138.12(4)(b)
(b) The division shall issue or renew a license when the division is satisfied that the person to be licensed satisfies all of the following, as applicable:
138.12(4)(b)1.
1. Is competent and trustworthy and intends to act in good faith in the capacity involved by the license applied for.
138.12(4)(b)2.
2. Has a good business reputation and has had experience, training or education so as to be qualified in the business for which the license is applied for.
138.12(4)(b)3.
3. If a corporation, is a corporation incorporated under the laws of this state or a foreign corporation authorized to transact business in this state.
138.12(4)(b)3L.
3L. If a limited liability company, is organized under the laws of this state or a foreign limited liability company authorized to transact business in this state.
138.12(4)(b)5.
5. Has not been certified by the department of revenue under
s. 73.0301 as being liable for delinquent taxes.
138.12(4)(b)6.
6. If an individual, has not failed to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings and is not delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under
s. 49.857.
138.12(5)(a)(a) The division may revoke or suspend the license of any insurance premium finance company if the division finds any of the following:
138.12(5)(a)1.
1. Any license issued to such company was obtained by fraud.
138.12(5)(a)2.
2. There was any misrepresentation in the application for the license.
138.12(5)(a)3.
3. The holder of such license has otherwise shown himself or herself untrustworthy or incompetent to act as a premium finance company.
138.12(5)(a)4.
4. The company has violated any provision of this section.
138.12(5)(a)5.
5. The company has been rebating part of the service charge as allowed and permitted herein to any insurance agent or insurance broker or any employee of an insurance agent or insurance broker or to any other person as an inducement to the financing of any insurance policy with the premium finance company.
138.12(5)(am)1.1. The division shall deny an application for a license renewal if any of the following applies:
138.12(5)(am)1.b.
b. The department of revenue has certified under
s. 73.0301 that the applicant is liable for delinquent taxes under
s. 73.0301. An applicant whose renewal application is denied under this
subd. 1. b. is entitled to a hearing under
s. 73.0301 (5) (a) but is not entitled to a hearing under
par. (b).
138.12(5)(am)1.c.
c. In the case of a licensee who is an individual, the applicant fails to comply, after appropriate notice, with a subpoena or warrant that is issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and that is related to paternity or child support proceedings or the applicant is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under
s. 49.857. An applicant whose renewal application is denied under this
subd. 1. c. is entitled to a notice and hearing under
s. 49.857 but is not entitled to a hearing under
par. (b).
138.12(5)(am)2.
2. The division shall restrict or suspend the license of any insurance premium finance company if the division finds that, in the case of a licensee who is an individual, the licensee fails to comply, after appropriate notice, with a subpoena or warrant that is issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and that is related to paternity or child support proceedings or the licensee is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under
s. 49.857. A licensee whose license is restricted or suspended under this subdivision is entitled to a notice and hearing under
s. 49.857 but is not entitled to a hearing under
par. (b).
138.12(5)(am)3.
3. The division shall revoke the license of any insurance premium finance company if the department of revenue has certified under
s. 73.0301 that the licensee is liable for delinquent taxes under
s. 73.0301. A licensee whose license is revoked under this subdivision for delinquent taxes is entitled to a hearing under
s. 73.0301 (5) (a) but is not entitled to a hearing under
par. (b).
138.12(5)(b)
(b) Before the division revokes, suspends or refuses to renew the license of any premium finance company, the division shall give the company an opportunity to be fully heard and to introduce evidence in the company's behalf. In lieu of revoking or suspending the license for any of the causes enumerated in this subsection, after hearing, the division may subject the premium finance company to a penalty of not more than $200 for each offense when in the division's judgment the division finds that the public interest would not be harmed by the continued operation of such company. The amount of any penalty under this paragraph shall be paid by the company to the division for the use of the state. At any hearing under this subsection, the division may administer oaths to witnesses. Anyone testifying falsely, after having been administered the oath, shall be subject to the penalty of perjury.
138.12(5)(c)
(c) Any action of the division in refusing to issue or renew a license shall be subject to review under
subch. III of ch. 227.
138.12(6)(a)(a) Every licensee shall maintain records of its premium finance transactions and the records shall be open to an examination and investigation by the division. The division may make an examination of the books, records and accounts of any licensee as the division deems necessary. The division shall determine the cost of an examination and that cost shall be assessed against and paid by the licensee so examined. The division may, at any time, require any licensee to bring such records as the division directs to the division for examination.
138.12(6)(b)
(b) Every licensee shall preserve its records of such premium finance transactions, including cards used in a card system, for at least 3 years after making the final entry in respect to any premium finance agreement. The preservation of records in photographic form or other form authorized under
s. 220.285 shall constitute compliance with this requirement.
138.12(7)
(7) Rules and regulations. The division may make and enforce such reasonable rules as are necessary to carry out this section, but such rules shall not be contrary to nor inconsistent with this section.
138.12(8)(a)1.
1. Be dated, signed by or on behalf of the insured, and the printed portion thereof shall be in at least 8-point type,
138.12(8)(a)2.
2. Contain the name and place of business of the insurance agent or insurance broker negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by the insured, the name and place of business of the premium finance company to which instalment or other payments are to be made, a description of the insurance contracts, including term and type of policy, the premiums for which are advanced or to be advanced under the agreement and the amount of the premiums therefor; and
138.12(8)(a)3.c.
c. The principal balance (the difference between items a and b),
138.12(8)(a)3.f.
f. The number of instalments required, the amount of each instalment expressed in dollars, and the due date or period thereof.
138.12(8)(b)
(b) The items set forth in
par. (a) 3. need not be stated in the sequence or order in which they appear and additional items may be included to explain the computations made in determining the amount to be paid by the insured.
138.12(9)
(9) Service charges. A premium finance company shall not charge, contract for, receive or collect a service charge other than as permitted by this subsection unless it is a licensed lender regulated under
sub. (10).
138.12(9)(a)
(a) The service charge shall be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when the final instalment of the premium finance agreement is payable.
138.12(9)(b)
(b) The service charge may not exceed the interest rate authorized under
s. 422.201 (2) (bm) per year plus an additional charge of $10 per premium finance agreement, but, if the principal balance is $50 or less there shall be no additional charge, and if the principal balance is more than $50 but not more than $100, the additional charge is $6.
138.12(9)(bm)
(bm) Paragraph (b) applies only to a premium finance agreement in which the related insurance contract is for personal, family or household use entered into before November 1, 1984. The service charge for any other premium finance agreement shall be as agreed by the parties to the agreement.
138.12(9)(c)
(c) The service charge shall be computed on the principal balance of a premium finance agreement payable in successive monthly instalments substantially equal in amount for a period of one year. On a premium finance agreement providing for instalments extending for a period less than or greater than one year, the service charge shall be computed proportionately.
138.12(9)(d)
(d) Notwithstanding the provisions of any premium finance agreement, any insured may prepay the obligation in full at any time. In such event, the insured shall receive a refund credit. The amount of such refund credit shall represent at least as great a proportion of the service charge as the sum of the periodic balances after the month in which prepayment is made bears to the sum of all periodic balances under the schedule of instalments in the agreement. Where the amount of the refund credit is less than $1, no refund need be made. If in addition to the service charge an additional charge was imposed, such additional charge need not be refunded nor taken into consideration in computing the refund credit.
138.12(10)
(10) Charges by licensed lenders; rebates. 138.12(10)(a)(a) A lender licensed under
s. 138.09 may charge interest as provided in that section for a loan involving a premium finance agreement.
138.12(10)(b)
(b) The interest shall be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when the final instalment of the premium finance agreement is payable.
138.12(10)(c)
(c) Notwithstanding the provisions of any premium finance agreement, any insured may prepay the obligation in full at any time. In such event the insured shall receive a rebate as provided under
s. 138.09.
138.12(10)(d)
(d) Except as provided in
sub. (12) to the contrary,
s. 138.09 applies to a loan involving a premium finance agreement made by a licensed lender.
138.12(11)(a)(a) A premium finance agreement may provide for the payment by the insured of a delinquency or default charge of $1 to a maximum of 5% of any delinquent instalment which is in default for a period of 5 days or more. If the default results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge of $15. A premium finance agreement may also provide for the payment of statutory attorneys' fees and statutory court costs if the agreement is referred for collection to an attorney not a salaried employee of the insurance premium finance company.
138.12(11)(b)
(b) This subsection does not apply to loans by licensed lenders regulated under
s. 138.09.
138.12(12)
(12) Cancellation. When a premium finance agreement contains a power of attorney or other authority enabling the insurance premium finance company to cancel any insurance contract listed in the agreement, the following applies:
138.12(12)(a)
(a) Not less than 10 days' written notice shall be mailed to the insured of the intent of the insurance premium finance company to cancel the insurance contract unless the default is cured prior to the date stated in the notice. The insurance agent or insurance broker indicated on the premium finance agreement shall also be mailed 10 days' notice of such action.
138.12(12)(b)
(b) Pursuant to the power of attorney or other authority referred to above, the insurance premium finance company may cancel on behalf of the insured by mailing to the insurer written notice stating when thereafter the cancellation shall be effective, and the insurance contract shall be canceled as if such notice of cancellation had been submitted by the insured himself or herself, but without requiring the return of the insurance contract. The insurance premium finance company shall also mail a notice of cancellation to the insured at the insured's last-known address and to the insurance agent or insurance broker indicated on the premium finance agreement. Compliance by the premium finance company with the provisions of the premium finance agreement or
par. (a), shall not be a condition of effective cancellation hereunder.
138.12(12)(c)
(c) Where statutory, regulatory or contractual restrictions provide that the insurance contract may not be canceled unless notice is given to a governmental agency, mortgagee or other 3rd party, the insurer shall give the prescribed notice on behalf of itself or the insured to such governmental agency, mortgagee or other 3rd party within a reasonable time after the day it receives the notice of cancellation from the premium finance company. When the above restrictions require the continuation of insurance beyond the effective date of cancellation specified by the premium finance company such insurance shall be limited to the coverage to which such restrictions relate and to the persons they are designed to protect.
138.12(12)(d)
(d) Whenever a financed insurance contract is canceled the insurer shall return whatever unearned premiums are due under the insurance contract to the insurance premium finance company for the account of the insured, and such action by the insurer shall be deemed to satisfy the insurer's obligations under the insurance contract which relate to the return of unearned premiums. If the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund such excess to the insured but no such refund shall be required if it amounts to less than $1.
138.12(13)
(13) No filing necessary. No filing of the premium finance agreement or recording of a premium finance transaction shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrancers, successors or assigns.
138.12(14)
(14) Established insurance premium finance companies. Any person or corporation engaged in the business of an insurance premium finance company on May 19, 1970, may continue in operation under this section but shall obtain a license by January 1, 1970.
138.12(15)
(15) Applicability of chs. 421 to 427 to this section. All consumer loans as defined in
chs. 421 to
427 made by licensees under this section shall be governed by this section to the extent that
chs. 421 to
427 are inconsistent with this section.
138.20
138.20
Discrimination in granting credit or loans prohibited. 138.20(1)(1)
Rule. No financial organization, as defined under
ss. 71.04 (8) (a) and
71.25 (10) (a), or any other credit granting commercial institution may discriminate in the granting or extension of any form of loan or credit, or of the privilege or capacity to obtain any form of loan or credit, on the basis of the applicant's physical condition, developmental disability as defined in
s. 51.01 (5), sex or marital status; provided, however, that no such organization or institution shall be required to grant or extend any form of loan or credit to any person who such organization or institution has evidence demonstrating the applicant's lack of legal capacity to contract therefor or to contract with respect to any mortgage or security interest in collateral related thereto.
138.20(2)
(2) Penalty. Any person violating this section may be fined not more than $1,000. Each individual who is discriminated against under this section constitutes a separate violation.
138.20 Note
NOTE: As to sub. (1m), see notes in
1985 Wis. Act 37, marital property trailer bill.
