New Home State: requires nonresident producers to provide certification from new home state.
Prelicensing Credits: requires “banking” of prelicensing credits.
Agent Licensing Software: SIRCON.
New Home State: requires nonresident producers to provide certification from new home state.
Prelicensing Credits: has a provision similar to Wisconsin’s current provision providing for “banking” of prelicensing credits.
Minnesota: the agent licensing provisions are generally found in Minn. Stat. §§ 60K.30 to 60K.56.
Agent Licensing Software: SIRCON.
New Home State: requires nonresident producers to provide certification from new home state.
Prelicensing Credits: OCI’s review did not find any provisions addressing the “banking” of prelicensing credits.
8.
A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:The OCI reviewed NAIC model acts, in particular the Producer Licensing Model Act. In addition, OCI reviewed SBS’s capabilities to ensure that changes are aligned with and utilize the technology and services offered by SBS.
9.
Any analysis and supporting documentation that OCI used in support of OCI’s determination of the rule’s effect on small businesses under s. 227.114: The proposed rule will likely have a positive impact on small businesses, including insurance agencies, pre-licensing and continuing education providers, and small insurance companies by reducing fees and administrative costs, eliminating unnecessary requirements, and streamlining processes. First, the proposed rule will eliminate the banking of prelicensing credits by education providers, which may reduce potential fees to applicants and providers for uploading the credits to SBS. In addition, the proposed rule will also eliminate the need for providers to collect the full social security number of prelicensing students, which can be costly to secure.
The proposed rule may also positively impact small business by reducing administrative costs through more effective and efficient processes. One of the key changes under the proposed rule is utilizing electronic means as the primary form of communication, which is faster and less expensive than providing paper copies through the mail. Finally, the switch to SBS will also allow small businesses to license new agents in less than 24 hours as compared to 13 days prior to the switch to SBS, and processing fees charged on applications are $1 less than the previous vendor charged.
The proposed rule allows for the appointment of agents to be processed online. While this is quicker and more efficient for companies, the NIPR charges a small administrative fee for online processing. Smaller insurers, such as town mutual insurers, will process their agent appointments online and pay the small administrative processing fee. OCI believes the financial impact will be minimal as town mutual insurers generally have very few appointed agents.
10.
Private Sector Fiscal Analysis.This rule change will have no significant effect on the private sector regulated by OCI.
11.
A description of the Effect on Small Business:This rule will have little or no effect on small businesses. Please see #9 for a detailed description of the proposed rule’s potential effect on small business.
12.
Agency contact person:or by contacting Karyn Culver, Paralegal, at:
Phone: (608) 267-9586
Address: 125 South Webster St – 2nd Floor, Madison WI 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
13.
Place where comments are to be submitted and deadline for submission: The deadline for submitting comments is 4:00 p.m. on April 30, 2019.
Mailing address:
Timothy L. Cornelius
Legal Unit - OCI Rule Comment for Rule Ins 06315
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
Timothy L. Cornelius
Legal Unit - OCI Rule Comment for Rule Ins 06315
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Email address:
Timothy L. Cornelius
The proposed rule changes are:
SECTION 1.
Ins 6.57 is amended to read:Ins 6.57 (1) Submission of an application for an intermediary-agent appointment request shall initiate the appointment of an agent in accordance with s. 628.11, Stats. The application shall be submitted to the office of the commissioner of insurance and entered in the OCI licensing system in a format specified by the commissioner appointment request shall be made in a manner prescribed by the commissioner within 15 days after the earlier of the date the agent contract is executed or the date the first insurance application is submitted and shall show the lines of authority being requested for that agent. An appointment is valid only for the lines of insurance requested. The effective date of a valid appointment is the date on which the appointment request is submitted electronically in the format specified by the commissioner. The agent validation report is a computer-generated report prepared by the office of the commissioner of insurance. Billing for the initial appointment shall be done annually at the same time and at the same rate as renewal appointments at the time of appointment. Section 1.
(a) If the reason for termination is one of the reasons listed as other criteria in s. Ins 6.59 (5) (d) or if the insurer has knowledge the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities listed in s. Ins 6.59 (5) (d), the insurer must submit complete explanations and documentation in writing to OCI within 30 days of the termination.
(b) If the insurer has knowledge of complaints received or problems experienced by the company intermediary or the intermediary’s agency involving company indebtedness, forgery, altering policies, fraud, misappropriation, misrepresentation, failure to promptly submit applications or premiums, or poor policyholder service involving that involved the intermediary being terminated, the insurer must submit complete explanations and documentation in writing to OCI within 30 days of the termination. This documentation need not prove violations, but should include any situation where possible violations exist. The Office of the Commissioner of Insurance will investigate these situations and take appropriate action based upon the investigation.
(c) The insurer or the authorized representative of the insurer shall promptly notify the insurance commissioner in writing if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the insurance commissioner under par. (a) or (b) had the insurer then known of its existence. Section 2.
Section 3.
(4) Fees applicable for listing of insurance agents under s. 628.11, Stats., are set forth by statute in s. 601.31 (1) (n), Stats.
Resident individual intermediary-agents . . . . $ 7.00
Nonresident individual intermediary-agents . . . . $ 24.00
Note: 2009 Wis. Act 28, section 3135, changed the minimum appointment fees to $ 16 for residents and $ 50 for non-residents.
