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).
632.68(9)(b)7.
7. The frequency of and procedure for contacts by the provider or broker to determine the health status of the policyholder or certificate holder after the performance of the contract.
632.68(9)(b)8.
8. The bank from which the viatical settlement proceeds will be available and that the trustee or escrow agent holding the proceeds is required to pay the proceeds to the policyholder or certificate holder immediately upon notification from the insurer that the policy or certificate has been transferred to the viatical settlement provider.
632.68(9)(b)9.
9. That, except for double or additional indemnity provisions for accidental death, as a result of the viatical settlement contract no beneficiary named by the policyholder or certificate holder will receive any insurance proceeds under the policy or certificate.
632.68(9)(b)10.
10. The name of the new policyholder or certificate holder under the viatical settlement contract.
632.68(9)(c)1.1. Every viatical settlement shall be reasonable and shall meet the following minimum payment requirements:
632.68(9)(c)1.a.
a. If the insured's life expectancy is 6 months or less, 80% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)1.b.
b. If the insured's life expectancy is more than 6 months but not more than 12 months, 75% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)1.c.
c. If the insured's life expectancy is more than 12 months but not more than 24 months, 65% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)1.d.
d. If the insured's life expectancy is more than 24 months but not more than 36 months, 55% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)1.e.
e. If the insured's life expectancy is more than 36 months but not more than 48 months, 45% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)1.f.
f. If the insured's life expectancy is more than 48 months, 30% of the policy or certificate face value after reducing the face value by the amount of any outstanding loans against the policy or certificate.
632.68(9)(c)2.
2. If the total of the premiums that the viatical settlement provider expects to pay under the policy or certificate exceeds 5% of the face value of the policy or certificate, the viatical settlement provider may reduce the minimum payment amount under
subd. 1. by the percentage of the face value that the total of the premiums that the viatical settlement provider expects to pay equals.
632.68(9)(d)
(d) Every viatical settlement contract entered into in this state shall provide that the policyholder or certificate holder entering into the contract has the unconditional right to rescind the contract within 30 days after the contract is entered into or 15 days after receiving the viatical settlement proceeds, whichever is sooner. If the policyholder or certificate holder wishes to rescind the contract after receipt of the viatical settlement proceeds, the policyholder or certificate holder must refund the proceeds.
632.68(9)(e)
(e) If a policy or certificate that is the subject of a viatical settlement contract contains a provision for double or additional indemnity for accidental death, the viatical settlement contract shall provide for the same additional payment to a beneficiary named payable in the viatical settlement contract by the policyholder or certificate holder.
632.68(9)(f)
(f) Upon receipt from the policyholder or certificate holder of all documents necessary for the transfer of the life insurance policy or certificate, the viatical settlement provider shall pay all of the proceeds of the settlement into a trust account or escrow account in a bank, to be managed by a trustee or escrow agent. The trustee or escrow agent shall pay the proceeds to the former policyholder or certificate holder immediately upon receiving acknowledgement from the insurer issuing the life insurance policy or certificate that the policy or certificate has been transferred to the viatical settlement provider. Payment shall be made in a lump sum by certified check, wire transfer or electronic fund transfer to an account of the former policyholder or certificate holder, or in instalments if the settlement is effected through the purchase of an annuity or similar instrument from a person authorized by this or another state to issue annuities.
632.68(10)
(10) General rules related to viatical settlements. 632.68(10)(a)(a) A viatical settlement provider or broker may not discriminate in the making of viatical settlements on the basis of race, age, sex, national origin, creed, religion, occupation, marital or family status, sexual orientation or whether the person whose life is insured under the policy or certificate has dependents, unless any such factor affects the life expectancy of the person whose life is insured.
632.68(10)(b)
(b) A viatical settlement provider or broker may not pay or offer to pay a finder's fee, commission or other compensation to a physician, attorney, accountant or other person providing medical, legal or financial planning services to the policyholder or certificate holder of a policy or certificate that may be the subject of a viatical settlement contract, or to any other person acting as an agent of the policyholder or certificate holder with respect to a viatical settlement.
632.68(10)(c)
(c) A viatical settlement provider or broker shall comply with the confidentiality requirements of
ss. 51.30,
146.82 and
252.15 with respect to any medical information obtained by the viatical settlement provider or broker concerning the person whose life is insured under the policy or certificate.
632.68(10)(d)
(d) Contacts by a viatical settlement provider or broker for the purpose of determining the health status of a person whose life is insured under a policy or certificate that was the subject of a viatical settlement contract shall be limited to once every 3 months if the person's life expectancy was more than one year at the time that the viatical settlement contract was entered into and once per month if the person's life expectancy was one year or less at the time that the viatical settlement contract was entered into.
632.68(10)(e)
(e) The owner of a life insurance policy or certificate may not be required to enter into a viatical settlement contract as a condition of eligibility for public assistance, or as a condition for receiving the full amount of public assistance benefits for which the person is otherwise eligible.
632.68(10)(f)
(f) A viatical settlement provider or broker may not solicit or accept as investors in a life insurance policy or certificate that is the subject of a viatical settlement contract persons who are in a position to influence the treatment of the catastrophic or life-threatening illness or condition of the person whose life is insured under the policy or certificate.
632.68(10)(g)1.1. Advertising related to viatical settlements shall be truthful and may not be misleading by fact or implication.
632.68(10)(g)2.
2. If an advertisement emphasizes the speed with which a viatical settlement may occur, the advertisement shall disclose, by life expectancy category under
sub. (9) (c), the average time between the completion of the application and the receipt of the settlement proceeds under contracts with the advertiser.
632.68(10)(g)3.
3. If an advertisement emphasizes the amount of proceeds that may be received, the advertisement shall disclose, by life expectancy category under
sub. (9) (c), the average purchase price as a percentage of policy face value that has been obtained under contracts with the advertiser during the past 6 months.
632.68(11)(a)(a) The commissioner may require the filing of a bond as a condition of licensure under this section.
632.68(11)(b)
(b) The commissioner may promulgate rules that do any of the following:
632.68(11)(b)1.
1. Establish standards for determining the reasonableness of payments under viatical settlement contracts that exceed the minimum percentages under
sub. (9) (c).
632.68(11)(b)2.
2. Establish the maximum fee that a viatical settlement provider may pay a viatical settlement broker for services provided.
632.68(11)(b)3.
3. Establish standards regarding the duty of insurers to respond without unreasonable delay to a request, in writing and authorized by the policyholder or certificate holder, from a viatical settlement provider or broker for information related to a policy or certificate.
632.68(11)(b)4.
4. Define a viatical settlement agent and establish regulations related to viatical settlement agents that are consistent with this section.
632.68(11)(b)5.
5. Establish any additional standards that may be necessary for the administration of this section.
632.68 History
History: 1995 a. 371.
DISABILITY INSURANCE
632.70
632.70
Exemption for plan under ch. 635. The health insurance mandates, as defined in
s. 601.423 (1), that are provided under this subchapter apply to the small employer health insurance plan under
subch. II of ch. 635 only to the extent determined by the small employer insurance board under
s. 635.23 (1) (b).
632.70 History
History: 1991 a. 250.
632.71
632.71
Estoppel from medical examination, assignability and change of beneficiary. Sections 632.47 to
632.50 apply to disability insurance policies.
632.71 History
History: 1975 c. 373,
375,
422.
632.715
632.715
Reports of action against health care provider. Every insurer that has taken any action against a person who holds a license granted by the medical examining board or an affiliated credentialing board attached to the medical examining board shall notify the board or affiliated credentialing board of the action taken against the person if the action relates to unprofessional conduct or negligence in treatment by the person who holds the license.
632.715 History
History: 1985 a. 340;
1993 a. 107.
632.72
632.72
Medical benefits or assistance; assignment. 632.72(1g)(a)
(a) "Department or contract provider" means the department of health and family services, the county providing the medical benefits or assistance or a health maintenance organization that has contracted with the department of health and family services to provide the medical benefits or assistance.
632.72(1g)(b)
(b) "Medical benefits or assistance" means health care services funded by a relief block grant under
ch. 49; medical assistance, as defined under
s. 49.43 (8); or maternal and child health services under
s. 253.05.
632.72(1r)
(1r) The providing of medical benefits or assistance constitutes an assignment to the department or contract provider. The assignment shall be, to the extent of the medical benefits or assistance provided, for benefits to which the recipient would be entitled under any policy of health and disability insurance.
632.72(2)
(2) An insurer may not impose on the department or contract provider, as assignee of a person who is covered under the policy of health and disability insurance and who is eligible for medical benefits or assistance, requirements that are different from those imposed on any other agent or assignee of a person who is covered under the policy of health and disability insurance.
632.725
632.725
Standardization of health care billing and insurance claim forms. 632.725(1)
(1)
Definition. In this section, "health care provider" has the meaning given in
s. 146.81 (1).
632.725(2)
(2) Rules for standardization of forms. The commissioner, in consultation with the department of health and family services, shall, by rule, do all of the following:
632.725(2)(a)
(a) Establish a standardized billing format for health care services and require that a health care provider that provides health care services in this state use, by July 1, 1993, the standardized format for all printed billing forms.
632.725(2)(b)
(b) Establish a standardized claim format for health care insurance benefits and require that an insurer that provides health care coverage to one or more residents of this state use, by July 1, 1993, the standardized format for all printed claim forms.
632.725(2)(c)
(c) Establish a standardized explanation of benefits format for health care insurance benefits and require that an insurer that provides health care coverage to one or more residents of this state use, by July 1, 1993, the standardized format for all printed forms that contain an explanation of benefits. The rule shall also require that benefits be explained in easily understood language.
632.725(2)(d)
(d) Establish a uniform statewide patient identification system in which each individual who receives health care services in this state is assigned an identification number. The standardized billing format established under
par. (a) and the standardized claim format established under
par. (b) shall provide for the designation of an individual's patient identification number.
632.725(3)
(3) Proposals for legislation. The commissioner shall develop proposals for legislation for the use of the patient identification system established under
sub. (2) (d) and for the implementation of the proposed uses, including any proposals for safeguarding patient confidentiality.
632.725 History
History: 1991 a. 250;
1995 a. 27 s.
9126 (19).
632.73
632.73
Right to return policy. 632.73(1)
(1)
Right of return. A policyholder may return an individual or franchise disability policy within 10 days after receipt. If the policyholder does so, the contract is void, and all payments made under it shall be refunded. This subsection does not apply to medicare supplement policies, medicare replacement policies or long-term care insurance policies subject to
sub. (2m).
632.73(2)
(2) Notification. Subsection (1) shall in substance be conspicuously printed on the first page of each such policy or conspicuously attached thereto.
632.73(2m)
(2m) Medicare supplement policies, medicare replacement policies and long-term care insurance policies. Medicare supplement policies, medicare replacement policies and long-term care insurance policies shall have a notice that complies with this subsection prominently printed on the first page of the policy or certificate, or attached thereto. The notice shall state that the policyholder or certificate holder shall have the right to return the policy or certificate within 30 days of its delivery to the policyholder or certificate holder and to have the premium refunded to the person who paid the premium if, after examination of the policy or certificate, the policyholder or certificate holder is not satisfied for any reason. The commissioner may by rule exempt from this subsection certain classes of medicare supplement policies, medicare replacement policies and long-term care insurance policies, if the commissioner finds the exemption is not adverse to the interests of policyholders and certificate holders.
