LRB-0033/1
PJK:kmg:kaf
1995 - 1996 LEGISLATURE
January 31, 1995 - Introduced by Representatives Bell, Riley, Baldus, Carpenter,
Cullen, Notestein, Owens, Robson, Ryba, Wilder, Grobschmidt and R.
Young, cosponsored by Senators Burke, Risser and Buettner. Referred to
Committee on Insurance, Securities and Corporate Policy.
AB84,1,2
1An Act to create 424.21 of the statutes;
relating to: age restrictions for coverage
2under credit life insurance.
Analysis by the Legislative Reference Bureau
Credit life insurance is a type of insurance that may be purchased by a customer
in a consumer credit transaction to satisfy the debt if the customer is unable to make
the payments due to death. Administrative rules specify that such policies shall
contain either no age restrictions or age restrictions making debtors age 65 or over
at the time that the debt is incurred ineligible for such coverage. The rules provide
that, if the insurance is written in connection with an open-end credit plan, it may
provide for the cessation of the insurance or a reduction in the amount of insurance
upon attainment of not less than age 65. This bill raises the age for eligibility
restrictions on the basis of age and for cessation of insurance or reduction in amount
of insurance in open-end credit plans to 70.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB84, s. 1
3Section
1. 424.21 of the statutes is created to read:
AB84,1,7
4424.21 Limits on age restrictions. (1) Notwithstanding any administrative
5rule relating to coverage or eligibility restrictions on the basis of age, coverage under
6a credit life insurance policy or group certificate may not be denied on the basis of
7any age under 70.
AB84,2,4
8(2) Notwithstanding any administrative rule relating to coverage or eligibility
9restrictions on the basis of age, credit life insurance coverage that is written in
1connection with an open-end credit plan may not be denied on the basis of any age
2under 70, and a policy or group certificate of such insurance may not provide for the
3cessation of the insurance or a reduction in the amount of insurance before
4attainment of age 70.
AB84,2,7
6(1) This act first applies to credit life insurance policies or certificates that are
7issued on the effective date of this subsection.
