SB492: Bill Text

SB492,19,8 (17) A service contract shall be subject to s. 631.85.

SB492,19,12 (18) In the event of a total loss of property covered by a service contract that is not covered by a replacement of the property pursuant to the terms of the contract, a service contract holder shall be entitled to cancel the service contract and receive a pro rata refund of any unearned provider fee, less any claims paid.

SB492,19,18 616.58 Prohibited acts. (1) (a) A provider shall not use in its name used in this state the words "insurance," "casualty," "surety," or "mutual" or any other words descriptive of the insurance, casualty, or surety business; or a name deceptively similar to the name or description of any insurance or surety corporation, or to the name of any other provider. The word "guaranty" or a similar word may be used by a provider.

SB492,19,21 (b) Paragraph (a) does not apply to a provider that was using any language prohibited under par. (a) in its name used in this state prior to the effective date of this paragraph .... [LRB inserts date].

SB492,20,7 (2) (a) No provider, administrator, service contract seller, or provider's representative may make or cause to be made any communication relating to a service contract, the service contract business, insurance business, any insurer, any administrator, or any provider that contains false or misleading information, including information that is misleading due to incompleteness. Filing a report and, with intent to deceive a person examining it, making a false entry in a record or intentionally refraining from making a proper entry, are "communications" within the meaning of this paragraph. No provider or administrator may use any business name, slogan, emblem, or related device that is misleading or likely to cause the provider or administrator to be mistaken for another provider or administrator already in business.

SB492,20,12 (b) If an administrator or representative of a provider distributes cards or documents, exhibits a sign, or publishes an advertisement that violates par. (a), having reference to a particular provider that the administrator or representative represents, such violation creates a rebuttable presumption that the violation was also committed by the provider.

SB492,20,18 (3) A person, including a bank, savings and loan association, lending institution, manufacturer, or seller of any product, shall not require the purchase of a service contract as a condition of a loan or a condition for the sale of any property, except that a person buying or selling a home may condition the purchase or sale of the home on the seller's or buyer's procurement of a service contract that covers the home.

SB492,20,22 (4) A motor vehicle service contract provider or its representative shall not, directly or indirectly, represent in any manner, whether by written solicitation or telemarketing, a false, deceptive, or misleading statement with respect to any of the following:

SB492,20,23 (a) The provider's affiliation with a motor vehicle manufacturer.

SB492,20,25 (b) The provider's possession of information regarding a motor vehicle owner's current motor vehicle manufacturer's original equipment warranty.

SB492,21,2 (c) The expiration of a motor vehicle owner's current motor vehicle manufacturer's original equipment warranty.

SB492,21,6 (d) A requirement that a motor vehicle owner purchase a new motor vehicle service contract with the provider in order to maintain coverage under the motor vehicle owner's current motor vehicle service contract or manufacturer's original equipment warranty.

SB492,21,9 616.60 Record-keeping requirements. (1) (a) A provider shall keep accurate accounts, books, and records concerning transactions regulated under this subchapter.

SB492,21,10 (b) A provider's accounts, books, and records shall include all of the following:

SB492,21,11 1. Copies of each type of service contract sold.

SB492,21,13 2. The name and address of each service contract holder that has furnished such information to the provider.

SB492,21,15 3. A list of the locations where service contracts are marketed, sold, or offered for sale in this state.

SB492,21,17 4. Written claims files that shall contain at least the dates, descriptions, and amounts paid or denied for claims related to the service contracts.

SB492,21,19 5. The effective date, expiration date, name of the seller, and provider fee paid for each service contract sold in this state.

SB492,21,22 (c) Except as provided in sub. (2), a provider shall retain all records required to be maintained under this subsection for a service contract for at least one year after the period of coverage specified in the contract has expired.

SB492,22,2 (d) The records required under this subsection may be, but are not required to be, maintained on a computer disk or other record-keeping technology. If the records are maintained in other than hard copy, the records shall be capable of duplication to electronic copy or legible hard copy at the request of the commissioner.

SB492,22,5 (2) A provider discontinuing business in this state shall maintain its records until it furnishes the commissioner satisfactory proof that it has discharged all obligations to service contract holders in this state.

SB492,22,12 616.62 Enforcement. (1) The commissioner may conduct examinations of providers, administrators, servicer contract sellers, or other persons under ss. 601.43 to 601.45 to enforce the provisions of this subchapter and protect service contract holders in this state. Upon request of the commissioner, a provider shall make all accounts, books, and records concerning service contracts sold by or on behalf of the provider available to the commissioner which are necessary to enable the commissioner to reasonably determine compliance with this subchapter.

SB492,22,17 (2) The commissioner may take any action under ss. 601.41 and 601.61 to 601.73 that is necessary or appropriate to enforce the provisions of this subchapter and the commissioner's rules and orders and to protect service contract holders in this state. The commissioner may subject a provider to any reporting and replying requirement under s. 601.42.

SB492, s. 4 Section 4. Subchapter II (title) of chapter 616 [precedes 616.71] of the statutes is renumbered subchapter IV (title) of chapter 616 [precedes 616.71] of the statutes.

SB492, s. 5 Section 5. 628.02 (1) (b) 9. of the statutes is created to read:

SB492,22,24 628.02 (1) (b) 9. A person whose activities are limited to marketing, selling, or offering for sale a warranty contract, as defined in s. Ins 15.01 (4) (d), Wis. Adm. Code, maintenance agreement, as defined in s. 616.50 (5), or service contract, as defined in s. 616.50 (11).

SB492, s. 6 Section 6. Initial applicability.

SB492,23,3 (1) Service contracts. The treatment of subchapter III of chapter 616 of the statutes first applies to service contracts that are issued, sold, or offered for sale, on the effective date of this subsection.

SB492,23,6 (2) Insurance marketing intermediaries. The treatment of section 628.02 (1) (b) 9. of the statutes first applies to activities that take place on the effective date of this subsection.

SB492,23,7 (End)