424.401 History
History: 1985 a. 256;
2013 a. 230.
424.402
424.402
Insurance cancellation credit or payment. 424.402(1)(1)
Any customer who cancels insurance or a service contract under s.
424.304 or
424.401 shall receive one of the following:
424.402(1)(a)
(a) A credit against the balance of the customer's obligation or account in the amount of the insurance premiums or service contract charges plus that portion of the finance charge attributable to the insurance premiums or service contract charges.
424.402(1)(b)
(b) A payment in the amount of the full amount of the insurance premiums or service contract charges, which amount shall continue to be part of the customer's obligation, if the creditor offers and the customer elects this option.
424.402(2)
(2) With respect to the application of a credit under sub.
(1) (a) to a customer's obligation for a consumer credit transaction other than one pursuant to an open-end credit plan, a merchant shall do one of the following:
424.402(2)(a)
(a) If the obligation is for a consumer credit transaction other than a precomputed consumer loan, apply the credit in one of the following ways:
424.402(2)(a)1.
1. First against the final installment due on the customer's obligation and then to the preceding installments in the reverse order in which they are due.
424.402(2)(a)2.
2. Against the balance of the customer's obligation and proportionately reduce the amount of each remaining installment.
424.402(2)(b)
(b) If the obligation is for a precomputed consumer loan, apply the credit against the balance of the customer's obligation, compute and apply a refund of the finance charge, less the portion included in the credit, in the manner described in s.
422.209 (2) as of the date of the loan or the nearest scheduled installment due date, and thereafter charge interest at a rate not to exceed the annual percentage rate of finance charge which was disclosed to the customer when the loan was made.
424.402(3)
(3) If a credit under sub.
(1) (a) is applied to a precomputed consumer loan, the finance charge resulting after application of the credit shall be the finance charge for the precomputed consumer loan, but the cancellation shall not otherwise alter the customer's obligation for the precomputed consumer loan.
424.402(4)
(4) A contract between an insurer and a creditor may not provide for a refund to the creditor upon cancellation by a customer under s.
424.304 or
424.401 in an amount less than the amount of the insurance premiums that the creditor must credit to the customer's account or pay to the customer under sub.
(1).
424.402 History
History: 1985 a. 256.
INSURANCE PRACTICES
424.501
424.501
False, misleading or deceptive insurance solicitation. 424.501(1)(1)
A creditor may not solicit or offer for sale any insurance product in connection with a consumer credit transaction in any manner that is false, misleading or deceptive or that omits to state material information with respect to the insurance or the consumer credit transaction that is necessary to make the solicitation or offer not false, misleading or deceptive.
424.501(2)
(2) It is not a violation of sub.
(1) to use printed materials or forms that have been approved for use by the office of the commissioner of insurance.
424.501 History
History: 1985 a. 256.
424.502
424.502
Insurance commissions; limitations. A creditor or insurer may not pay to an employee of the creditor who participates in the processing of consumer credit transactions any commission or bonus that exceeds an amount equal to 25 percent of the employee's annual earnings for the sale of insurance in connection with those consumer credit transactions. Insurance does not include a warranty plan for which the commissioner of insurance has issued a limited certificate of authority pursuant to rule promulgated under s.
600.01 (1) (b) 5. 424.502 History
History: 1985 a. 256.
ADMINISTRATION
424.601
424.601
Cooperation between administrator and commissioner of insurance. The administrator and the commissioner of insurance shall consult and assist one another in maintaining compliance with this chapter. They may jointly or severally pursue investigations, prosecute suits and take other official action, as may seem to them appropriate, if either of them is otherwise empowered to take the action. If the administrator is informed of a violation or suspected violation by an insurer of this chapter, or of chs.
600 to
646, rules and regulations of this state, the administrator shall advise the commissioner of insurance of the circumstances, and the commissioner of insurance may act under the laws of this state.
424.601 History
History: 1971 c. 239;
1973 c. 3;
1977 c. 339 s.
43;
1979 c. 89;
1985 a. 256 s.
14; Stats. 1985 s. 424.601.
424.602
424.602
Administrative action of commissioner of insurance. To the extent that the commissioner of insurance's responsibility under this chapter requires, the commissioner shall issue rules with respect to insurers and with respect to refunds (s.
424.205), forms, schedules of premium rates and charges (s.
424.209), and the commissioner's approval or disapproval thereof and, in case of violation, may make an order for compliance.
424.602 History
History: 1971 c. 239;
1985 a. 256 s.
16; Stats. 1985 s. 424.602;
1991 a. 316.
