Effective date text 2. Conducting periodic reviews of its records that are reasonably designed to assist in detecting and preventing violations of this section.
Effective date text (b) A general agent or independent agency either shall adopt a system established by an insurer to supervise recommendations of its insurance intermediaries that is reasonably designed to achieve compliance with this section, or shall establish and maintain such a system, which shall include at least all of the following:
Effective date text 1. Maintaining written procedures.
Effective date text 2. Conducting periodic reviews of records that are reasonably designed to assist in detecting and preventing violations of this section.
Effective date text (c) An insurer may contract with a 3rd party, which may be a general agent or independent agency, to establish and maintain a system of supervision as required under par. (a) with respect to insurance intermediaries under contract with or employed by the 3rd party.
Effective date text (d) An insurer shall make reasonable inquiry to ensure that any 3rd party with which the insurer contracts under par. (c) is performing the functions required under par. (a) and shall take such action as is reasonable under the circumstances to enforce the contractual obligation to perform the functions. An insurer may comply with its obligation to make reasonable inquiry in all of the following ways:
Effective date text 1. The insurer annually obtains from a senior manager of the 3rd party who has responsibility for the delegated functions a representation that the 3rd party is performing the required functions and that the senior manager has a reasonable basis for making the representation.
Effective date text 2. The insurer, based on reasonable selection criteria, periodically selects 3rd parties contracting under par. (c) for reviews to determine whether the 3rd parties are performing the required functions. The insurer shall perform those procedures to conduct the reviews that are reasonable under the circumstances.
Effective date text (e) An insurer that contracts with a 3rd party under par. (c) and that complies with the supervisory requirement under par. (d) satisfies its responsibilities under par. (a) as to insurance intermediaries under contract with or employed by the 3rd party.
Effective date text (f) An insurer is not required under par. (a), and a general agent or independent agency is not required under par. (b), to do any of the following:
Effective date text 1. Review, or provide for the review of, all insurance intermediary solicited transactions.
Effective date text 2. Include in its system of supervision an insurance intermediary's recommendations made to consumers of products other than annuities offered by the insurer, general agent, or independent agency.
Effective date text (g) A general agent or independent agency contracting with an insurer under par. (c) shall promptly, upon request by the insurer under par. (d), provide a representation as described in par. (d) 1. or give a clear statement that it is unable to meet the representation criteria.
Effective date text (h) No person may provide a representation under par. (d) 1. unless the person satisfies all of the following:
Effective date text 1. The person is a senior manager with responsibility for the delegated functions.
Effective date text 2. The person has a reasonable basis for making the representation.
628.347(3m) (3m)Prohibited acts of intermediary. An insurance intermediary may not dissuade, or attempt to dissuade, a consumer from doing any of the following:
628.347(3m)(a) (a) Truthfully responding to an insurer's request for confirmation of suitability information.
628.347(3m)(b) (b) Filing a complaint.
628.347(3m)(c) (c) Cooperating with the investigation of a complaint.
Effective date note NOTE: Sub. (3m) is created eff. 5-1-11 by 2009 Wis. Act 343.
628.347(4) (4)Financial Industry Regulatory Authority rules.
628.347(4)(a)(a) Subject to pars. (b) and (c), sales made in compliance with FINRA requirements pertaining to suitability and supervision of annuity transactions satisfy the requirements under this section. Nothing in this subsection, however, limits the commissioner's ability to enforce this section, including conducting any investigation necessary for that enforcement.
628.347(4)(b) (b) For par. (a) to apply, an insurer must do all of the following:
628.347(4)(b)1. 1. Monitor the FINRA member broker-dealer using information collected in the normal course of an insurer's business.
628.347(4)(b)2. 2. Provide to the FINRA member broker-dealer information and reports that are reasonably appropriate to assist the FINRA member broker-dealer to maintain its supervision system.
628.347(4)(c) (c) This subsection applies to FINRA broker-dealer sales of variable annuities and fixed annuities if the suitability and supervision are similar to those applied to variable annuity sales.
Effective date note NOTE: Sub. (4) is shown as affected eff. 5-1-11 by 2009 Wis. Act 343. Prior to 5-1-11 it reads:
Effective date text (4) National Association of Securities Dealers Conduct Rules. Compliance with the National Association of Securities Dealers Conduct Rules pertaining to suitability satisfies the requirements under sub. (2) for the recommendation of variable annuities. Nothing in this subsection, however, limits the commissioner's ability to enforce this section.
628.347(4m) (4m)Insurance intermediary training.
628.347(4m)(a)(a) An insurance intermediary may not solicit the sale of an annuity product unless the insurance intermediary has adequate knowledge of the product to recommend the annuity and the insurance intermediary is in compliance with the insurer's standards for product training. An insurance intermediary may rely on insurer-provided product-specific training standards and materials to comply with this paragraph.
628.347(4m)(b)1.a.a. An insurance intermediary who engages in the sale of annuity products shall complete a one-time training course approved by the commissioner and provided by an education provider approved by the commissioner.
628.347(4m)(b)1.b. b. Insurance intermediaries who hold a life insurance line of authority on May 1, 2011, and who desire to sell annuities must complete the requirements of this paragraph within 6 months after May 1, 2011. Individuals who obtain a life insurance line of authority on or after May 1, 2011, may not engage in the sale of annuities until they have completed the annuity training course required under this paragraph.
628.347(4m)(b)2. 2. The minimum length of the training required under this paragraph shall be sufficient to qualify for at least 4 continuing education credits, but may be longer.
628.347(4m)(b)3. 3. The training required under this paragraph shall include information on all of the following topics:
628.347(4m)(b)3.a. a. The types of annuities and various classifications of annuities.
628.347(4m)(b)3.b. b. Identification of the parties to an annuity.
628.347(4m)(b)3.c. c. How fixed, variable, and indexed annuity contract provisions affect consumers.
628.347(4m)(b)3.d. d. The application of income taxation of qualified and non-qualified annuities.
628.347(4m)(b)3.e. e. The primary uses of annuities.
628.347(4m)(b)3.f. f. Appropriate sales practices and replacement and disclosure requirements.
628.347(4m)(b)4. 4. Providers of annuity training courses intended to comply with this paragraph shall cover all of the topics listed under subd. 3. and may not present any marketing information or provide training on sales techniques or provide specific information about a particular insurer's products. Additional topics may be offered in conjunction with and in addition to those listed under subd. 3.
628.347(4m)(b)5. 5. A provider of an annuity training course intended to comply with this paragraph shall register as a continuing education provider in this state and comply with the rules and guidelines applicable to insurance intermediary continuing education courses as set forth in rules of the office governing intermediary continuing education requirements.
628.347(4m)(b)6. 6. Annuity training courses may be conducted and completed by classroom or self-study methods in accordance with rules of the office governing intermediary continuing education requirements.
628.347(4m)(b)7. 7. Providers of annuity training shall comply with the reporting requirements and shall issue certificates of completion in accordance with rules of the office governing intermediary continuing education requirements.
628.347(4m)(b)8. 8. Satisfaction of the training requirements of another state that are substantially similar to the requirements of this paragraph satisfies the training requirements of this paragraph in this state.
628.347(4m)(b)9. 9. An insurer shall verify that an insurance intermediary has completed the annuity training course required under this paragraph before allowing the intermediary to sell an annuity product for that insurer. An insurer may satisfy its responsibility under this subdivision by obtaining certificates of completion of the training course or obtaining reports provided by commissioner-sponsored database systems or vendors or from a reasonably reliable commercial database vendor that has a reporting arrangement with approved insurance education providers.
Effective date note NOTE: Sub. (4m) is created eff. 5-1-11 by 2009 Wis. Act 343.
628.347(5) (5)Compliance; remedial measures. An insurer is responsible for compliance with this section. If a violation occurs, either because of the action or inaction of the insurer or its insurance intermediary, the commissioner may do any of the following:
Effective date note NOTE: Sub. (5) (intro.) is shown as amended eff. 5-1-11 by 2009 Wis. Act 343. Prior to 5-1-11 it reads:
Effective date text (5) Remedial measures. The commissioner may do any of the following:
628.347(5)(a) (a) Order an insurer to take reasonably appropriate corrective action for any consumer harmed by a violation of this section by the insurer or the insurer's insurance intermediary.
628.347(5)(b) (b) Order an insurance intermediary to take reasonably appropriate corrective action for any consumer harmed by a violation of this section by the insurance intermediary.
628.347(5)(c) (c) Order a general agent or independent agency that employs or contracts with an insurance intermediary to sell, or solicit the sale of, annuities to consumers to take reasonably appropriate corrective action for any consumer harmed by a violation of this section by the insurance intermediary.
628.347(5)(d) (d) Impose any appropriate penalties or sanctions.
Effective date note NOTE: Par. (d) is created eff. 5-1-11 by 2009 Wis. Act 343.
628.347(6) (6)Penalties; mitigation.
628.347(6)(a)(a) Any person who violates this section is subject to the penalties provided under s. 601.64, suspension or revocation of a license or certificate of authority, and an order under s. 601.41 (4).
628.347(6)(c) (c) The commissioner may by rule provide for the reduction or elimination of a penalty under par. (a) for a violation of this section if corrective action is taken for the consumer promptly after the violation is discovered or the violation is not part of a pattern or practice.
628.347(7) (7)Record keeping.
628.347(7)(a)(a) An insurer and an insurance intermediary, including a general agent and an independent agency, shall maintain, or be able to make available to the commissioner, records of the information collected from a consumer and other information used in making a recommendation that was the basis for an insurance transaction for 6 years after the insurance transaction is completed by the insurer, except as otherwise permitted by the commissioner by rule. An insurer may, but is not required to, maintain records on behalf of an insurance intermediary, including a general agent and an independent agency.
628.347(7)(b) (b) Records that are required to be maintained under this section may be maintained in paper, photographic, microprocess, magnetic, or electronic media or by any process that accurately reproduces the actual document.
Effective date note NOTE: Sub. (7) is shown as affected eff. 5-1-11 by 2009 Wis. Act 343. Prior to 5-1-11 it reads:
Effective date text (7) Record keeping. An insurer and an insurance intermediary, including a general agent and an independent agency, shall maintain, or be able to make available to the commissioner, records of the information collected from a consumer and other information used in making a recommendation that was the basis for an insurance transaction for 6 years after the insurance transaction is completed by the insurer, except as otherwise permitted by the commissioner by rule. An insurer may, but is not required to, maintain records on behalf of an insurance intermediary, including a general agent and an independent agency.
628.347(8) (8)Exemptions. This section does not apply to any of the following:
628.347(8)(a) (a) Direct response solicitations in which no recommendation is made based on information collected from the consumer.
628.347(8)(b) (b) Recommendations related to contracts used to fund any of the following:
628.347(8)(b)1. 1. An employee pension or welfare benefit plan that is covered by the federal Employee Retirement and Income Security Act.
628.347(8)(b)2. 2. A plan described in section 401 (a) or (k), 403 (b), or 408 (k) or (p) of the Internal Revenue Code, if the plan is established or maintained by an employer.
628.347(8)(b)3. 3. A government or church plan as defined in section 414 of the Internal Revenue Code, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax exempt organization under section 457 of the Internal Revenue Code.
628.347(8)(b)4. 4. A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.
628.347(8)(b)5. 5. A settlement or assumption of liability associated with personal injury litigation or any dispute or claim resolution process.
628.347(8)(b)6. 6. A formal prepaid funeral or burial contract.
628.347 History History: 2003 a. 261; 2007 a. 168; 2009 a. 343.
628.348 628.348 Sale of long-term care insurance.
628.348(1) (1)Training requirement. On and after January 1, 2009, no person may solicit, negotiate, or sell long-term care insurance unless the person is a licensed intermediary and he or she has completed the initial training portion of the training program under s. 49.45 (31) (c) and completes the ongoing training under s. 49.45 (31) (c) every 24 months after completing the initial training.
628.348(2) (2)Insurer verification. Insurers providing long-term care insurance shall do all of the following:
628.348(2)(a) (a) Obtain from intermediaries selling long-term care insurance on behalf of the insurer verification that the intermediary is in compliance with the training requirements under sub. (1).
628.348(2)(b) (b) Maintain records related to the verifications obtained under par. (a).
628.348(2)(c) (c) Make the records under par. (b) available to the commissioner upon request.
628.348 History History: 2007 a. 20, 226.
628.35 628.35 Prohibition of exclusive contracts. No insurer may make, enforce or participate in any contract or other arrangement for exclusive services of a health care provider that prevents or materially inhibits any other insurer authorized to do business in this state from entering into a contract or other arrangement with any health care provider of services that the other insurer has contracted to supply or for which it has promised indemnity under its insurance contracts, unless:
628.35(1) (1) The health care provider is an individual who is an employee of the insurer;
628.35(2) (2) The health care provider is a corporation owned by the insurer;
628.35(3) (3) The health care provider uses the insurer's name under a franchise arrangement; or
628.35(4) (4) The case is within a class for which the commissioner by rule establishes an exception after a finding that the contract or other arrangement does not seriously impede the effective operation of a legitimate insurance business by other insurers.
628.35 History History: 1975 c. 223, 371, 422.
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This is an archival version of the Wis. Stats. database for 2009. See Are the Statutes on this Website Official?