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
This proposed rule-making will conform a pharmacy practice rule to recent statutory changes brought about by
2005 Wisconsin Act 195. In instances when a drug product equivalent is dispensed, the Act permits inclusion on the label of both the generic name and the brand name of the drug product equivalent specified in the prescription order. The brand name must be omitted from the label if the prescribing practitioner requests that it be omitted.
Comparison with federal regulation
There is no existing or proposed federal regulation for summary and comparison.
Comparison with rules in adjacent states
Iowa: Iowa Admin. Code r. 657-6.(10)(1), does not allow a container label to identify a name of a drug product other than that dispensed.
Illinois: 225 Ill. Comp. Stat. 85/25, does not allow a container label to identify a name of a drug product other than that dispensed. No administrative code provision exists.
Michigan: Mich. Admin. Code r. 338.479 (3), allows that if a drug is dispensed that is not the brand prescribed, the purchaser shall be notified and the prescription label shall indicate both the name of the brand prescribed and the brand dispensed. If the dispensed drug does not have a brand name, the label shall indicate the name of the brand prescribed followed by the generic name of the drug dispensed or the reference “G.Eq.," “generic," or “generic equivalent" in the case of multi-ingredient products. This does not apply when the prescriber indicates, “do not label."
Minnesota: Minn R. 6800.3400, the label must contain the generic or trade name of a drug and its strength, except when specified by the prescriber to the contrary.
Summary of factual data and analytical methodologies
The proposed rule will conform a pharmacy practice rule to recent statutory changes brought about by
2005 Wisconsin Act 195, which created Wis. Stat. s.
450.11 (4g) (b). Section
Phar 7.02, Wis. Adm. Code, is therefore being amended for conformity with statute.
Analysis and supporting documents used to determine effect on small business
The board did not consult supporting documents other than
2005 Wisconsin Act 195. It is merely updating its rules based on the legislative change.
Section
227.137, Stats., requires an “agency" to prepare an economic impact report before submitting the proposed rule-making order to the Wisconsin Legislative Council. The Department of Regulation and Licensing is not included as an “agency" in this section.
Initial Regulatory Flexibility Analysis
These proposed rules will have no significant economic impact on a substantial number of small businesses, as defined in s.
227.114 (1), Stats. The Department's Regulatory Review Coordinator may be contacted by email at
larry.martin@drl.state.wi.us, or by calling (608) 266-8608.
Anticipated Costs Incurred by Private Sector
The department finds that this rule has no significant fiscal effect on the private sector.
Fiscal Estimate
The department estimates that the proposed rule will have no significant fiscal impact.
Agency Contact Person
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; telephone 608-266-0495; email
pamela.haack@drl.state.wi.us.
Text of Rule
SECTION 1. Phar 7.02 is amended to read:
Phar 7.02 Prescription label; name of drug or drug product dispensed. No prescription drug
product may be dispensed unless the prescription label discloses the brand name and strength, or the generic name, strength, and manufacturer or distributor of the drug or drug product dispensed unless the prescribing practitioner requests omission of the above information. The prescription label shall not contain the brand or generic name of any drug or drug product other than that actually dispensed. If a pharmacist, pursuant to a prescription order that specifies a drug product by its brand name, dispenses the drug product equivalent of the drug product specified in the prescription order, the prescription label may include both the generic name of the drug product equivalent and the brand name specified in the prescription order, unless the prescribing practitioner requests that the brand name be omitted from the label. If a brand name drug product is dispensed, the prescription label may contain both the brand name and the generic name of the drug product equivalent dispensed unless the prescribing practitioner requests that the generic name of the drug product equivalent be omitted from the label.
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 (3) (a),
(b),
(d) and
(e), Stats., and interpreting s.
450.02 (3) (a),
(b),.(d) and (e), Stats., the Pharmacy Examining Board will hold a public hearing at the time and place indicated below to consider an order to repeal Phar 7.015 (3) (d); and to create Phar 7.015 (2) (q), relating to the transfer of a prescription drug by a pharmacy technician.
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, 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 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.
