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 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 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)(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:
Effective date note NOTE: 628.347 (title) is shown as amended eff. 10-1-22 by 2021 Wis. Act 260. Prior to 10-1-22 it reads:
Effective date text 628.347 Suitability in annuity transactions.
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.
Effective date note NOTE: Par. (ac) is created eff. 10-1-22 by 2021 Wis. Act 260.
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.
Effective date note NOTE: Par. (ae) is created eff. 10-1-22 by 2021 Wis. Act 260.
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)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.
Effective date note NOTE: Par. (ag) is shown as affected eff. 10-1-22 by 2021 Wis. Act 260.
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.
Effective date note NOTE: Par. (ak) is created eff. 10-1-22 by 2021 Wis. Act 260.
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.
Effective date note NOTE: Par. (ar) is created eff. 10-1-22 by 2021 Wis. Act 260.
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.
Effective date note NOTE: Par. (aw) is created eff. 10-1-22 by 2021 Wis. Act 260.
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.
Effective date note NOTE: Par. (ax) is created eff. 10-1-22 by 2021 Wis. Act 260.
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.
Effective date note NOTE: Par. (b) is shown as amended eff. 10-1-22 by 2021 Wis. Act 260. Prior to 10-1-22 it reads:
Effective date text (b) “Recommendation" means advice provided by an insurance intermediary, or an insurer if no intermediary is involved, to an individual consumer that results in the purchase, exchange, or replacement of an annuity in accordance with that advice.
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(1)(e) (e) “Suitability information" means information that is reasonably appropriate to determine the suitability of a recommendation, including all of the following:
628.347(1)(e)2. 2. Annual income.
628.347(1)(e)3. 3. Financial situation and needs, including the financial resources used for the funding of the annuity.
628.347(1)(e)4. 4. Financial experience.
628.347(1)(e)5. 5. Financial objectives.
628.347(1)(e)6. 6. Intended use of the annuity.
628.347(1)(e)7. 7. Financial time horizon.
628.347(1)(e)8. 8. Existing assets, including investment and life insurance holdings.
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2019-20 Wisconsin Statutes updated through 2021 Wis. Act 267 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on September 15, 2022. Published and certified under s. 35.18. Changes effective after September 15, 2022, are designated by NOTES. (Published 9-15-22)