608-266-9314
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 s.
227.18, Stats., OCI will hold a public hearing to consider the adoption of a proposed rule affecting chapters Ins 6, 26, and 28, Wis. Adm. Code, relating to licensing for travel insurance.
Hearing Information
Date: November 28, 2007
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
Submission of Written Comments
Written comments can be mailed to:
Robert Luck
Legal Unit - OCI Rule Comment for Rule Ins 6
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
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 53703-3474
Email address:
The deadline for submitting comments is 4:00 p.m. on the 14th day after the date for the hearing stated in this Notice of Hearing.
Copy of Rule and Contact Person
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI Web site 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
Analysis Prepared by the Office of the Commissioner Of Insurance (OCI)
Statute interpreted
Statutory authority
Explanation of agency authority
The proposed rule is promulgated under the commissioner's authority to prescribe classifications of intermediaries by kind of authority, or kind of insurance, or in other ways and authority to prescribe different standards of competence, including examinations and educational prerequisites for each class.
Related statutes or rules
None
Plain language analysis
A new limited line license is created for travel insurance. Wisconsin currently has four limited lines of insurance authority: credit, title, legal expense and miscellaneous limited lines insurance. Each limited line has requirements set by the commissioner for testing, prelicensing education and continuing education.
In order to simplify multi-state licensing of insurance producers, Wisconsin and other states, through the National Association of Insurance Commissioners (“NAIC") have committed to make licensing standards more uniform. The NAIC has adopted Uniform Resident Licensing Standards. Included in these standards is a definition for limited line travel insurance. This rule creates a new limited line for travel insurance, adopting the uniform definition approved by the NAIC.
The rule exempts persons holding a travel insurance license from prelicensing education, examination and continuing education requirements. These exemptions are consistent with the NAIC uniform standards.
In addition, the rule revises 2 sections to clearly state the current requirements regarding prelicensing education for Managing General Agents and when prelicensing must be taken.
Comparison with federal regulations
There are no federal regulations which address licensing of travel insurance agents.
Comparison with adjacent states
According to the NAIC, 44 states accept license applications for the limited line of travel insurance.
An independent fifty state review of insurance laws and regulations found that a majority of states have some form of limited line travel license available for resident producers. A number of these states do not provide express authority to issue limited lines travel insurance licenses; however, there are other references to these licenses in the statutes or regulations.
The only states in which express or implied authority to issue limited line travel licenses were not found are as follows: Alabama, District of Columbia, Nebraska, Rhode Island and Wisconsin. The following states do not provide express authority for these licenses but reference the licenses in statutes or regulations which may imply availability: Arkansas, Connecticut (although there is no statutory authority, a bulletin issued by the Connecticut Department of Insurance states that a Travel Limited Line license is available), Iowa (only express authority is for vehicle rental companies), Kansas, Michigan, Montana, North Dakota, Pennsylvania, Texas (offers a specialty license) and West Virginia.
Illinois – Illinois offers limited lines licenses for travel insurance under 215 ILCS 5/500-100.
Iowa – Iowa provides an exception to licensing for travel agents under s. 522B.3(i).
Michigan – Michigan provides a limited Property & Casualty license that covers a variety of products including travel accident and baggage. An exam is required. Chapter
12 Michigan Insurance Code.
Minnesota – An insurance producer may receive qualification for a license in the limited line of “travel baggage insurance." Minn. Ins. Code § 60K.38(1)(c)(4).
Summary of factual data and analytical methodologies
A majority of states have adopted a limited line travel insurance license. The definition used in this rule is consistent with the recommended uniform definition. Without a limited line license in Wisconsin, Wisconsin residents who sell travel insurance in other states cannot obtain nonresident licenses in the other states. Therefore, these individuals are subjected to an additional regulatory burden in order to obtain these licenses in other states. Adoption of this rule will facilitate regulatory compliance in other states for Wisconsin residents.
Analysis and supporting documentation used to determine effect on small businesses
Promulgation of this rule will facilitate Wisconsin-based businesses that offer travel insurance in obtaining non-resident insurance licenses in other states that provide limited line travel insurance licenses. The most efficient method of obtaining a nonresident insurance producer license is to hold a license with the same authority in the producer's state of residence. This allows the producer to apply for nonresident licenses in other states and comply with the licensing requirements of the producer's state of residence.
Initial Regulatory Flexibility Analysis
This rule would have a positive effect on small businesses that offer travel insurance in Wisconsin and other states.
This rule does not impose any additional requirements on small businesses.
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266-7843 or at email address
eileen.mallow@wisconsin.gov
Fiscal Estimate
It is unknown how many agents will seek this authority. The fee for each agent seeking only this line is $50 under s.
Ins 6.59 (3), Wis. Adm. Code. The OCI is making the assumption that there will be about 250 applications initially. One large insurer in this line of business estimates that about 60 employees would be initially licensed for travel insurance. After the initial surge, there might be about 50 total new applications per year resulting in annual revenues of $2,500.
To implement a new line of insurance, OCI will incur one time programming expenses both for OCI employees and OCI's licensing vendor. It is unknown precisely the cost but probably around $2,000 in one time costs.
This rule change will have no state or local government fiscal effect nor a significant effect on the private sector regulated by OCI.
Notice of Hearing
Pharmacy Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Pharmacy Examining Board in ss.
15.08 (5) (b),
227.11 (2) and
450.02 (2),
(3) (d) and
(e), Stats., and interpreting ss.
450.11 (1),
(4) and
(4g) (b) and
450.12, Stats., the Pharmacy Examining Board will hold a public hearing at the time and place indicated below to consider an order to amend s.
Phar 7.02, relating to prescription labels.
Hearing Information
Date: December 5, 2007
Time: 9:30 a.m.
Location: 1400 East Washington Avenue
(Enter at 55 North Dickinson Street)
Room 121A
Madison, Wisconsin
Appearances at the Hearing and Submission of Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to Pamela Haack, Paralegal, Department of Regulation and Licensing, Office of Legal Counsel, 1400 East Washington Avenue, Room 152, P.O. Box 8935, Madison, Wisconsin 53708-8935, or by email at pamela.haack@drl. state.wi.us. Comments must be received on or before December 7, 2007, to be included in the record of rule-making proceedings.
Analysis Prepared by the Department of Regulation and Licensing
Statutes interpreted
Statutory authority
Explanation of agency authority
The Wisconsin Pharmacy Examining Board is granted the authority to protect the public health, safety and welfare by establishing minimum standards for the practice of pharmacy, which includes the practice activities for a pharmacist and for a pharmacy technician.
Related statutes or rule
Plain language analysis
