month register agreed to by the submitting agency and the legislative reference bureau , or, in the case of a rule modified under s. 227.265, in the end-of-month register for the month in which the bill modifying the rule is enacted.

AB736,11 Section 11. 227.01 (13) (intro.) of the statutes is amended to read:

AB736,5,21 227.01 (13) (intro.) "Rule" means a regulation, standard, statement of policy, or general order of general application which has the effect of law and which is issued by an agency to implement, interpret, or make specific legislation enforced or administered by the agency or to govern the organization or procedure of the agency. "Rule" includes a modification of a rule under s. 227.265. "Rule" does not include, and s. 227.10 does not apply to, any action or inaction of an agency, whether it would otherwise meet the definition under this subsection, which:

AB736,12 Section 12. 227.11 (2) (intro.) of the statutes is amended to read:

AB736,5,24 227.11 (2) (intro.) Rule-making authority is expressly conferred on an agency as follows:

AB736,13 Section 13. 227.265 of the statutes is created to read:

AB736,6,5 227.265 Repeal or modification of rules. If a bill to repeal or modify a rule is enacted, the procedures under ss. 227.114 to 227.21 and 227.26 do not apply. Instead, the legislative reference bureau shall publish the repeal or modification in the Wisconsin administrative code and register as required under s. 35.93, and the repeal or modification shall take effect as provided in s. 227.22.

AB736,14 Section 14. 227.27 (2) of the statutes is amended to read:

AB736,6,12 227.27 (2) The code shall be prima facie evidence in all courts and proceedings as provided by s. 889.01, but this does not preclude reference to or, in case of a discrepancy, control over a rule filed with the legislative reference bureau or the secretary of state under s. 227.20 or modified under s. 227.265, and the certified copy of a rule shall also and in the same degree be prima facie evidence in all courts and proceedings.

AB736,15 Section 15. Ins 3.46 (13) (a) (intro.) and 2. of the administrative code are consolidated, renumbered Ins 3.46 (13) (a) and amended to read:

AB736,6,19 Ins 3.46 (13) (a) An insurer may provide compensation to an intermediary or other representative, and an intermediary or representative may accept compensation for the sale of a long-term care policy or certificate only if: 2. The the compensation provided in the 2nd year or period and subsequent years is the same as provided in the 2nd year or period and is provided for at least 5 renewal years.

AB736,16 Section 16. Ins 3.46 (13) (a) 1. of the administrative code is repealed.

AB736,17 Section 17. Ins 3.46 (13) (b) of the administrative code is amended to read:

AB736,7,4 Ins 3.46 (13) (b) No Except as provided in par. (c), no person may provide compensation to an intermediary, representative or producer, and no intermediary, representative or producer may accept compensation, relating to the replacement of a long-term care policy or certificate which is greater than the renewal compensation provided by the replacing insurer for the replacing policy or certificate. Long-term care policies this paragraph applies and par. (c) apply to include, but are not limited to, long-term care policies, nursing home policies and home health care policies issued prior to June 1, 1991.

AB736,18 Section 18. Ins 3.46 (13) (c) of the administrative code is created to read:

AB736,7,10 Ins 3.46 (13) (c) A person may provide to an intermediary, and an intermediary may accept, compensation relating to the replacement of a long-term care policy or certificate; which compensation is no greater than the first-year compensation provided by the replacing insurer for the replacing policy or certificate if, in addition to requirements contained in sub. (14), all of the following criteria are satisfied:

AB736,7,12 1. The replacing insurer has established reasonable standards for which first-year compensation is appropriate for the replacement.

AB736,7,13 2. The standards referenced in subd. 1. include all of the following standards:

AB736,7,14 a. The replacing policy is suitable for the applicant.

AB736,7,17 b. The replacing policy materially improves the position of the applicant, including, but not limited to, the coverage, price, premium stability, or financial strength ratings of the insurer.

AB736,7,21 c. The intermediary has done an assessment of the replacement transaction justifying the replacement according to the insurer's replacement standards and this subd. 2. c. and submits that assessment to the insurer as part of the application for replacement.

AB736,7,24 d. The insurer evaluates each replacement and affirmatively approves or denies the replacement's qualification for first-year compensation of the replacing policy.

AB736,8,2 e. The standards and methodology are subject to review by the office of the commissioner of insurance.

AB736,8,4 3. The replacing insurer has established an auditable methodology for evaluating replacements that qualify for first-year compensation.

AB736,19 Section 19. Effective dates. This act takes effect on the day after publication, except as follows:

AB736,8,8 (1) The treatment of section 35.93 (2) (b) 4. and (c) 1. and (3) (e) (intro.) and 1. of the statutes takes effect on January 1, 2015.

AB736,8,9 (End)