628.09(1)(1)
Issuance of license. Except as provided in
s. 628.095 or
628.097, the commissioner may issue a temporary license as an intermediary for a period of not more than 12 months to the personal representative of a deceased or mentally disabled intermediary, or to a person designated by an intermediary who is otherwise disabled or has entered active duty in the U.S. armed forces, in order to give time for more favorable sale of the goodwill of a business owned by the intermediary, for the recovery or return of the intermediary, or for the orderly training and licensing of new personnel for the intermediary's business.
628.09(2)
(2) Limitation on authority. The commissioner may by order limit the authority of any temporary licensee in any way deemed necessary to protect insureds and the public. The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed intermediary or insurer and who assumes full legal responsibility for all acts and omissions of the temporary licensee, may impose special bonding requirements and may impose other similar requirements designed to protect insureds and the public.
628.09(3)
(3) Examinations. The commissioner may administer an examination as a prerequisite to the issuance of a temporary license.
628.09(4)
(4) Duration of license. The commissioner may by order revoke a temporary license if the interests of insureds or the public are endangered. A temporary license may not be extended beyond the initial period specified under
sub. (1). A temporary license may not continue after the owner or the personal representative disposes of the business.
628.09(5)
(5) Fees. The fees for a temporary license are the same as for a permanent license.
628.09(6)
(6) Status of temporary licensee. A temporary licensee is a fully qualified intermediary for all purposes other than the process of licensing, the duration of the license and the limits imposed under
sub. (2).
628.09 Cross-reference
Cross Reference: See also ch.
Ins 42, Wis. adm. code.
628.095
628.095
Social security and federal employer identification numbers on license applications or at time of fee payment. 628.095(1)(1)
Required on applications. An application for a license issued under this subchapter shall contain the applicant's social security number, if the applicant is a natural person unless the applicant does not have a social security number, or the applicant's federal employer identification number, if the applicant is not a natural person.
628.095(2)
(2) Refusal to issue license. The commissioner may not issue a license, including a temporary license, under this subchapter unless the applicant provides his or her social security number, if the applicant is a natural person unless the applicant does not have a social security number, or provides the applicant's federal tax identification number, if the applicant is not a natural person.
628.095(3)
(3) Required when annual fee paid. At the time that the annual fee is paid under
s. 601.31 (1) (m), an intermediary who is a natural person shall provide his or her social security number unless the intermediary does not have a social security number, and an intermediary that is not a natural person shall provide its federal employer identification number, if the social security number or federal employer identification number was not provided on the application for the license or previously when the annual fee was paid.
628.095(4)(a)(a) The commissioner shall disclose a social security number obtained under
sub. (1) or
(3) to the department of workforce development in the administration of
s. 49.22, as provided in a memorandum of understanding entered into under
s. 49.857.
628.095(4)(b)
(b) The commissioner may disclose any information received under
sub. (1) or
(3) to the department of revenue for the purpose of requesting certifications under
s. 73.0301.
628.095(5)
(5) If applicant or intermediary has no social security number. If an applicant who is a natural person does not have a social security number, the applicant shall provide to the commissioner, along with the application for a license and on a form prescribed by the department of workforce development, a statement made or subscribed under oath or affirmation that the applicant does not have a social security number. If an intermediary who is a natural person does not have a social security number, the intermediary shall provide to the commissioner, each time that the annual fee is paid under
s. 601.31 (1) (m) and on a form prescribed by the department of workforce development, a statement made or subscribed under oath or affirmation that the applicant does not have a social security number.
628.095 History
History: 1997 a. 191,
237;
1999 a. 9.
628.097
628.097
Refusal to issue license; failure to pay support or to comply with subpoena or warrant; tax delinquency. 628.097(1m)(1m)
For failure to pay support or to comply with subpoena or warrant. The commissioner shall refuse to issue to a natural person a license, including a temporary license, under this subchapter if the natural person is delinquent in 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, or if the natural person fails 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, as provided in a memorandum of understanding entered into under
s. 49.857.
628.097(2m)
(2m) For liability for delinquent taxes. The commissioner shall refuse to issue a license, including a temporary license, under this subchapter if the department of revenue certifies under
s. 73.0301 that the applicant for the license is liable for delinquent taxes.
628.097 History
History: 1997 a. 191,
237;
2001 a. 65.
628.10
628.10
Termination of license. 628.10(1)
(1)
General. An intermediary's license issued under
s. 628.04 remains in force until it is revoked or limited under
sub. (2), until it is suspended under
sub. (2) or
s. 227.51 (3), until it is surrendered or until the licensee dies or is adjudicated incompetent as defined in
s. 880.01 (4).
628.10(2)
(2) Revocation, suspension, and limitation of licenses. 628.10(2)(a)(a) For failure to comply with continuing education requirements. The license of any intermediary who fails to produce evidence of compliance with continuing education standards set by the commissioner is suspended, effective on the day on which the evidence of compliance is due. If an intermediary whose license has been suspended under this paragraph produces evidence of compliance within 60 days after the date on which the license is suspended, the commissioner shall reinstate the license effective on the date of suspension. If such an intermediary does not produce evidence of compliance within 60 days, the license is revoked and the intermediary may be relicensed only after satisfying all requirements under
s. 628.04.
628.10(2)(am)
(am)
Nonpayment of fees. The license of an intermediary who fails to pay a fee when due is suspended on and after the date when the fee is due, if the commissioner gave the intermediary reasonable notice that the fee was due and the license would be suspended if timely payment was not made. If the intermediary pays the fee within 60 days after the date it is due, the license is reinstated effective on the date of suspension. If payment is not made within 60 days, the license is revoked and the intermediary may be relicensed only after satisfying all requirements under
s. 628.04.
628.10(2)(b)
(b)
For other reasons. Except as provided in
pars. (c) to
(d), after a hearing, the commissioner may revoke, suspend or limit in whole or in part the license of any intermediary if the commissioner finds that the licensee is unqualified as an intermediary, is not of good character or has repeatedly or knowingly violated an insurance statute or rule or a valid order of the commissioner under
s. 601.41 (4), or if the intermediary's methods and practices in the conduct of business endanger, or financial resources are inadequate to safeguard, the legitimate interests of customers and the public. Nothing in this paragraph limits the authority of the commissioner to suspend summarily an intermediary's license under
s. 227.51 (3).
628.10(2)(c)
(c)
For failure to pay support or to comply with subpoena or warrant. The commissioner shall suspend or limit the license of an intermediary who is a natural person, or a temporary license of a natural person under
s. 628.09, if the natural person is delinquent in 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, or if the natural person fails 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, as provided in a memorandum of understanding entered into under
s. 49.857.
628.10(2)(cm)
(cm)
For liability for delinquent taxes. The commissioner shall revoke the license of an intermediary, including a temporary license under
s. 628.09, if the department of revenue certifies under
s. 73.0301 that the intermediary is liable for delinquent taxes.
628.10(2)(cr)
(cr)
For providing false information in statement. The commissioner shall revoke the license of an intermediary, including a temporary license under
s. 628.09, if the commissioner determines, after a hearing, that the intermediary provided false information in a statement provided under
s. 628.095 (5) with the intermediary's application or at the time that the annual fee was paid under
s. 601.31 (1) (m).
628.10(2)(d)
(d)
For failure to provide social security number, federal employer identification number or statement. If an intermediary fails to provide a social security number or federal employer identification number as required under
s. 628.095 (3) or a statement as required under
s. 628.095 (5), the commissioner shall suspend or limit the license of the intermediary, effective the day following the last day on which the annual fee under
s. 601.31 (1) (m) may be paid, if the commissioner has given the intermediary reasonable notice of when the fee must be paid to avoid suspension or limitation. If the intermediary provides the social security number, federal employer identification number or statement within 60 days from the effective date of the suspension, the commissioner shall reinstate the intermediary's license effective as of the date of suspension.
628.10(3)
(3) Delay for new application. An order revoking an intermediary's license under
sub. (2) may specify a time not to exceed 5 years within which the former intermediary may not apply for a new license. If no time is specified, the intermediary may not apply for 5 years. An intermediary whose license is revoked under
sub. (2) (am) may immediately reapply.
628.10(4)
(4) Penalties. Any intermediary whose license is suspended or revoked shall, when the suspension ends or a new license is issued, pay all fees that would have been payable if the license had not been suspended or revoked, unless the commissioner by order waives the payment of the fees.
628.11
628.11
Listing of insurance agents. An insurer shall report to the commissioner at such intervals as the commissioner establishes by rule all appointments, including renewals of appointments, and all terminations of appointments of insurance agents to do business in this state, and shall pay the fees prescribed under
s. 601.31 (1) (n).
628.11 Cross-reference
Cross Reference: See also s.
Ins 6.57, Wis. adm. code.
628.12
628.12
Liability of surplus lines insurer. If a surplus lines insurer has assumed a risk and if the premium therefor has been received by the surplus lines agent or broker who placed the insurance, then as between the insurer and the insured the insurer is deemed to have received the premium due to it for the coverage; and the insurer is liable to the insured for losses covered by the insurance and for unearned premiums upon cancellation of the insurance, whether or not the surplus lines agent or broker is indebted to the insurer. Each surplus lines insurer assuming a surplus lines risk under this section thereby subjects itself to the terms of this section.
628.12 History
History: 1975 c. 371.
MARKETING PRACTICES
628.31
628.31
Sale of insurance through vending machines. No insurance policies may be sold by a vending machine except policies of personal travel accident insurance providing benefits for accidental bodily injury or accidental death.
628.32
628.32
Disclosure required. 628.32(1)(1) An intermediary may not accept compensation from an insured or from both an insured and another source due to the insured's purchase of insurance or for advice regarding the insured's insurance needs or coverage unless the intermediary, before the insured incurs an obligation to pay compensation, clearly and conspicuously and in writing discloses to the insured all of the following:
628.32(1)(a)
(a) The amount of compensation to be paid by the insured, excluding commissions paid by the insurer to the intermediary.
628.32(1)(b)
(b) If compensation will be paid by another source, the fact that the intermediary will also receive compensation from the other source.
628.32(2)
(2) The commissioner may promulgate rules prescribing the form for disclosure under
sub. (1).
628.34
628.34
Unfair marketing practices. 628.34(1)(a)(a)
Conduct forbidden. No person who is or should be licensed under
chs. 600 to
646, no employee or agent of any such person, no person whose primary interest is as a competitor of a person licensed under
chs. 600 to
646, and no person on behalf of any of the foregoing persons may make or cause to be made any communication relating to an insurance contract, the insurance business, any insurer or any intermediary which contains false or misleading information, including information misleading because of incompleteness. Filing a report and, with intent to deceive a person examining it, making a false entry in a record or willfully refraining from making a proper entry, are "communications" within the meaning of this paragraph. No intermediary or insurer may use any business name, slogan, emblem or related device that is misleading or likely to cause the intermediary or insurer to be mistaken for another insurer or intermediary already in business.
628.34(1)(b)
(b)
Presumption of insurer's violation. If an insurance agent distributes cards or documents, exhibits a sign or publishes an advertisement which violates
par. (a), having reference to a particular insurer that the agent represents, the agent's violation creates a rebuttable presumption that the violation was also committed by the insurer.
628.34(2)(a)(a)
General. No insurer, no employee of an insurer, and no insurance intermediary may seek to induce any person to enter into an insurance contract or to terminate an existing insurance contract by offering benefits not specified in the policy, nor may any insurer make any agreement of insurance that is not clearly expressed in the policy to be issued. This subsection does not preclude the reduction of premiums by reason of expense savings, including commission reductions, resulting from any form of mass marketing.
628.34(3)(a)(a) No insurer may unfairly discriminate among policyholders by charging different premiums or by offering different terms of coverage except on the basis of classifications related to the nature and the degree of the risk covered or the expenses involved, subject to
ss. 632.365,
632.746 and
632.748. Rates are not unfairly discriminatory if they are averaged broadly among persons insured under a group, blanket or franchise policy, and terms are not unfairly discriminatory merely because they are more favorable than in a similar individual policy.
628.34(3)(b)
(b) No insurer may refuse to insure or refuse to continue to insure, or limit the amount, extent or kind of coverage available to an individual, or charge an individual a different rate for the same coverage because of a mental or physical disability except when the refusal, limitation or rate differential is based on either sound actuarial principles supported by reliable data or actual or reasonably anticipated experience, subject to
ss. 632.746 to
632.7495.
628.34(4)
(4) Restraint of competition. No person who is or should be licensed under
chs. 600 to
646, no employee or agent of any such person, no person whose primary interest is as a competitor of a person licensed under
chs. 600 to
646, and no one acting on behalf of any of the foregoing persons, may commit or enter into any agreement to participate in any act of boycott, coercion or intimidation tending to unreasonable restraint of the business of insurance or to monopoly in that business.
628.34(5)
(5) Free choice of insurer. No person may restrict in the choice of an insurer or insurance intermediary another person required to pay the cost of insurance coverage whenever the procurement of insurance coverage is required as a condition for the conclusion of a contract or other transaction or for the exercise of any right under a contract. However, the person requiring the coverage may reserve the right to disapprove on reasonable grounds the insurer or the coverage selected. The form of corporate organization of an insurer authorized to do business in this state is not a reasonable ground for disapproval, and the commissioner may by rule specify that additional grounds are not reasonable.
628.34(6)
(6) Extra charges. No person may make any charge other than premiums and premium financing charges for the protection of property or of a security interest in property, as a condition for obtaining, renewing or continuing the financing of a purchase of the property or the lending of money on the security of an interest in the property.
628.34(7)
(7) Influencing employers. No insurer or insurance intermediary or employee or agent of either may, in connection with an insurance transaction, encourage, persuade or attempt to influence any employer to refuse employment to or to discharge any person arbitrarily or unreasonably.
628.34(8)
(8) Use of official position. No person holding an elective, appointive or civil service position in federal, state or local government may use decision-making power or influence in that position to coerce the placement of insurance for any prospective policyholder through any particular intermediary or with any particular insurer.
628.34(9)
(9) Refusal to return indicia of agency. No agent may refuse or fail to return promptly all indicia of agency to the principal on demand.
628.34(10)
(10) Insurance security fund. No insurer or insurance intermediary may make use in any manner of the protection given policyholders by
ch. 646 as a reason for buying insurance from the insurer or intermediary.
628.34(11)
(11) Other unfair trade practices. No person may engage in any other unfair method of competition or any other unfair or deceptive act or practice in the business of insurance, as defined under
sub. (12).
628.34(12)
(12) Rules defining unfair trade practices. The commissioner may define specific unfair trade practices by rule, after a finding that they are misleading, deceptive, unfairly discriminatory, provide an unfair inducement, or restrain competition unreasonably.
628.34 Cross-reference
Cross Reference: See also ss.
Ins 3.27,
6.67, and
6.68, Wis. adm. code.
628.34 Annotation
Any administrative rule requiring dissemination of cost disclosure information that is misleading due to incompleteness is beyond the scope of the insurance commissioner's authority in that it violates sub. (1) (a). Aetna Life Insurance Co. v. Mitchell,
101 Wis. 2d 90,
303 N.W.2d 639 (1981).
628.34 Annotation
There is no private right of action to enforce sub. (3). NAACP v. American Family Mutual Insurance Co.
978 F.2d 287 (1992).
628.345
628.345
Prohibited practices during license revocation or surrender. 628.345(1)(a)
(a) "Disciplinary period" means the period of time beginning on the effective date of the termination of the license of an intermediary under
par. (b) 1. and ending on the date on which a new license is issued to the intermediary. The "disciplinary period" of a person under
par. (b) 2.,
3. or
4. is the disciplinary period of the intermediary under
par. (b) 1. through which the person attains the status of "disciplined person".
628.345(1)(b)
(b) "Disciplined person" means any of the following:
628.345(1)(b)3.
3. A person in which an intermediary under
subd. 1. has, directly or indirectly, more than a 10% ownership interest.
628.345(2)
(2) During the disciplinary period of a disciplined person, the disciplined person may not be employed by, act as agent for, or be affiliated with, a person engaged in the business of an insurance intermediary.
628.345(3)
(3) No person may do any of the following with respect to activities performed in this state:
628.345(3)(a)
(a) Pay consideration to, or expenses of, a disciplined person that directly or indirectly relate to services performed as an intermediary by the disciplined person during the disciplinary period of the disciplined person.
628.345(3)(b)
(b) Pay consideration to, or expenses of, a disciplined person that directly or indirectly relate to services performed as an intermediary by the person making the payment, or by an agent, employee or affiliate of that person, during the disciplinary period of the disciplined person.
628.345(3)(c)
(c) Pay consideration to, or expenses of, a disciplined person for information directly or indirectly provided by the disciplined person during the disciplinary period of the disciplined person for the purpose of assisting in the sale of insurance.
628.345(3)(d)
(d) Seek to obtain information from, or use information directly or indirectly provided by, a disciplined person during the disciplinary period of the disciplined person for the purpose of assisting in the sale of insurance.
628.345(3)(e)
(e) During the disciplinary period of a disciplined person, permit the disciplined person to be present during solicitation of the sale of insurance, or knowingly solicit the sale of insurance with the assistance of the disciplined person, regardless of whether the disciplined person acts as an intermediary.
628.345(3)(f)
(f) During the disciplinary period of a disciplined person, use or refer to an endorsement or referral by the disciplined person for the purpose of soliciting the sale of insurance.
