AB542,27,16 12(14) Article XIV - Withdrawal, Default, and Termination. (a) Once effective,
13the compact shall continue in force and remain binding upon each and every
14compacting state; provided, that a compacting state may withdraw from the compact
15("withdrawing state") by enacting a statute specifically repealing the statute that
16enacted the compact into law.
AB542,27,2117 (b) The effective date of withdrawal is the effective date of the repealing statute.
18The withdrawal shall not apply to any product filings approved or self-certified, or
19any advertisement of such products, on the date the repealing statute becomes
20effective, except by mutual agreement of the commission and the withdrawing state,
21unless the approval is rescinded by the withdrawing state as provided in par. (e).
AB542,27,2422 (c) The commissioner of the withdrawing state shall immediately notify the
23management committee in writing upon the introduction of legislation repealing this
24compact in the withdrawing state.
AB542,28,2
1(d) The commission shall notify the other compacting states of the introduction
2of such legislation within 10 days after its receipt of notice thereof.
AB542,28,123 (e) The withdrawing state is responsible for all obligations, duties, and
4liabilities incurred through the effective date of withdrawal, including any
5obligations, the performance of which extend beyond the effective date of
6withdrawal, except to the extent those obligations may have been released or
7relinquished by mutual agreement of the commission and the withdrawing state.
8The commission's approval of products and advertisement prior to the effective date
9of withdrawal shall continue to be effective and be given full force and effect in the
10withdrawing state, unless formally rescinded by the withdrawing state in the same
11manner as provided by the laws of the withdrawing state for the prospective
12disapproval of products or advertisement previously approved under state law.
AB542,28,1413 (f) Reinstatement following withdrawal of any compacting state shall occur
14upon the effective date of the withdrawing state reenacting the compact.
AB542,29,415 (g) If the commission determines that any compacting state has at any time
16defaulted ("defaulting state") in the performance of any of its obligations or
17responsibilities under this compact, the bylaws, or duly promulgated rules or
18operating procedures, then, after notice and hearing as set forth in the bylaws, all
19rights, privileges, and benefits conferred by this compact on the defaulting state
20shall be suspended from the effective date of default as fixed by the commission. The
21grounds for default include, but are not limited to, failure of a compacting state to
22perform its obligations or responsibilities and any other grounds designated in
23commission rules. The commission shall immediately notify the defaulting state in
24writing of the defaulting state's suspension pending a cure of the default. The
25commission shall stipulate the conditions and the time period within which the

1defaulting state must cure its default. If the defaulting state fails to cure the default
2within the time period specified by the commission, the defaulting state shall be
3terminated from the compact and all rights, privileges, and benefits conferred by this
4compact shall be terminated from the effective date of termination.
AB542,29,85 (h) Product approvals by the commission or product self-certifications, or any
6advertisement in connection with such product, that are in force on the effective date
7of termination shall remain in force in the defaulting state in the same manner as
8if the defaulting state had withdrawn voluntarily under par. (a).
AB542,29,109 (i) Reinstatement following termination of any compacting state requires a
10reenactment of the compact.
AB542,29,1311 (j) The compact dissolves effective upon the date of the withdrawal or default
12of the compacting state that reduces membership in the compact to one compacting
13state.
AB542,29,1714 (k) Upon the dissolution of this compact, the compact becomes null and void and
15shall be of no further force or effect, and the business and affairs of the commission
16shall be wound up and any surplus funds shall be distributed in accordance with the
17bylaws.
AB542,29,20 18(15) Article XV - Severability and Construction. (a) The provisions of this
19compact shall be severable; and if any phrase, clause, sentence, or provision is
20deemed unenforceable, the remaining provisions of the compact shall be enforceable.
AB542,29,2221 (b) The provisions of this compact shall be liberally construed to effectuate its
22purposes.
AB542,29,25 23(16) Article XVI - Binding Effect of Compact and Other Laws. (a) Nothing
24herein prevents the enforcement of any other law of a compacting state, except as
25provided in par. (b).
AB542,30,8
1(b) For any product approved by or certified to the commission, the rules,
2uniform standards, and any other requirements of the commission shall constitute
3the exclusive provisions applicable to the content, approval, and certification of such
4products. For advertisement that is subject to the commission's authority, any rule,
5uniform standard, or other requirement of the commission that governs the content
6of the advertisement shall constitute the exclusive provision that a commissioner
7may apply to the content of the advertisement. Notwithstanding the foregoing, no
8action taken by the commission shall abrogate or restrict any of the following:
AB542,30,99 1. The access of any person to state courts.
AB542,30,1110 2. Remedies available under state law related to breach of contract, tort, or
11other laws not specifically directed to the content of the product.
AB542,30,1212 3. State law relating to the construction of insurance contracts.
AB542,30,1513 4. The authority of the secretary of agriculture, trade and consumer protection
14or the attorney general of the state, including, but not limited to, maintaining any
15actions or proceedings, as authorized by law.
AB542,30,1716 (c) All insurance products filed with individual states shall be subject to the
17laws of those states.
AB542,30,2418 (d) All lawful actions of the commission, including all rules and operating
19procedures promulgated by the commission, are binding upon the compacting states.
20All agreements between the commission and the compacting states are binding in
21accordance with their terms. Upon the request of a party to a conflict over the
22meaning or interpretation of commission actions, and upon a majority vote of the
23compacting states, the commission may issue advisory opinions regarding the
24meaning or interpretation in dispute.
AB542,31,7
1(e) In the event any provision of this compact exceeds the constitutional limits
2imposed on the legislature of any compacting state, the obligations, duties, powers,
3or jurisdiction sought to be conferred by that provision upon the commission shall be
4ineffective as to that compacting state, and such obligations, duties, powers, or
5jurisdiction shall remain in the compacting state and shall be exercised by the agency
6thereof to which such obligations, duties, powers, or jurisdiction are delegated by law
7in effect at the time this compact becomes effective.
AB542, s. 5 8Section 5. 605.03 (1) (a) of the statutes is amended to read:
AB542,31,129 605.03 (1) (a) Mandatory coverage. The property fund shall provide protection
10against fire and extended coverage perils. The coverage shall be at least as favorable
11as that customarily provided by policies approved by filed with the commissioner for
12the use of private insurers in insuring comparable property.
AB542, s. 6 13Section 6. 607.02 (1) of the statutes is amended to read:
AB542,31,1914 607.02 (1) Types of policies permitted. Subject to sub. (2), the life fund may
15issue to any resident of the state any kind of life insurance with any riders or
16endorsements thereto that would be filed with the commissioner would approve for
17issuance by private insurers authorized to do a life insurance business in this state.
18Coverages may be combined and granted in the same policy by the life fund to the
19same extent as by a private life insurer.
AB542, s. 7 20Section 7. 612.51 (1) of the statutes is repealed.
AB542, s. 8 21Section 8. 628.347 (title) of the statutes is amended to read:
AB542,31,22 22628.347 (title) Suitability of annuity sales to senior consumers.
AB542, s. 9 23Section 9. 628.347 (1) (b) of the statutes is amended to read:
AB542,32,224 628.347 (1) (b) "Recommendation" means advice provided by an insurance
25intermediary, or an insurer if no intermediary is involved, to an individual senior

1consumer that results in the purchase or exchange of an annuity in accordance with
2that advice.
AB542, s. 10 3Section 10. 628.347 (1) (c) of the statutes is repealed.
AB542, s. 11 4Section 11. 628.347 (2) (a) of the statutes is amended to read:
AB542,32,115 628.347 (2) (a) Except as provided in par. (c), an insurance intermediary, or
6insurer if no intermediary is involved, may not recommend to a senior consumer the
7purchase or exchange of an annuity if the recommendation results in an insurance
8transaction or series of insurance transactions unless the intermediary or insurer
9has reasonable grounds to believe that the recommendation is suitable for the senior
10consumer on the basis of facts disclosed by the senior consumer as to his or her
11investments, other insurance products, and financial situation and needs.
AB542, s. 12 12Section 12. 628.347 (2) (b) 1. of the statutes is amended to read:
AB542,32,1313 628.347 (2) (b) 1. The senior consumer's financial status.
AB542, s. 13 14Section 13. 628.347 (2) (b) 2. of the statutes is amended to read:
AB542,32,1515 628.347 (2) (b) 2. The senior consumer's tax status.
AB542, s. 14 16Section 14. 628.347 (2) (b) 3. of the statutes is amended to read:
AB542,32,1717 628.347 (2) (b) 3. The senior consumer's investment objectives.
AB542, s. 15 18Section 15. 628.347 (2) (b) 4. of the statutes is amended to read:
AB542,32,2019 628.347 (2) (b) 4. Any other information that is reasonably appropriate for
20determining the suitability of a recommendation to the senior consumer.
AB542, s. 16 21Section 16. 628.347 (2) (c) (intro.) of the statutes is amended to read:
AB542,32,2422 628.347 (2) (c) (intro.) An insurance intermediary, or insurer if no intermediary
23is involved, has no obligation under par. (a) to a senior consumer related to a
24recommendation if the senior consumer does any of the following:
AB542, s. 17 25Section 17. 628.347 (3) (f) 2. of the statutes is amended to read:
AB542,33,3
1628.347 (3) (f) 2. Include in its system of supervision an insurance
2intermediary's recommendations made to senior consumers of products other than
3annuities offered by the insurer, general agent, or independent agency.
AB542, s. 18 4Section 18. 628.347 (5) (a) of the statutes is amended to read:
AB542,33,75 628.347 (5) (a) Order an insurer to take reasonably appropriate corrective
6action for any senior consumer harmed by a violation of this section by the insurer
7or the insurer's insurance intermediary.
AB542, s. 19 8Section 19. 628.347 (5) (b) of the statutes is amended to read:
AB542,33,119 628.347 (5) (b) Order an insurance intermediary to take reasonably
10appropriate corrective action for any senior consumer harmed by a violation of this
11section by the insurance intermediary.
AB542, s. 20 12Section 20. 628.347 (5) (c) of the statutes is amended to read:
AB542,33,1613 628.347 (5) (c) Order a general agent or independent agency that employs or
14contracts with an insurance intermediary to sell, or solicit the sale of, annuities to
15senior consumers to take reasonably appropriate corrective action for any senior
16consumer harmed by a violation of this section by the insurance intermediary.
AB542, s. 21 17Section 21. 628.347 (6) (b) of the statutes is amended to read:
AB542,33,2118 628.347 (6) (b) A penalty under par. (a) for a violation of sub. (2) (a), (b), or (d),
19including a forfeiture, may be reduced or eliminated to the extent provided by rule
20of the commissioner if corrective action is taken for the senior consumer promptly
21after the violation is discovered.
AB542, s. 22 22Section 22. 628.347 (6) (c) of the statutes is amended to read:
AB542,34,223 628.347 (6) (c) The commissioner may promulgate rules related to the
24reduction or elimination of penalties for violations of this section on the basis of

1prompt action taken to correct any harm caused to senior consumers by the
2violations.
AB542, s. 23 3Section 23. 628.347 (7) of the statutes is amended to read:
AB542,34,114 628.347 (7) Record keeping. An insurer and an insurance intermediary,
5including a general agent and an independent agency, shall maintain, or be able to
6make available to the commissioner, records of the information collected from a
7senior consumer and other information used in making a recommendation that was
8the basis for an insurance transaction for 6 years after the insurance transaction is
9completed by the insurer, except as otherwise permitted by the commissioner by rule.
10An insurer may, but is not required to, maintain records on behalf of an insurance
11intermediary, including a general agent and an independent agency.
AB542, s. 24 12Section 24. 628.347 (8) (a) of the statutes is amended to read:
AB542,34,1413 628.347 (8) (a) Direct response solicitations in which no recommendation is
14made based on information collected from the senior consumer.
AB542, s. 25 15Section 25. 631.01 (4m) of the statutes is amended to read:
AB542,34,1916 631.01 (4m) Rustproofing warranties insurance. An insurer issuing a policy
17of insurance to cover a warranty, as defined in s. 100.205 (1) (g), shall comply with
18s. 632.18 and the policy shall be on a form approved by the commissioner under s.
19631.20
.
AB542, s. 26 20Section 26. 631.20 (1) (a) of the statutes is amended to read:
AB542,35,221 631.20 (1) (a) No form subject to s. 631.01 (1), except as exempted under par.
22(c), sub. (1g), or
s. 631.01 (2) to (5) or by rule under par. (b), may be used unless it has
23been filed with and approved by the commissioner and unless the insurer certifies
24that the form complies with chs. 600 to 655 and rules promulgated under chs. 600
25to 655. It is deemed approved if it is not disapproved within 30 days after filing, or

1within a 30-day extension of that period ordered by the commissioner prior to the
2expiration of the first 30 days.
AB542, s. 27 3Section 27. 631.20 (1) (c) of the statutes is created to read:
AB542,35,64 631.20 (1) (c) Subject to sub. (1m), a form first used and not already filed under
5par. (a) on or after the effective date of this paragraph .... [revisor inserts date], is
6exempt from par. (a) except for any of the following:
AB542,35,77 1. A form subject to s. 655.24 (1).
AB542,35,88 2. A form for a worker's compensation policy.
AB542,35,99 3. A form for a Medicare replacement policy or a Medicare supplement policy.
AB542,35,1110 4. A form for a long-term care insurance policy, including a form for a nursing
11home or home health care policy.
AB542,35,1212 5. A form filed under ch. 149.
AB542,35,1613 6. A form issued by an insurer ordered by the commissioner under s. 601.41 (4)
14to file forms under par. (a). The commissioner may require an insurer to file forms
15under par. (a) to secure compliance with the law, including if the commissioner
16determines that the insurer violated sub. (1m).
AB542,35,1917 7. A form that includes an appraisal or arbitration provision not specifically
18authorized by rule. The entire form, including the appraisal or arbitration provision,
19is subject to par. (a).
AB542,35,2020 8. A form that contains a clause subject to s. 631.21, but only as to the clause.
AB542,35,2121 9. A form subject to s. 618.41 (6m).
AB542,35,2222 10. A warranty contract form.
AB542,35,2423 11. A form required to be filed under par. (a) by a rule promulgated by the
24commissioner.
AB542, s. 28 25Section 28. 631.20 (1g) of the statutes is created to read:
AB542,36,5
1631.20 (1g) Exempt if approved by commission. A form for a product, as defined
2in s. 601.58 (2) (k), that is approved by or self-certified to, and not disapproved by,
3the Interstate Insurance Product Regulation Commission is exempt from subs. (1)
4(a) and (1m) (a), unless otherwise provided by a rule promulgated by the
5commissioner under s. 601.58.
AB542, s. 29 6Section 29. 631.20 (1m) of the statutes is created to read:
AB542,36,117 631.20 (1m) Use of certain forms. (a) Except as exempted under sub. (1g) or
8s. 631.01 (2) to (5) or by a rule promulgated by the commissioner, an insurer may not,
9on or after the effective date of this paragraph .... [revisor inserts date], use a form
10that is exempt from sub. (1) (a) under sub. (1) (c) unless the insurer does all of the
11following:
AB542,36,1212 1. Files the form with the commissioner 30 days before its use.
AB542,36,1413 2. Files the form in the manner and format, and with the attachments,
14prescribed by the commissioner.
AB542,36,1715 3. Certifies as required under par. (b) that the form complies with chs. 600 to
16655 and rules promulgated under chs. 600 to 655. The commissioner may require
17an insurer to include specific compliance certifications.
AB542,36,2218 (b) An insurer shall provide the certification under par. (a) 3. in the form
19prescribed by the commissioner. The certification shall be executed by a person who
20is an officer of the insurer and who is responsible for the form that is the subject of
21the filing. No insurer may file, and no insurer's officer may execute, a false
22certification.
AB542, s. 30 23Section 30. 631.20 (2) (intro.) of the statutes is amended to read:
AB542,36,2524 631.20 (2) Grounds for disapproval. (intro.) The commissioner may
25disapprove a form under sub. (1) (a) or (3) upon a finding:
AB542, s. 31
1Section 31. 631.20 (3) of the statutes is amended to read:
AB542,37,72 631.20 (3) Subsequent disapproval. Whenever the commissioner finds, after
3a hearing, that a form approved or deemed to be approved under sub. (1) (a) would,
4a form filed under sub. (1m), or a form subject to subsequent disapproval under s.
5601.58 (14) should
be disapproved under sub. (2) if newly filed, the commissioner
6may order that on or before a date not less than 30 nor more than 90 days after the
7order the use of the form shall be discontinued or appropriate changes shall be made.
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