The department does not believe that the proposed rules will increase the effect on small businesses over that imposed by the Act.
An economic impact report has not been required pursuant to s.
227.137, Stats.
Initial regulatory flexibility analysis
Types of small businesses that will be affected by the rules:
The
2007 Wisconsin Act 197 affects governmental unit employees who administer and enforce regulations pertaining to design, installation and maintenance of POWTS by limiting the activities that such employees may undertake outside of their governmental employment relative to the design, installation and maintenance of POWTS. The proposed rules implement administrative forfeitures authorized under
2007 Wisconsin Act 197 for violations of these limitations. The proposed rules may to a degree affect POWTS design and/or contract businesses.
Reporting, bookkeeping and other procedures required for compliance with the rules:
There are no reporting or bookkeeping procedures required for compliance with the rules.
Types of professional skills necessary for compliance with the rules:
There are no new types of professional skills necessary for compliance with the rules.
Rules have a significant economic impact on small businesses?
No.
Small business regulatory coordinator
The small business regulatory coordinator for the Department of Commerce is Carol Dunn, who may be contacted at telephone (608) 267-0297, or Email at
carol.dunn@wisconsin.gov.
Environmental Impact
The Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Fiscal Estimate
State fiscal effect
None.
Local government fiscal effect
None.
Long-range fiscal effect
No long-range fiscal implications are anticipated.
Agency Contact
James Quast
Program Manager
Phone: (608) 266-9292
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., the Office of the Commissioner of Insurance will hold a public hearing to consider the adoption of rules revising Chapters
Ins 2,
5,
6,
26 and
28, Wis. Adm. Code, relating to licensing, prelicensing, and continuing education for insurance agents, and affecting small business.
Hearing Information
Date: April 13, 2009
Time: 10:00 a.m., or as soon thereafter as
the matter may be reached
Place: OCI, Room 227 (2nd Floor)
125 South Webster Street
Madison, WI
Copy of Proposed Rule
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the 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 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
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
Comments can be emailed to:
Robert Luck
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.
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
Statutes interpreted
Statutory authority
Explanation of agency authority
OCI has authority to set the initial licensing procedures and renewal requirements for insurance agents in the state of Wisconsin. These changes modify the existing requirements to conform to NAIC model requirements for agents in all states.
Related statutes or rules
None.
Plain language analysis
This rule changes the agent licensing requirements to conform to the NAIC model requirements for licensing and regulation of insurance agents. Three new lines of authority, variable life, crop and surety are created to bring Wisconsin in conformance with the lines in the NAIC model. For the variable line, there will be a 6 month transition period where an agent can solicit under either the current licensing requirements or the new ones. After that period, the agent would only be able to solicit under the new requirements.
These proposals will now allow online, self study and correspondence course credits to satisfy the existing prelicensing education requirements. This conforms Wisconsin to requirements under the NAIC model.
The NAIC model requires that the state of residence use fingerprint identification for crime checks. There are 16 States that now require fingerprinting of their resident insurance agent applicants including AK, AZ, CA, CT, FL, ID, MT, NJ, NV, PA, OH, OR, TN, UT, WA and WV. Wisconsin statutes permit the commissioner to require fingerprints for this purpose (see 628.04(1c), Stats.) Currently, resident agent applicant's criminal records are checked using only the Department of Justice, Crime Information Bureau (“CIB"). The CIB database contains no information about federal convictions or convictions in other states. The CIB matches are currently done using a name match and can result in inaccurate matches. A fingerprint match is the only method that the CIB match can be verified. Thus a person who applies for a Wisconsin insurance license could fail to disclose significant convictions under federal law, in other states or even Wisconsin and OCI would have no method to catch the falsehood. OCI would license the person not knowing that the public may be at significant risk. The FBI requires fingerprint in order to provide criminal records to the Commissioner. Other Wisconsin agencies currently require fingerprint crime checks with the FBI including those holding securities licenses, teachers, private detectives, and health professionals. The current testing vendor contracted with OCI holds the current statewide contract for fingerprinting, and provides those services for the licenses identified above. Pursuant to the current contract, the fingerprints collected would be used only to do an FBI and CIB crime check and then destroyed.
Another change proposed is to raise the application fee for the initial licensing of insurance agents. Currently, the fees OCI collects from insurance agent applicants are less than what OCI pays to have the licensing examination administered. As with most state contracts, the contract for the administration of the licensing examination was recently rebid with the new contract effective July 1, 2009. This new contract contains higher charges for examination and processing and makes the current fee structure even more inadequate. Unless the initial licensing fees are raised, OCI will not be able to administer the licensing program without incurring substantial debt.
A similar situation exists with the agent renewal fees. The cost of continuing regulation of agents after they are licensed has increased and the current fee is inadequate.
Comparison with federal regulations
None.
Comparison of rules in adjacent states
All states are modifying their procedures regarding continuing education, prelicensing education and lines of authority to conform to the NAIC models as Wisconsin is doing in this revision. There are 16 States that now require fingerprinting of their residents insurance agent applicants including AK, AZ, CA, CT, FL, ID, MT, NJ, NV, PA, OH, OR, TN, UT, WA and WV.
Fees do vary by state and are as follows for Wisconsin's 4 adjacent states. (Wisconsin includes the testing fee in the current and proposed fees.)
Illinois:
Resident Application: $180 plus testing fee of $103/line
Nonresident Application: $250
Resident Renewal: Biennial fee of $180/line of
authority
Nonresident Renewal: Biennial fee of $250
Iowa:
Resident Application: $50 plus testing fee of $71/line
Nonresident Application: $50
Resident Renewal: Biennial fee of $50
Nonresident Renewal: Biennial fee of $50
