Chapter 628

628.34(14)(a) (a) No person may prepare, issue, request, or require a certificate of insurance or other document used for evidence of insurance to do any of the following:

628.34(14)(a)1. 1. Contain information concerning the policy referenced by the certificate of insurance or other document that is false, misleading, deceptive, unfairly discriminatory, or that otherwise violates public policy or law, as determined by the commissioner.

628.34(14)(a)2. 2. Purport to alter, amend, or extend coverage provided by the policy referenced by the certificate of insurance or other document.

628.34(14)(a)3. 3. Alter the terms and conditions of any notice requirement in the policy. A person is entitled to notice of cancellation, nonrenewal, or any material change to the policy, or to any similar notice concerning the policy only as provided in the policy or an endorsement.

628.34(14)(b) (b) No person may alter a certificate of insurance or other document used for evidence of insurance after it is issued.

628.34(14)(c) (c) No certificate of insurance or other document used for evidence of insurance may warrant that the policy referenced by the certificate of insurance or other document fulfills the insurance or indemnification requirements of a specific contract.

628.34(14)(d) (d)

628.34(14)(d)1. 1. Except as provided in subd. 2., this subsection applies to any certificate of insurance or other document used for evidence of insurance that is issued by an insurer as evidence of property or casualty insurance.

628.34(14)(d)2. 2. This subsection does not apply to any of the following:

628.34(14)(d)2.a. a. A policy or endorsement.

628.34(14)(d)2.b. b. A binder.

628.34(14)(d)2.c. c. Evidence of motor vehicle liability insurance required under s. 344.62 (2).

628.34(15) (15) Travel insurance.

628.34(15)(a) (a) In this subsection:

628.34(15)(a)1. 1. “Blanket travel insurance” has the meaning given in s. 632.977 (1) (a).

628.34(15)(a)2. 2. “Limited lines travel insurance producer” has the meaning given in s. 632.977 (1) (e).

628.34(15)(a)3. 3. “Travel insurance” has the meaning given in s. 632.977 (1) (i).

628.34(15)(a)4. 4. “Travel retailer” has the meaning given in s. 632.977 (1) (k).

628.34(15)(b) (b) No person may market blanket travel insurance as free.

628.34(15)(c) (c) No person may offer or sell a travel insurance policy that could never result in payment of any claims for any insured under the policy.

628.34(15)(d) (d) When travel insurance is marketed to a prospective purchaser through the Internet site of the insurer or an aggregator Internet site that provides access to information on insurance products from more than one insurer, the inclusion on the Internet site of a summary of the travel insurance policy’s coverage does not violate this section if the summary is accurate and the prospective purchaser has access to the policy’s full provisions through electronic means.

628.34(15)(e) (e) When a person purchases a trip or travel package to a destination jurisdiction that requires insurance coverage, a travel retailer or limited lines travel insurance producer supplying the trip or travel package does not violate this section by requiring that the person, as a condition of purchasing the trip or travel package, choose between purchasing the required coverage through the travel retailer or limited lines travel insurance producer or agreeing to obtain and provide proof of the required coverage prior to departure.

628.34 History History: 1975 c. 371, 421; 1979 c. 89, 109, 313, 355; 1991 a. 279; 1995 a. 289; 1997 a. 27, 237; 2009 a. 275; 2011 a. 224; 2017 a. 241; 2019 a. 185; 2021 a. 111.

628.34 Cross-reference Cross-reference: See also ss. Ins 2.07, 3.27, 6.19 6.67, 6.68, and 6.90, 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 commissioner of insurance’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) (1) In this section:

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)1. 1. An intermediary whose license is revoked under s. 628.10 (2) (b) or surrendered under a stipulation.

628.345(1)(b)2. 2. An affiliate of an intermediary under subd. 1.

628.345(1)(b)3. 3. A person in which an intermediary under subd. 1. has, directly or indirectly, more than a 10 percent ownership interest.

628.345(1)(b)4. 4. An agent or employee of a person described in subd. 1., 2. or 3.

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.

628.345(4) (4) 

628.345(4)(a) (a) Except as provided in par. (b), this section applies to all of the following:

628.345(4)(a)1. 1. A disciplined person for whom the disciplinary period is in effect on or after January 1, 1997.

628.345(4)(a)2. 2. That portion of a disciplinary period in effect on or after January 1, 1997, that occurs on and after January 1, 1997.

628.345(4)(b) (b) This section does not apply to an obligation incurred before January 1, 1997, for the payment of consideration to, or expenses of, a disciplined person related to services performed or information provided during the disciplinary period of the disciplined person but before January 1, 1997.

628.345 History History: 1995 a. 396.

628.347 628.347 Best interest in annuity transactions.

628.347(1) (1) Definitions. In this section:

628.347(1)(a) (a) “Annuity” means an annuity that is an insurance product that is individually solicited, whether the product is classified as an individual or group annuity.

628.347(1)(ac) (ac) “Cash compensation” means any discount, concession, fee, service fee, commission, sales charge, loan, override, or cash benefit received in connection with the recommendation or sale of an annuity by an insurance intermediary from an insurer or other insurance intermediary or directly from the consumer.

628.347(1)(ae) (ae) “Comparable standards” means:

628.347(1)(ae)1. 1. With respect to broker-dealers and registered representatives of broker-dealers, the applicable rules of the federal securities and exchange commission and FINRA pertaining to best interest obligations and supervision of annuity recommendations and sales, including Regulation Best Interest and any amendments or successor regulations thereto.

628.347(1)(ae)2. 2. With respect to investment advisers registered under federal or state securities law and investment adviser representatives, the fiduciary duties and other requirements imposed on the investment adviser or investment adviser representative by contract or under the Investment Advisers Act of 1940 or applicable state securities law, including the federal form ADV and applicable interpretations.

628.347(1)(ae)3. 3. With respect to plan fiduciaries and fiduciaries described in par. (ak) 3., the duties, obligations, prohibitions, and other requirements attendant to such status under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code.

628.347(1)(ag) (ag) “Consumer profile information” means information that is reasonably appropriate to determine whether a recommendation addresses the consumer’s financial situation, insurance needs, and financial objectives, including all of the following:

628.347(1)(ag)1. 1. Age.

628.347(1)(ag)2. 2. Annual income.

628.347(1)(ag)3. 3. Financial situation and needs, including debts and other obligations.

628.347(1)(ag)4. 4. Financial experience.

628.347(1)(ag)5. 5. Financial objectives.

628.347(1)(ag)6. 6. Intended use of the annuity.

628.347(1)(ag)7. 7. Financial time horizon.

628.347(1)(ag)8. 8. Existing assets and financial products, including investment, annuity, and insurance holdings.

628.347(1)(ag)9. 9. Liquidity needs.

628.347(1)(ag)10. 10. Liquid net worth.

628.347(1)(ag)11. 11. Risk tolerance, including willingness to accept non-guaranteed elements in the annuity.

628.347(1)(ag)12. 12. Tax status.

628.347(1)(ag)13. 13. Insurance needs.

628.347(1)(ag)14. 14. Financial resources used to fund the annuity.

628.347(1)(ak) (ak) “Financial professional” means an insurance intermediary who is regulated and acting as any of the following:

628.347(1)(ak)1. 1. A broker-dealer registered under federal or state securities law or a registered representative of such a broker-dealer.

628.347(1)(ak)2. 2. An investment adviser registered under federal or state securities law or an investment adviser representative associated with such an investment adviser.

628.347(1)(ak)3. 3. A plan fiduciary, as defined in 29 USC 1002 (21), or a fiduciary, as defined in section 4975 (e) (3) of the Internal Revenue Code.

628.347(1)(am) (am) “FINRA” means the Financial Industry Regulatory Authority or a succeeding agency.

628.347(1)(ar) (ar) “Material conflict of interest” means a financial interest of an insurance intermediary in the sale of an annuity that a reasonable person would expect to influence the impartiality of a recommendation, but does not include cash compensation or noncash compensation.

628.347(1)(aw) (aw) “Noncash compensation” means any form of compensation that is not cash compensation, including health insurance, office rent, office support, and retirement benefits.

628.347(1)(ax) (ax) “Non-guaranteed elements” means the premiums, credited interest rates, benefits, values, dividends, noninterest based credits, and charges, along with the elements of formulas used to determine any of these items, that are subject to company discretion and are not guaranteed at issue. An element is a non-guaranteed element if any non-guaranteed elements are used in its calculation. For purposes of this subsection, credited interest rates include any bonus.

628.347(1)(b) (b) “Recommendation” means advice provided by an insurance intermediary, or an insurer if no intermediary is involved, to an individual consumer that results in, or was intended to result in, the purchase, exchange, or replacement of an annuity in accordance with that advice, except that “recommendation” does not include general communication to the public, generalized customer service assistance or administrative support, general educational information and tools, prospectuses, and other product and sales materials.

628.347(1)(d) (d) “Replacement” means a transaction in which a new annuity is to be purchased and it is known, or should be known to the proposing insurance intermediary, or to the proposing insurer if no intermediary is involved, that by reason of the transaction an existing policy or contract has been or is to be any of the following:

628.347(1)(d)1. 1. Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer, or otherwise terminated.

628.347(1)(d)2. 2. Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values.

628.347(1)(d)3. 3. Amended so as to effect either a reduction in benefits or a reduction in the term for which coverage would otherwise remain in force or for which benefits would otherwise be paid.

628.347(1)(d)4. 4. Reissued with a reduction in cash value.

628.347(1)(d)5. 5. Used in a financed purchase.

628.347(2) (2) Best interest obligations.

628.347(2)(a) (a) When making a recommendation of an annuity, an insurance intermediary shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the financial interest of the intermediary or insurer ahead of the consumer’s interest. An insurance intermediary has acted in the best interest of the consumer if the intermediary has satisfied the care obligation under sub. (2b), the disclosure obligation under sub. (2c), the conflict of interest obligation under sub. (2d), and the documentation obligation under sub. (2e). The requirements under this subsection and subs. (2b) to (2e) create only a regulatory obligation and do not create a fiduciary obligation or relationship.

628.347(2)(b) (b) Any requirement applicable to an insurance intermediary under this subsection shall apply to every insurance intermediary who exercises material control or influence in the making of a recommendation and has received direct compensation as a result of the recommendation or sale, regardless of whether the intermediary has any direct contact with the consumer. Activities such as providing or delivering marketing or educational materials, product wholesaling or other back office product support, and conducting general supervision of an insurance intermediary do not, in and of themselves, constitute material control or influence.