632.896(6)
(6) Notice to insurer. The disability insurance policy may require the insured to notify the insurer that a child is adopted or placed for adoption and to pay the insurer any premium or fees required to provide coverage for the child, within 60 days after coverage is required to begin under
sub. (3). If the insured fails to give notice or make payment within 60 days as required by the disability insurance policy in accordance with this subsection, the disability insurance policy shall treat the adopted child or child placed for adoption no less favorably than it treats other dependents, other than newborn children, who seek coverage at a time other than when the dependent was first eligible to apply for coverage.
632.897
632.897
Hospital and medical coverage for persons insured under individual and group policies. 632.897(1)(ac)
(ac) "Custodial parent" means the parent of a child who has been awarded physical placement with the child for more than 50% of the time.
632.897(1)(am)
(am) "Dependent" means a person who is or would be covered as a dependent of a group member under the terms of the group policy including, but not limited to, age limits, if the group member continues or had continued as a member of the group.
632.897(1)(b)
(b) "Employer" means the policyholder in the case of a group policy as defined in
par. (c) 1. or
1m. and the sponsor in the case of a group policy as defined in
par. (c) 2. or
3.
632.897(1)(c)1.
1. An insurance policy issued by an insurer to a policyholder on behalf of a group whose members thereby receive hospital or medical coverage on either an expense incurred or service basis, other than for specified diseases or for accidental injuries;
632.897(1)(c)1m.
1m. A long-term care insurance policy issued by an insurer to a policyholder on behalf of a group;
632.897(1)(c)2.
2. An uninsured plan or program whereby a health maintenance organization, limited service health organization, preferred provider plan, labor union, religious community or other sponsor contracts to provide hospital or medical coverage to members of a group on either an expense incurred or service basis, other than for specified diseases or for accidental injuries; or
632.897(1)(c)3.
3. A plan or program whereby a sponsor arranges for the mass marketing of franchise insurance to members of a group related to one another through their relationship with the sponsor.
632.897(1)(cm)
(cm) "Individual policy" means an insurance policy whereby an insured receives hospital or medical coverage on either an expense incurred or service basis, other than for specified diseases or for accidental injuries, and a long-term care insurance policy.
632.897(1)(d)
(d) "Insurer" means the insurer in the case of a group policy as defined in
par. (c) 1.,
1m. or
3. and the sponsor in the case of a group policy as defined in
par. (c) 2.
632.897(1)(e)
(e) "Medicare" means coverage under both part A and part B of Title XVIII of the federal social security act,
42 USC 1395 et seq., as amended.
632.897(1)(f)
(f) "Terminated insured" means a person entitled to elect continued or conversion coverage under
sub. (2) (b) or
(9).
632.897(1m)
(1m) Except as provided in
sub. (10), this section applies to any group policy which would otherwise be exempt under
s. 600.01 (1) (b) 3. if at least 150 of the certificate holders or insureds are residents of this state.
632.897(2)(a)(a) No group policy which provides coverage to the spouse of the group member may contain a provision for termination of coverage for the spouse solely as a result of a break in their marital relationship except by reason of the entry of a judgment of divorce or annulment of their marriage.
632.897(2)(b)
(b) An insurer issuing or renewing a group policy on or after May 14, 1980 and every insurer on and after the date which is 2 years after May 14, 1980 shall permit the following persons who have been continuously covered under a group policy for at least 3 months to elect to continue group policy coverage under
sub. (3) or to convert to individual coverage under
sub. (4):
632.897(2)(b)1.
1. The former spouse of a group member who otherwise would terminate coverage because of divorce or annulment.
632.897(2)(b)2.
2. A group member who would otherwise terminate eligibility for coverage under the group policy other than a group member who terminates eligibility for coverage due to discharge for misconduct shown in connection with his or her employment.
632.897(2)(b)3.
3. The spouse or dependent of a group member if the group member dies while covered by the group policy and the spouse or dependent was also covered.
632.897(2)(c)
(c) Group policy coverage of a terminated insured who is entitled under
par. (b) to elect continued group policy coverage or conversion to individual coverage and coverage of the spouse and dependents of the terminated insured provided for in the group policy continues until the terminated insured is notified under
par. (d) of the right to elect continued or conversion coverage if the premium for the coverage continues to be paid.
632.897(2)(d)
(d) If the employer is notified to terminate the coverage for any of the reasons provided under
par. (b), the employer shall provide the terminated insured written notification of the right to continue group coverage or convert to individual coverage and the payment amounts required for either continued or converted coverage including the manner, place and time in which the payments shall be made. This notice shall be given not more than 5 days after the employer receives notice to terminate coverage. The payment amount for continued group coverage may not exceed the group rate in effect for a group member, including an employer's contribution, if any, for a group policy as defined in
sub. (1) (c) 1. or
1m. or the equivalent value of the monthly contribution of a group member to a group policy as defined in
sub. (1) (c) 2. or the equivalent value of the monthly premium for franchise insurance as defined in
sub. (1) (c) 3. The premium for converted coverage shall be determined in accordance with the insurer's table of premium rates applicable to the age and class of risks of each person to be covered under that policy and to the type and amount of coverage provided. The notice may be sent to the terminated insured's home address as shown on the records of the employer.
632.897(3)(a)(a) If the terminated insured or, with respect to a minor, the parent or guardian of the terminated insured, elects to continue group coverage and tenders to the employer the amount required within 30 days after receiving notice under
sub. (2) (d), coverage of the terminated insured and, if the terminated insured is eligible for continued coverage under
sub. (2) (b) 2., coverage of the covered spouse and dependents of the terminated insured shall continue without interruption and may not terminate unless one of the following occurs:
632.897(3)(a)1.
1. The terminated insured establishes residence outside this state.
632.897(3)(a)2.
2. The terminated insured fails to make timely payment of a required premium amount.
632.897(3)(a)3.
3. The terminated insured is eligible for continued coverage under
sub. (2) (b) 1. and the group member through whom the former spouse originally obtained coverage is no longer eligible for coverage by the group policy.
632.897(3)(a)4.
4. The terminated insured becomes eligible for similar coverage under another group policy.
632.897(3)(b)
(b) If the coverage of the terminated insured is terminated under
par. (a) 3. and the group member through whom the terminated insured originally obtained coverage becomes eligible for coverage by a replacement group policy providing coverage to the same group, the former spouse shall have the right to coverage by the replacement group policy as provided in this subsection.
632.897(3)(c)
(c) If the right of the terminated insured to continue group policy coverage is terminated under
par. (a) 3. and the group member does not become eligible for coverage by a replacement group policy, the terminated insured has the right to convert to individual coverage under
sub. (4), unless
sub. (4) (d) applies.
632.897(3)(d)
(d) If the right of the terminated insured to continue group policy coverage is terminated under
par. (a) 1. the terminated insured, and a spouse or dependent of the terminated insured, if the terminated insured was eligible for continued group coverage under
sub. (2) (b) 2. and the spouse or dependent was covered under the group policy, have the right to convert to individual coverage under
sub. (4), unless
sub. (4) (d) applies.
632.897(3)(e)
(e) This subsection does not require coverage of expenses which are covered by medicare.
632.897(4)(a)(a) A terminated insured who elects conversion coverage under
sub. (2) (b) or
(3) (c) or
(d), the spouse or dependent of such a terminated insured, if the terminated insured is eligible under
sub. (2) (b) 2. and the spouse or dependent was covered under the group policy, and a terminated insured eligible under
sub. (9) and his or her dependents are entitled to have the insurer issue to them, without evidence of insurability, individual coverage reasonably similar to the terminated coverage under the group policy or individual policy. Any probationary or waiting periods required by such individual coverage shall be considered as being met to the extent such limitations have been met under the prior group policy or individual policy.
632.897(4)(b)
(b) The commissioner shall promulgate, by rule, 3 plans of individual coverage varying in degree of covered benefits to be offered as individual conversion policies. The insurer provides reasonably similar individual coverage if a person is offered his or her choice of the plans promulgated by the commissioner or is offered a high limit comprehensive plan of benefits regularly provided by the insurer for conversions and approved for this purpose by the commissioner. This paragraph does not apply if the policy being converted is a long-term care insurance policy.
632.897(4)(bm)
(bm) The commissioner shall specify, by rule, the minimum standards that an individual conversion policy must satisfy if the policy being converted is a long-term care insurance policy. An insurer provides reasonably similar individual coverage to a person converting a long-term care insurance policy if the person is offered an individual conversion policy that complies with the rules promulgated under this paragraph.
632.897(4)(c)
(c) If the first premium for conversion coverage is tendered to the insurer within 30 days after the notice of termination of group coverage, the individual conversion policy shall be issued with an effective date of the day following the termination of group or individual coverage.
632.897(4)(d)
(d) This subsection does not require individual coverage to be offered by an insurer offering group policies only. This subsection does not require an insurer to issue an individual conversion policy covering a terminated insured or his or her spouse or dependent if benefits provided or available to the covered person under
subds. 1. to
3., together with the converted policy's benefits, would result in overinsurance according to the insurer's standards for overinsurance, and these standards have been filed with and approved by the commissioner prior to use:
632.897(4)(d)1.
1. Similar benefits under another individual policy for which the terminated insured, spouse or dependent is eligible.
632.897(4)(d)2.
2. Similar benefits under a group policy for which the terminated insured, spouse or dependent is eligible.
632.897(4)(d)3.
3. Similar benefits for which the terminated insured, spouse or dependent is eligible by reason of any state or federal law.
632.897(5)
(5) A notification of the group continuation and individual conversion privileges shall be included in each certificate of coverage for a group policy as defined in
sub. (1) (c) 1.,
1m. or
3. and in any evidence of coverage provided by a group policy as defined in
sub. (1) (c) 2.
632.897(6)
(6) If the terminated insured elects to continue group coverage as provided in this section, the insurer may require conversion to individual coverage by the terminated insured and his or her spouse and dependents 18 months after the terminated insured elects the group coverage except as provided in
s. 103.10 (9) (d). The conditions, rights and procedures governing conversion under
sub. (4) (a) apply to this conversion.
632.897(8)
(8) Premium payments for continued group coverage required under this section shall be paid to the employer. The employer shall collect, and the insurer shall bill the employer for, those premiums. The insurer shall charge the claims experience of individuals covered under continued group coverage against the claims experience of the employer. An insurer is not required to issue a new certificate of insurance to an individual obtaining continued group coverage under this section.
632.897(9)(a)(a) No individual policy which provides coverage to the spouse of the insured may contain a provision for termination of coverage for the spouse solely as a result of a break in their marital relationship except by reason of the entry of a judgment of divorce or annulment of their marriage.
632.897(9)(b)
(b) Every individual policy which contains a provision for the termination of coverage of the spouse of the insured upon divorce or annulment shall contain a provision to the effect that upon divorce or annulment the former spouse has the right to obtain individual coverage under
sub. (4) and that coverage of the former spouse shall continue until he or she is notified of that right in accordance with
par. (c) if the premium for the coverage continues to be paid by or on behalf of the former spouse. This individual coverage shall provide to the former spouse the option to include dependent children previously covered.
632.897(9)(c)
(c) When the insurer is notified that the coverage of a spouse may be terminated because of a divorce or annulment, the insurer shall provide the former spouse written notification of the right to obtain individual coverage under
sub. (4), the premium amounts required and the manner, place and time in which premiums may be paid. This notice shall be given not less than 30 days before the former spouse's coverage would otherwise terminate. The premium shall be determined in accordance with the insurer's table of premium rates applicable to the age and class of risk of every person to be covered and to the type and amount of coverage provided. If the former spouse tenders the first monthly premium to the insurer within 30 days after the notice provided by this paragraph,
sub. (4) shall apply and the former spouse shall receive individual coverage commencing immediately upon termination of his or her coverage under the insured's policy.
632.897(10)(a)(a) No group policy or individual policy which provides coverage to dependent children of the group member or insured may deny eligibility for coverage to any child, or set a premium for any child which is different from that which is set for other dependent children, based solely on any of the following:
632.897(10)(a)1.
1. The fact that the child does not reside with the group member or insured or is dependent on another parent rather than the group member or insured.
632.897(10)(a)2.
2. The proportion of the child's support provided by the group member or insured.
632.897(10)(a)3.
3. The fact that the group member or insured does not claim the child as an exemption for federal income tax purposes under
26 USC 151 (c) (1) (B), or as an exemption for state income tax purposes under
s. 71.07 (8) (b) or under the laws of another state, if a court order under
s. 767.25 (4m) or the laws of another state assigns responsibility for the child's health care expenses to the group member or insured.
632.897(10)(a)5.
5. The fact that the child resides outside the insurer's geographical service area.
632.897(10)(am)
(am) If a court orders an individual to provide coverage for health care expenses for a child of the individual and the individual is eligible for family coverage under a group policy or individual policy, the insurer shall do all of the following:
632.897(10)(am)1.
1. Provide family coverage under the group policy or individual policy for the individual's child, if eligible for coverage, without regard to any enrollment period restrictions that may apply under the policy.
632.897(10)(am)2.
2. Provide family coverage under the group policy or individual policy for the individual's child, if eligible for coverage, upon application by the individual, the child's other parent, the department of workforce development or the county child support agency under
s. 59.53 (5).
632.897(10)(am)3.
3. After the child is covered under the group policy or individual policy, and as long as the individual is eligible for family coverage under the policy, continue to provide coverage for the child unless the insurer receives satisfactory written evidence that the court order is no longer in effect or that the child has coverage under another group policy or individual policy that provides comparable health care coverage.
632.897(10)(b)
(b) Paragraphs (a) and
(am) do not prohibit an insurer from determining the eligibility of a group member's or insured's child for coverage under the group policy or individual policy, or the premium for that coverage, based on factors that are not prohibited by
par. (a) 1. to
5. and that the insurer applies generally to determine the eligibility of children for coverage, and the premium for coverage, under the group policy or individual policy.
632.897(10)(bf)
(bf) If an insurer provides coverage under a group policy or an individual policy for a child of a group member or an insured who is not the custodial parent of the child, the insurer shall do all of the following:
632.897(10)(bf)1.
1. Provide to the custodial parent of the child information related to the child's enrollment.
632.897(10)(bf)2.
2. Permit the custodial parent of the child, a health care provider that provides services to the child or the department of health and family services to submit claims for covered services without the approval of the parent who is the group member or insured.
632.897(10)(bf)3.
3. Pay claims directly to the health care provider, the custodial parent of the child or the department of health and family services, as appropriate.
632.897(10)(c)
(c) This subsection applies to any group policy that would otherwise be exempt under
s. 600.01 (1) (b) 3. if at least 25 of the certificate holders or insureds are residents of this state.
632.897 Cross-reference
Cross-reference: See s.
49.45 (20) concerning exemption from continuation of group coverage.
632.897 Cross-reference
Cross Reference: See also ss.
Ins 3.41,
3.43,
3.44, and
6.51, Wis. adm. code.
632.897 Annotation
The federal employee retirement income security act (ERISA) preempts any state law that relates to employee benefit plans. General Split Corp. v. Mitchell,
523 F. Supp. 427 (1981).
632.897 Annotation
Wisconsin health insurance continuation/conversion law. Michal, WBB February 1982.
632.899
632.899
Medical savings accounts study. If the federal government enacts legislation providing for a federal income tax exemption for amounts deposited in a medical savings account and for any interest, dividends or other gain that accrues in the account if redeposited in the account, the commissioner shall conduct a study, to be completed within 4 years after the enactment of the federal legislation, of individuals and groups that had coverage under a high cost-share health plan, as defined in s.
632.898 (1) (c), 1995 stats., and that terminated that coverage in order to enroll in a health benefit plan that was not a high cost-share health plan, as defined in s.
632.898 (1) (c), 1995 stats. The commissioner shall submit a report of all findings, conclusions and recommendations to the appropriate standing committees in the manner provided under section
13.172 (3) of the statutes.
632.899 History
History: 1997 a. 27.
FRATERNAL INSURANCE
Subch. VII of ch. 632 Cross-reference
Cross Reference: See also ch.
Ins 1, Wis. adm. code.
632.91
632.91
Definition. In this subchapter:
632.91(1)
(1) "Insured employee" means an employee of a fraternal or of a subsidiary or other affiliate of a fraternal who is provided insurance benefits by the fraternal under
s. 614.10 (2) (c) 2. but is not a member of the fraternal.
632.91(2)
(2) "Owner" means the owner of a policy or certificate issued by a fraternal in accordance with
s. 614.10.
632.93
632.93
The fraternal contract. 632.93(1)
(1)
Issuance of certificate. A fraternal shall issue to each owner a policy or certificate specifying the benefits provided and containing at least in substance all sections of the laws of the fraternal which might result in the termination of coverage or the reduction of benefits. The policy or certificate, any riders or endorsements attached thereto, the laws of the fraternal, and the application and declarations made in connection therewith and signed by the applicant, constitute the agreement between the fraternal and the owner, and the policy or certificate shall so state.
632.93(2)
(2) Changes in laws of fraternals. Except as provided in
s. 614.24 (1m), any changes in the laws of a fraternal made subsequent to the issuance of a policy or certificate bind the owner and any beneficiary under the policy or certificate as if they had been in force at the time of the application, so long as they do not destroy or diminish benefits promised in the policy or certificate.
632.93(3)
(3) Proof of terms. Copies of any documents mentioned in
subs. (1) and
(2), certified by the secretary or corresponding officer of the fraternal, are evidence of the terms and conditions of the contract.
632.93(5)
(5) Grace period. Every fraternal certificate shall contain a provision entitling the owner to a grace period of not less than one month, or 30 days at the fraternal's option, for the payment of any premium due except the first, during which the death benefit shall continue in force. A fraternal may specify in the grace period provision that the overdue premium will be deducted from the death benefit in the event of death before it is paid.
