632.77(3)
(3) Limitations on payments. Any limitation on payments because of other insurance or because of the income of the insured must be in accordance with provisions approved by the commissioner by rule or explicitly approved in approving the policy form, but the commissioner may not promulgate a rule that conflicts with
s. 632.755 nor approve a policy form that does not comply with
s. 632.755.
632.77(4)
(4) Facility of payment. Reasonable facility of payment clauses may be inserted. Payment in accordance with such clauses shall discharge the insurer's obligation to pay claims.
632.775
632.775
Effect of power of attorney for health care. 632.775(1)(1)
Insurer may not require. An insurer may not require an individual to execute a power of attorney for health care under
ch. 155 as a condition of coverage under a disability insurance policy.
632.775(2)
(2) Effect on disability policies. Executing a power of attorney for health care under
ch. 155 may not be used to impair in any manner the procurement of a disability insurance policy or to modify the terms of an existing disability insurance policy. A disability 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 who is insured under the policy and who has authorized the health care agent under
ch. 155.
632.775 History
History: 1989 a. 200.
632.78
632.78
Required grace period for disability insurance policies. Every disability insurance policy shall contain clauses providing for a grace period of at least 7 days for weekly premium policies, 10 days for monthly premium policies and 31 days for all other policies, for each premium after the first, during which the policy shall continue in force. In group and blanket policies the policy must provide for a grace period of at least 31 days unless the policyholder gives written notice of discontinuance prior to the date of discontinuance and in accordance with the policy terms. In group or blanket policies, the policy may provide for payment of a proportional premium for the period the policy is in effect during the grace period under this section.
632.785
632.785
Notice of mandatory risk-sharing plan. 632.785(1)
(1) If an insurer issues one or more of the following or takes any other action based wholly or partially on medical underwriting considerations which is likely to render any person eligible under
s. 619.12 for coverage under
subch. II of ch. 619, the insurer shall notify all persons affected of the existence of the mandatory health insurance risk-sharing plan under
subch. II of ch. 619, as well as the eligibility requirements and method of applying for coverage under the plan:
632.785(1)(a)
(a) A notice of rejection or cancellation of coverage.
632.785(1)(b)
(b) A notice of reduction or limitation of coverage, including restrictive riders, if the effect of the reduction or limitation is to substantially reduce coverage compared to the coverage available to a person considered a standard risk for the type of coverage provided by the plan.
632.785(1)(c)
(c) A notice of increase in premium exceeding the premium then in effect for the insured person by 50% or more, unless the increase applies to substantially all of the insurer's health insurance policies then in effect.
632.785(1)(d)
(d) A notice of premium for a policy not yet in effect which exceeds the premium applicable to a person considered a standard risk by 50% or more for the types of coverage provided by the plan.
632.785(2)
(2) Any notice issued under
sub. (1) shall also state the reasons for the rejection, termination, cancellation or imposition of underwriting restrictions.
632.79
632.79
Notice of termination of group hospital, surgical or medical expense insurance coverage due to cessation of business or default in payment of premiums. 632.79(1)(1)
Scope. This section shall apply to every group hospital, surgical or medical expense insurance policy or service plan purchased by or on behalf of an employer to provide coverage for employes and issued under
s. 185.981 or by any insurer authorized under
chs. 600 to
646 which has been delivered, renewed or is otherwise in force on or after June 12, 1976.
632.79(2)
(2) Notice to policyholder or party responsible for payment of premiums. 632.79(2)(a)(a) Prior to termination of any group policy, plan or coverage subject to this section due to a cessation of business or default in payment of premiums by the policyholder, trust, association or other party responsible for such payment, the insurer or organization issuing the policy, contract, booklet or other evidence of insurance shall notify in writing the policyholder, trust, association or other party responsible for payment of premiums of the date as of which the policy or plan will be terminated or discontinued. At such time, the insurer or organization shall additionally furnish to the policyholder, trust, association or other party a notice form in sufficient number to be distributed to covered employes or members indicating what rights, if any, are available to them upon termination.
632.79(2)(b)
(b) For purpose of notice and distribution to covered employes and members under
par. (a), the administrator responsible for determining the persons covered and the premiums payable to the insurer or organization under any group policy or plan of disability insurance is responsible for providing such notices.
632.79(3)
(3) Liability of insurer or service organization for payment of claims. Under any group policy or plan subject to this section, the insurer or organization shall be liable for all valid claims for covered losses prior to the expiration of any grace period specified in the group policy or plan.
632.79(5)
(5) Notice exception. The notice requirements of this section shall not apply if a group policy or plan providing coverage to employes or members is terminated and immediately replaced by another policy or plan providing similar coverage to such employes or members.
632.79 History
History: 1975 c. 352; Stats. 1975 s. 204.324;
1975 c. 422 s.
106; Stats. 1975 s. 632.79;
1979 c. 32,
221.
632.793
632.793
Notice of loss of primary insurance coverage due to age. 632.793(1)(1)
Notice to insured and employer. If an individual who is covered under a group disability insurance policy, as defined in
s. 632.895 (1) (a), that is purchased by or on behalf of an employer to provide coverage for employes will lose primary coverage under the policy upon reaching age 65, the insurer issuing the policy shall provide written notice of the change in coverage status by regular mail to the individual and shall send a copy of the notice by regular mail to the employer. The insurer shall provide the notice not less than 30 nor more than 60 days before the individual becomes 65 years of age. The notice shall specify the date on which the insurance coverage will no longer be primary and shall inform the individual that he or she will be eligible for coverage under the federal medicare program at age 65.
632.793(2)
(2) Applicability. Subsection (1) does not apply if the employer has at least 20 employes for each working day in at least 20 calendar weeks in the current year or the preceding year.
632.793 History
History: 1993 a. 108.
632.795
632.795
Open enrollment upon liquidation. 632.795(1)
(1)
Definition. In this section, "liquidated insurer" means an insurer ordered liquidated under
ch. 645 or under similar laws of another jurisdiction.
632.795(2)
(2) Coverage for group members. Except as provided in
sub. (5) and unless otherwise provided by rule or order of the commissioner, an insurer described in
sub. (3) shall permit insureds or enrolled participants of a liquidated insurer's group health care policy or plan to obtain coverage under a comprehensive group health care policy or plan offered by the insurer in the manner and under the terms required by
sub. (4).
632.795(3)
(3) Participating insurers. Subsection (2) applies to an insurer that participated in the most recent enrollment period in which the group members were able to choose among coverage offered by the liquidated insurer and coverage offered by one or more other insurers, if all of the following are satisfied:
632.795(3)(a)
(a) Coverage under a comprehensive group health care policy or plan offered by the insurer was selected by one or more members of the group in the most recent enrollment period.
632.795(3)(b)
(b) The most recent enrollment period occurred on or after July 1, 1989.
632.795(4)(a)(a) An insurer subject to
sub. (2) shall provide coverage under the same policy form and for the same premium as it originally offered in the most recent enrollment period, subject only to the medical underwriting used in that enrollment period. Unless otherwise prescribed by rule, the insurer may apply deductibles, preexisting condition limitations, waiting periods or other limits only to the extent that they would have been applicable had coverage been extended at the time of the most recent enrollment period and with credit for the satisfaction or partial satisfaction of similar provisions under the liquidated insurer's policy or plan. The insurer may exclude coverage of claims that are payable by a solvent insurer under insolvency coverage required by the commissioner or by the insurance regulator of another jurisdiction. Coverage shall be effective on the date that the liquidated insurer's coverage terminates.
632.795(4)(b)
(b) An insurer subject to
sub. (2) shall offer coverage to the group members, and the policyholder shall provide group members with the opportunity to obtain coverage, in the manner and within the time limits required by the commissioner by rule or order.
632.795(5)
(5) Medical assistance enrollees. This section does not apply to persons enrolled in a health care plan offered by a liquidated insurer if the persons are enrolled in that plan under a contract between the department of health and family services and the liquidated insurer under
s. 49.45 (2) (b) 2.
632.795 History
History: 1989 a. 23;
1995 a. 27 s.
9126 (19).
632.797
632.797
Disclosure of group health claims experience. 632.797(1)(a)(a) Except as provided in
subs. (2) and
(3), an insurer shall provide the policyholder of a group or blanket disability insurance policy, or an employer that provides health care coverage to its employes through a multiple-employer trust, with the policyholder's or the employer's aggregate group health claims experience for the current policy period, and for up to 2 policy periods immediately preceding the current policy period if the insurer provided coverage during those periods, upon request from the policyholder or employer.
632.797(1)(b)
(b) The insurer shall provide the information under
par. (a) no later than 30 days after receiving a request for that information from the policyholder or employer.
632.797(1)(c)
(c) The insurer may not charge the policyholder or the employer for providing the information under
par. (a) one time in a 12-month period.
632.797(2)
(2) An insurer is not required to provide the information under
sub. (1) unless the policyholder or employer requesting the information provides coverage under the policy for at least 50 individuals, exclusive of individuals who have coverage under the policy as a dependent of another individual.
632.797(3)
(3) Notwithstanding
sub. (1), an insurer is not required to provide health claims experience under
sub. (1) for any period of time that is before 18 months before the date on which the information is requested.
632.797(4)
(4) Subsection (1) does not require that an insurer provide the policyholder of a group or blanket disability insurance policy, or an employer that provides health care coverage to its employes through a multiple-employer trust, with the health claims experience of an individual employe or insured.
632.797(5)
(5) An insurer is not required under
sub. (1) to provide information that identifies an individual or that is confidential under
s. 146.82.
632.797(6)
(6) An insurer that provides aggregate health claims experience information in compliance with this section is immune from civil liability for its acts or omissions in providing such information.
632.797 History
History: 1993 a. 448.
632.80
632.80
Restrictions on medical payments insurance. The provisions of this subchapter do not apply to medical payments insurance when it is a part of or supplemental to liability, steam boiler, elevator, automobile or other insurance covering loss of or damage to property, provided the loss, damage or expense arises out of a hazard directly related to such other insurance.
632.80 History
History: 1975 c. 375.
632.81
632.81
Minimum standards for certain disability policies. The commissioner may by rule establish minimum standards for benefits, claims payments, marketing practices, compensation arrangements and reporting practices for medicare supplement policies, medicare replacement policies and long-term care insurance policies. The commissioner may by rule exempt from the minimum standards certain types of coverage, if the commissioner finds the exemption is not adverse to the interests of policyholders and certificate holders.
632.82
632.82
Renewability of long-term care insurance policies. Notwithstanding
s. 631.36 (2) to
(5), the commissioner shall, by rule, require long-term care insurance policies that are issued on an individual basis to include a provision restricting the insurer's ability to terminate or alter the long-term care insurance policy except for nonpayment of premium. The rule may specify exceptions to the restriction, including exceptions that allow insurers to do any of the following:
632.82(1)
(1) Change the rates charged on a long-term care insurance policy if the rate change is made on a class basis.
632.82(2)
(2) Refuse to renew a long-term care insurance policy if conditions specified in the rule are satisfied. The conditions shall, at a minimum, require all of the following:
632.82(2)(a)
(a) That the nonrenewal be on other than an individual basis.
632.82(2)(b)
(b) That the insurer demonstrate to the commissioner that renewal will affect the insurer's solvency or loss experience as specified in the rule.
632.82 History
History: 1989 a. 31.
632.825
632.825
Midterm termination of long-term care insurance policy by insured. 632.825(1)(a)(a) No insurer that provides coverage under a long-term care insurance policy may prohibit the insured under the policy from canceling the policy before the expiration of the agreed term.
632.825(1)(b)
(b) If an insured under a long-term care insurance policy cancels the policy before the expiration of the agreed term, the insurer shall issue a prorated premium refund to the insured.
632.825(1)(c)
(c) If an insured under a long-term care insurance policy dies during the term of the policy, the insurer shall issue a prorated premium refund to the insured's estate.
632.825(2)
(2) Policy provision. Every long-term care insurance policy shall contain a provision that apprises the insured of the insured's right to cancel and the insurer's premium refund responsibilities under
sub. (1).
632.825 History
History: 1993 a. 207.
632.84
632.84
Benefit appeals under certain policies. 632.84(1)(b)
(b) "Nursing home insurance policy" means an individual or group insurance policy which provides coverage primarily for confinement or care in a nursing home.
632.84(2)(a)(a) Except as provided in
sub. (3), an insurer offering a medicare supplement policy, medicare replacement policy, nursing home insurance policy or long-term care insurance policy shall establish an internal procedure by which the policyholder or the certificate holder or a representative of the policyholder or the certificate holder may appeal the denial of any benefits under the medicare supplement policy, medicare replacement policy, nursing home insurance policy or long-term care insurance policy. The procedure established under this paragraph shall include all of the following:
632.84(2)(a)1.
1. The opportunity for the policyholder or certificate holder or a representative of the policyholder or certificate holder to submit a written request, which may be in any form and which may include supporting material, for review by the insurer of the denial of any benefits under the policy.
632.84(2)(a)2.
2. Within 30 days after receiving the request under
subd. 1., disposition of the review and notification to the person submitting the request of the results of the review.
632.84(2)(b)
(b) An insurer shall describe the procedure established under
par. (a) in every policy, group certificate and outline of coverage issued in connection with a medicare supplement policy, medicare replacement policy, nursing home insurance policy or long-term care insurance policy.
632.84(2)(c)
(c) If an insurer denies any benefits under a medicare supplement policy, medicare replacement policy, nursing home insurance policy or long-term care insurance policy, the insurer shall, at the time the insurer gives notice of the denial of any benefits, provide the policyholder and certificate holder with a written description of the appeal process established under
par. (a).
632.84(2)(d)
(d) An insurer offering a medicare supplement policy, medicare replacement policy, nursing home insurance policy or long-term care insurance policy shall annually report to the commissioner a summary of all appeals filed under this section and the disposition of those appeals.
632.84(3)
(3) Exceptions. This section does not apply to a health maintenance organization, limited service health organization or preferred provider plan, as defined in
s. 609.01.
632.84 History
History: 1987 a. 156,
403;
1989 a. 31.
632.86
632.86
Restrictions on pharmaceutical services. 632.86(1)(a)
(a) "Disability insurance policy" has the meaning given in
s. 632.895 (1) (a), except that the term does not include coverage under a health maintenance organization, as defined in
s. 609.01 (2), a limited service health organization, as defined in
s. 609.01 (3), a preferred provider plan, as defined in
s. 609.01 (4), or a sickness care plan operated by a cooperative association organized under
ss. 185.981 to
185.985.
632.86(1)(b)
(b) "Pharmaceutical mail order plan" means a plan under which prescribed drugs or devices are dispensed through the mail.
632.86(2)
(2) No group or blanket disability insurance policy that provides coverage of prescribed drugs or devices through a pharmaceutical mail order plan may do any of the following:
632.86(2)(a)
(a) Exclude coverage, expressly or by implication, of any prescribed drug or device provided by a pharmacist or pharmacy selected by a covered individual if the pharmacist or pharmacy provides or agrees to provide prescribed drugs or devices under the terms of the policy and at the same cost to the insurer issuing the policy as a pharmaceutical mail order plan.
632.86(2)(b)
(b) Contain coverage, deductible or copayment provisions for prescribed drugs or devices provided by a pharmacist or pharmacy selected by a covered individual that are different from the coverage, deductible or copayment provisions for prescribed drugs or devices provided by a pharmaceutical mail order plan.
