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.
632.68(9)(a)2.
2. A written statement, signed by the person and witnessed by 2 disinterested adults, in which the person does all of the following:
632.68(9)(a)2.b.
b. Acknowledges his or her catastrophic or life-threatening illness or condition.
632.68(9)(a)2.c.
c. Releases his or her medical records to the viatical settlement provider.
632.68(9)(a)2.d.
d. Represents that he or she understands the viatical settlement contract, the benefits under the life insurance policy or certificate and the relationship between the viatical settlement contract and the life insurance policy or certificate.
632.68(9)(a)2.e.
e. Acknowledges that he or she is entering into the viatical settlement contract freely and voluntarily.
632.68(9)(a)2.f.
f. Affirms that he or she has received a recommendation from a viatical settlement provider or a viatical settlement broker in writing to seek financial advice from an individual or entity other than the viatical settlement provider or a viatical settlement broker regarding the effect of the viatical settlement on creditor claims, income taxes and government benefits.
632.68(9)(b)
(b) Before the execution of a viatical settlement contract, a viatical settlement provider or a viatical settlement broker shall disclose to the policyholder or certificate holder all of the following:
632.68(9)(b)1.
1. That he or she is a viatical settlement provider or broker.
632.68(9)(b)1m.
1m. That there may be alternatives to viatical settlements for persons with a catastrophic or life-threatening illness or condition and what those alternatives are, including accelerated benefits under the life insurance policy or certificate.
632.68(9)(b)2.
2. That the policyholder or certificate holder should obtain financial advice from a financial counselor, a tax adviser or an appropriate agency.
632.68(9)(b)3.
3. That some or all of the viatical settlement proceeds may be taxable and that he or she should seek advice from a personal tax adviser.
632.68(9)(b)4.
4. That the viatical settlement proceeds may be subject to the claims of creditors.
632.68(9)(b)5.
5. That receipt of a viatical settlement may adversely affect the recipient's eligibility for medicaid or other government benefits and that he or she should seek advice from any appropriate agencies.
632.68(9)(b)6.
6. That the policyholder or certificate holder may rescind the viatical settlement contract as provided in
par. (d).
