CHAPTER 633
EMPLOYEE BENEFIT PLAN ADMINISTRATORS AND PRINCIPALS
633.04 Written agreement required.
633.05 Payment to administrator.
633.06 Examination and inspection of books and records.
633.07 Approval of advertising.
633.08 Underwriting responsibilities.
633.10 Payment of claims.
633.11 Claim adjustment compensation.
633.12 Notification required.
633.14 Issuance of license.
633.15 License; renewal, suspension, limitation, revocation, penalty.
633.17 Rule-making authority.
Ch. 633 Cross-reference
Cross-reference: See definitions in ss.
600.03 and
628.02.
Ch. 633 Cross-reference
Cross Reference: See also s.
Ins 8.20, Wis. adm. code.
633.01
633.01
Definitions. In this chapter:
633.01(1)
(1) "Administrator" means a person who directly or indirectly solicits or collects premiums or charges or otherwise effects coverage or adjusts or settles claims for a plan, but does not include the following persons if they perform these acts under the circumstances specified for each:
633.01(1)(a)
(a) An employer on behalf of its employees or the employees of a subsidiary or affiliated employer.
633.01(1)(c)
(c) A creditor on behalf of its debtor, if to obtain payment, reimbursement or other method of satisfaction from a plan for any part of a debt owed to the creditor by the debtor.
633.01(1)(d)
(d) A financial institution that is subject to supervision or regulation in performing these acts by federal or other state authorities.
633.01(1)(e)
(e) A company that issues credit cards and provides advances for, or collects premiums or charges from, its credit card holders, if the company does not adjust or settle claims.
633.01(1)(f)
(f) An attorney who adjusts or settles claims in the normal course of practice or employment as an attorney, if the attorney does not collect charges or premiums.
633.01(1)(g)
(g) An agent licensed in this state whose activities are limited to the sale of insurance.
633.01(1)(h)
(h) An insurer authorized to do an insurance business in this state if the insurer performs these acts in the normal course of its insurance business.
633.01(2)
(2) "Employee" means any of the following or a family member or dependent of any of the following:
633.01(2)(a)
(a) An active or retired wage or salary earner whose services are or were used by an employer.
633.01(3)
(3) "Insured" means an employee who is a resident of this state and who is covered under a plan.
633.01(4)
(4) "Plan" means an insured or wholly or partially self-insured employee benefit plan which by means of direct payment, reimbursement or other arrangement provides to one or more employees who are residents of this state benefits or services that include, but are not limited to, benefits for medical, surgical or hospital care, benefits in the event of sickness, accident, disability or death, or benefits in the event of unemployment or retirement.
633.01(5)
(5) "Principal" means a person, including an insurer, that uses the services of an administrator to provide a plan.
633.01 History
History: 1991 a. 39.
633.04
633.04
Written agreement required. An administrator may not administer a plan in the absence of a written agreement between the administrator and a principal. The administrator and principal shall each retain a copy of the written agreement for the duration of the agreement and for 5 years thereafter. The written agreement shall contain the following terms:
633.04(1)
(1) That the administrator and principal shall each retain a copy of the written agreement as provided under this section.
633.04(2)
(2) If a policy is issued to a trust, that the administrator shall retain a copy of the trust agreement for the duration of the trust agreement and for 5 years thereafter.
633.04(3)
(3) If the principal is an insurer, that payments to an administrator shall be treated as provided in
s. 633.05.
633.04(4)
(4) That the administrator shall maintain and retain books and records pertaining to a principal dating back 5 years at all times or until delivered to the principal by the administrator, with the right of examination and audit as provided in
s. 633.06 (1), and the right of inspection and any restrictions on the right of inspection, as provided in
s. 633.06 (2).
633.04(5)
(5) If the principal is an insurer, that advertising shall be approved as provided in
s. 633.07.
633.04(6)
(6) If the principal is an insurer, that the terms, as required by
s. 633.08, specify any underwriting responsibilities which the insurer has delegated to the administrator.
633.04(7)
(7) That funds shall be collected and received as provided in
s. 633.09 (1), that funds shall be paid and deposited as provided in
s. 633.09 (1), that fiduciary account records shall be maintained and provided as provided in
s. 633.09 (2), that interest shall be treated as provided in
s. 633.09 (3) or that other terms shall specify treatment of interest, that withdrawals for payments of claims are not permitted as provided in
s. 633.09 (4) (a), and that other withdrawals are permitted only as provided under
s. 633.09 (4) (b).
633.04(9)
(9) That compensation to an administrator shall be paid as provided in
s. 633.11.
633.04 History
History: 1991 a. 39.
633.05
633.05
Payment to administrator. If a principal is an insurer, payment to the administrator of a premium or charge by or on behalf of an insured is payment to the insurer, but payment of a return premium or claim by the insurer to the administrator is not payment to an insured until the payment is received by the insured. This section does not limit any right of the insurer against the administrator for failure to make payments to the insurer or an insured.
633.05 History
History: 1991 a. 39.
633.06
633.06
Examination and inspection of books and records. 633.06(1)(1) The commissioner may examine, audit or accept an audit of the books and records of an administrator as provided for examination of licensees under
s. 601.43 (1),
(3),
(4) and
(5), to be conducted as provided in
s. 601.44, and with costs to be paid as provided in
s. 601.45.
633.06(2)
(2) A principal that uses an administrator may inspect the books and records of the administrator, subject to any restrictions set forth in
ss. 146.81 to
146.835 and in the written agreement required under
s. 633.04, for the purpose of enabling the principal to fulfill its contractual obligations to insureds.
633.06 History
History: 1991 a. 39.
633.07
633.07
Approval of advertising. An administrator may not use any advertising for a plan underwritten by an insurer unless the insurer approves the advertising in advance.
