632.56(1)
(1) Evidence of insurability. A provision setting forth any conditions under which the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as a condition to part or all of that coverage.
632.56(2)
(2) Misstatement of age. A provision specifying that an equitable adjustment of premiums or of benefits or of both will be made if the age of an insured person has been misstated and clearly stating the method of adjustment.
632.56(3)
(3) Facility of payment. A provision that any sum becoming due by reason of the death of an insured person is payable to the beneficiary designated by the insured person, subject to policy provisions if there is no designated beneficiary, and to any right reserved by the insurer in the policy and set forth in the certificate to pay at its option a part of the sum not exceeding $1,000 to any person appearing to the insurer to be equitably entitled thereto by reason of having incurred funeral or other expenses incident to the last illness or death of the insured person. This subsection does not apply to a policy issued to a creditor to insure his or her debtors.
632.56(4)
(4) Nonforfeiture. If it is not term insurance, equitable nonforfeiture provisions, but they need not be the same provisions as are in individual policies.
632.56(5)
(5) Grace period. A provision that the policyholder is entitled to a grace period of not less than 31 days for the payment of any premium due except the first. During the grace period the death benefit coverage shall continue in force, unless the policyholder gives the insurer advance written notice of discontinuance in accordance with the terms of the policy. The policy may provide that the policyholder shall be liable to the insurer for the payment of a proportional premium for the time the policy was in force during the grace period.
632.56 History
History: 1975 c. 375,
421;
1979 c. 110 s.
60 (11).
632.57
632.57
Conversion option in group and franchise life insurance. 632.57(1)(1)
Scope of application. This section applies to all group life insurance policies other than credit life insurance policies and applies to franchise life insurance policies providing term insurance renewable only while the insured is a member of the franchise unit.
632.57(2)
(2) Conversion right upon loss of eligibility. 632.57(2)(a)(a) If the insurance, or any portion of it, on a person insured under a policy covered by this section ceases because of termination of employment or of membership in the class or franchise unit eligible for coverage, the insurer shall, upon written application and payment of the first premium within 31 days after the termination, issue to the person, without evidence of insurability, an individual policy providing benefits reasonably similar in type and amount to those of the group or franchise insurance, but which need not include disability or other supplementary benefits.
632.57(3)(a)(a)
Form of policy. The individual policy shall, at the option of the applicant, be on any form then customarily issued by the insurer, except term insurance, at the age and for the amount applied for.
632.57(3)(b)
(b)
Amount of coverage. The individual policy shall, at the option of the applicant, be in an amount as large as in the group or franchise life insurance which ceases, less any amount of insurance which has then matured as an endowment payable to the insured person, whether in one sum or in instalments or in the form of an annuity.
632.57(3)(c)
(c)
Premium rates. The premium on the individual policy shall be at the customary rate then applied generally by the insurer to policies in the form and amount of the individual policy, to the class of risk to which the person then belongs without applying individual underwriting considerations, except as to occupation or avocation, and to the person's age on the effective date of the individual policy.
632.57(4)
(4) Conversion upon termination of group or franchise insurance. If the group or franchise policy terminates or is amended so as to terminate the insurance of any class of insured persons, the insurer shall, on written application and payment of the first premium within 31 days after the termination, issue to any person whose insurance is thus terminated or amended, after having been in effect for at least 5 years, an individual policy on the same conditions as in
subs. (2) and
(3), less the amount of any other group or franchise insurance made available to the person within 31 days thereafter as a consequence of the termination or amendment. The group policy may provide that the maximum amount of insurance available under this subsection is an amount not less than $2,000 without a conversion charge and an additional amount not less than $3,000 by paying the insurer's usual conversion charge on the additional amount.
632.57(5)
(5) Extension of claims under group or franchise policy. If a person insured under the group or franchise policy dies during the conversion period under
sub. (2) to
(4) and before an individual policy is effective, the amount of life insurance which the person would have been entitled to have issued as an individual policy shall be payable as a claim under the group or franchise policy, whether or not the person has applied for the individual policy or paid the first premium.
632.57 History
History: 1975 c. 375,
421.
632.60
632.60
Limitation on credit life insurance. Nothing in
chs. 600 to
646 authorizes licensees under
s. 138.09 to require or accept insurance not permitted under
s. 138.09 (7) (h).
632.60 History
History: 1975 c. 375;
1979 c. 89.
632.62
632.62
Participating and nonparticipating policies. 632.62(1)(a)(a)
Stock insurers. A stock insurer may issue both participating and nonparticipating life insurance policies and annuity contracts, subject to this section.
632.62(1)(b)
(b)
Fraternals and mutual insurers. A fraternal or mutual insurer issuing life insurance policies may issue only participating policies, except for the following situations in which it may issue nonparticipating policies:
632.62(1)(b)1.
1. Paid-up, temporary, pure endowment insurance and annuity settlements provided in exchange for lapsed, surrendered or matured policies;
632.62(1)(b)2.
2. Annuities beginning within one year of the making of the contract; and
632.62(1)(b)3.
3. Such term insurance policies as the commissioner may exempt by rule.
632.62(2)
(2) Participation. Every participating policy shall by its terms give its holder full right to participate annually in the part of the surplus accumulations from the participating business of the insurer that are to be distributed.
632.62(3)
(3) Accounting. Every insurer issuing both participating and nonparticipating policies shall separately account for the 2 classes of business and no part of the amounts accumulated or credited to the participating class may be voluntarily transferred to the nonparticipating class.
632.62(4)(a)(a)
Deferred dividends. No life insurance policy or certificate may be issued in which the accounting, apportionment and distribution of surplus is deferred for a period longer than one year.
632.62(4)(b)
(b)
Payment. Every insurer doing a participating business shall annually ascertain the surplus over required reserves and other liabilities. After setting aside such contingency reserves as may be considered necessary and be lawful, such reasonable nondistributable surplus as is needed to permit orderly growth, making provision for the payment of reasonable dividends upon capital stock and such sums as are required by prior contracts to be held on account of deferred dividend policies, the remaining surplus shall be equitably apportioned and returned as a dividend to the participating policyholders or certificate holders entitled to share therein. A dividend may be conditioned on the payment of the succeeding year's premium only on the first and second anniversaries of the policy.
632.62 History
History: 1975 c. 373,
375,
422;
1979 c. 102.
632.64
632.64
Certification of disability. Insurers doing a life insurance business in this state shall afford equal weight to a certification of disability signed by a physician with respect to matters within the scope of the physician's professional license and to a certification of disability signed by a chiropractor with respect to matters within the scope of the chiropractor's professional license for the purpose of insurance policies they issue. This section does not require an insurer to treat a certificate of disability as conclusive evidence of disability.
632.64 History
History: 1981 c. 55.
632.66
632.66
Annuity contracts without life contingencies. The commissioner may by rule authorize insurers to issue annuity contracts which are without life contingencies. If the commissioner authorizes insurers to issue annuity contracts without life contingencies, the commissioner shall promulgate rules regulating those contracts.
632.66 History
History: 1987 a. 247.
632.67
632.67
Effect of power of attorney for health care. Executing a power of attorney for health care under
ch. 155 may not be used to impair in any manner the procurement of a life insurance policy or to modify the terms of an existing life insurance policy. A life insurance policy may not be impaired or invalidated in any manner by the exercise of a health care decision by a health care agent on behalf of a person whose life is insured under the policy and who has authorized the health care agent under
ch. 155.
632.67 History
History: 1989 a. 200.
632.68
632.68
Regulation of viatical settlement contracts. 632.68(1)(a)
(a) "Catastrophic or life-threatening illness or condition" includes AIDS, as defined in
s. 49.486 (1) (a) [49.686 (1) (a)], and HIV infection, as defined in
s. 49.486 (1) (d) [49.686 (1) (d)].
632.68 Note
NOTE: The bracketed language indicates the correct cross-references. Section 49.486 was renumbered by
1995 Wis. Act 27.
632.68(1)(b)
(b) "Viatical settlement" means payment to the policyholder of a life insurance policy, or to the certificate holder of a group life insurance certificate, insuring the life of a person who has a catastrophic or life-threatening illness or condition, in an amount that is less than the expected death benefit under the policy or certificate, for assigning, selling, devising or otherwise transferring the ownership of or the death benefit under the policy or certificate to the person paying the viatical settlement.
632.68(1)(c)
(c) "Viatical settlement broker" means a person that, for a fee, commission or other valuable consideration, offers or attempts to negotiate settlements between a life insurance policyholder or certificate holder and one or more viatical settlement providers. The term does not include a viatical settlement agent, as defined by the commissioner by rule under
sub. (11) (b) 4., or an attorney, accountant or financial planner retained by a policyholder or certificate holder to represent the policyholder or certificate holder.
632.68(1)(d)
(d) "Viatical settlement contract" means a written agreement providing for and establishing the terms of a viatical settlement.
632.68(1)(e)
(e) "Viatical settlement provider" means a person that pays a viatical settlement. The term does not include any of the following:
632.68(1)(e)1.
1. A financial institution, as defined in
s. 705.01 (3), that takes an assignment of a life insurance policy or certificate as collateral for a loan.
632.68(1)(e)2.
2. The issuer of a life insurance policy or certificate providing accelerated benefits under the policy or certificate.
632.68(1)(e)3.
3. A natural person who enters into no more than one agreement in a year for the transfer of the ownership of or the death benefit under a life insurance policy or a group life insurance certificate for an amount that is less than the expected death benefit under the policy or certificate.
632.68(1)(e)4.
4. A natural person who enters into an agreement for the transfer of the ownership of or the death benefit under a life insurance policy or a group life insurance certificate for an amount that is less than the expected death benefit under the policy or certificate and who is a member of the immediate family, as defined in
s. 23.33 (1) (h), of the life insurance policyholder or certificate holder.
632.68(2)
(2) Viatical settlement provider license requirement. 632.68(2)(a)(a) Except as provided in
sub. (1) (e) 3. and
4., no person may act as a viatical settlement provider, solicit or pay viatical settlements or enter into a viatical settlement contract with the policyholder of the life insurance policy, or the certificate holder of the group life insurance certificate, that is the subject of a viatical settlement contract unless the person obtains and has in effect a viatical settlement provider license under this subsection.
632.68(2)(b)
(b) A person may apply to the commissioner for a viatical settlement provider license on a form prescribed by the commissioner for that purpose. The fee specified in
s. 601.31 (1) (mm) shall accompany the application. After any investigation of the applicant that the commissioner determines is sufficient, the commissioner shall issue a viatical settlement provider license to an applicant that satisfies all of the following:
632.68(2)(b)4.
4. Fully discloses the identity of all stockholders, partners, officers and employes, if applicable.
632.68(2)(b)5.
5. If a corporation, is incorporated under the laws of this state or is authorized to transact business in this state.
632.68(2)(b)6.
6. Shows to the satisfaction of the commissioner all of the following:
632.68(2)(b)6.a.
a. If a natural person, that the applicant is competent and trustworthy, or, if a partnership, corporation or limited liability company, that all partners, members, directors or principal officers or persons in fact having comparable powers are competent and trustworthy.
632.68(2)(b)6.b.
b. If a natural person, that the applicant has the intent in good faith to do business as a viatical settlement provider, or, if a partnership, corporation or limited liability company, that the applicant has that intent and has included that purpose in the articles of association, incorporation or organization.
632.68(2)(b)6.c.
c. That the applicant has a good business reputation and, if a natural person, has had experience, training or education that qualifies the applicant to be a viatical settlement provider, or, if a partnership, corporation or limited liability company, that all partners, members, directors or principal officers or persons in fact having comparable powers have had experience, training or education that qualifies the applicant to be a viatical settlement provider.
632.68(2)(b)7.
7. If a nonresident, files with the commissioner a written designation of the applicant's agent in this state for service of process or executes in a form acceptable to the commissioner an agreement to be subject to the jurisdiction of the commissioner and the courts of this state on any matter related to the applicant's viatical settlement activities in this state, on the basis of service of process under
ss. 601.72 and
601.73.
632.68(2)(c)
(c) If the commissioner denies an application for a license under this subsection, the applicant may, within 20 days after receiving notice of the denial, demand a hearing. The demand shall be in writing and shall be served on the commissioner by delivering a copy to the commissioner or by leaving it at the commissioner's office. The commissioner shall hold a hearing not less than 10 days nor more than 30 days after service of the demand. Failure to demand a hearing within the required time constitutes waiver of a hearing.
632.68(2)(d)
(d) A license issued under this subsection to a partnership, corporation or limited liability company authorizes all partners, members, directors or principal officers or persons in fact having comparable powers to act as a viatical settlement provider under the license. All persons acquiring authority under this paragraph to act under the license shall be named in the application and any supplements to the application.
632.68(2)(e)
(e) Except as provided in
sub. (3), a license issued under this subsection shall be renewed annually on the anniversary date upon payment of the fee specified in
s. 601.31 (1) (mp).
632.68(3)
(3) Viatical settlement provider license revocation. The commissioner may revoke, suspend or refuse to renew a viatical settlement provider license if, after a hearing, the commissioner finds any of the following:
632.68(3)(a)
(a) That the licensee misrepresented information in the application.
632.68(3)(b)
(b) That the licensee has engaged in fraudulent or dishonest practices or is otherwise shown to be untrustworthy or incompetent to act as a viatical settlement provider.
632.68(3)(c)
(c) That the licensee has failed to meet the minimum settlement payment requirements under
sub. (9) (c) or has demonstrated a pattern of making unreasonable payments to policyholders or certificate holders.
632.68(3)(d)
(d) Notwithstanding
ss. 111.321,
111.322 and
111.335, that the licensee has been convicted of a misdemeanor or felony involving fraud, deceit or misrepresentation.
632.68(3)(e)
(e) That the licensee has violated any provision of this section.
632.68(4)
(4) Viatical settlement broker license and other requirements. 632.68(4)(a)(a) Except as provided in
sub. (1) (c), no person may act as a viatical settlement broker unless the person obtains and has in effect a viatical settlement broker license under this subsection.
632.68(4)(b)
(b) A person may apply to the commissioner for a viatical settlement broker license on a form prescribed by the commissioner for that purpose. The fee specified in
s. 601.31 (1) (mr) shall accompany the application.
632.68(4)(c)
(c) Except as provided in
sub. (5), a license issued under this subsection shall be renewed annually on the anniversary date upon payment of the fee specified in
s. 601.31 (1) (ms).
632.68(4)(d)
(d) A licensee under this subsection shall acquire and maintain professional liability insurance in an amount that is satisfactory to the commissioner.
632.68(4)(e)
(e) A licensee under this subsection is not subject to any prelicensing or continuing education that may be required by rule under
ch. 628.
632.68(5)
(5) Viatical settlement broker license revocation. The commissioner may revoke, suspend or refuse to renew a viatical settlement broker license if, after a hearing, the commissioner finds any of the following:
632.68(5)(a)
(a) That the licensee misrepresented information in the application.
632.68(5)(b)
(b) That the licensee has engaged in fraudulent or dishonest practices or is otherwise shown to be untrustworthy or incompetent to act as a viatical settlement broker.
632.68(5)(c)
(c) Notwithstanding
ss. 111.321,
111.322 and
111.335, that the licensee has been convicted of a misdemeanor or felony involving fraud, deceit or misrepresentation.
632.68(5)(d)
(d) That the licensee has violated any provision of this section.
632.68(6)
(6) Approval of viatical settlement contracts. No viatical settlement contract form may be used in this state unless it has been filed with and approved by the commissioner. Any viatical settlement contract form filed with the commissioner is approved if it is not disapproved within 60 days after filing. The commissioner shall disapprove a viatical settlement contract form if, in the commissioner's opinion, the contract or any of its provisions is unreasonable, contrary to any provision of this section, contrary to the public interest or otherwise misleading or unfair to the policyholder or certificate holder.
632.68(7)
(7) Reporting requirements. Annually, on or before March 1, every licensee under this section shall file with the commissioner a statement containing any information that the commissioner requires by rule.
632.68(8)
(8) Record keeping. Every licensee under this section shall maintain and make available for inspection by the commissioner records of all viatical settlement transactions. Names and other individual identifying information related to policyholders or certificate holders shall be considered confidential and may not be disclosed by the commissioner.
632.68(9)
(9) Requirements for viatical settlements and contracts. 632.68(9)(a)(a) If the policyholder or certificate holder who desires to enter into a viatical settlement contract is the person with a catastrophic or life-threatening illness or condition whose life is insured under the policy or certificate, the viatical settlement provider shall obtain all of the following before entering into the contract:
632.68(9)(a)1.
1. A written statement from the person's attending physician that the person is of sound mind.
