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. (5) No insurer shall accept business directly from any intermediary or enter into an agency contract with an intermediary unless that intermediary is a licensed agent appointed with that insurer within 15 days of the date the agent contract is executed or the first insurance application is submitted, and the appointment shall show the lines of authority being requested for that agent.
(6) No intermediary shall submit an application for insurance directly to an insurer or solicit insurance on behalf of a particular insurer or enter into an agency contract unless the agent is appointed with that insurer within 15 days of the date the agent contract is executed or the first insurance application is submitted, and the appointment shall show the lines of authority being requested for that agent.
Note: A free copy of each form referenced in this section may be obtained from the Office of the Commissioner of Insurance, P.O. Box 7872, Madison, WI 53707-7872 or on the office of the commissioner of insurance website at http://oci.wi.gov/. SECTION 2.
Ins 6.58 is amended to read:Ins 6.58 (1) PURPOSE. The purpose of this rule is to establish procedures for licensure of insurance intermediary firms as insurance intermediaries, reinsurance intermediaries, travel insurance agents or managing general agents.
(1m) DEFINITION. In this section "firm" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
(2) LICENSE. Any firm may obtain an insurance intermediary firm license under this section.
(3) PROCEDURE. (a) Application for a permanent intermediary license, reinsurance intermediary license, travel insurance agent license or managing general agent license for a corporation or partnership shall be made on application form 11-50 or, for residents of states that have signed a declaration of uniform treatment with Wisconsin, the NAIC Uniform Application for Business Entity Non-Resident License/ Registration form and filed with the commissioner of insurance filed in a manner prescribed by the commissioner using the NAIC Uniform Application. The application shall be accompanied by include:
Note: Copies of forms referenced in ss. Ins 6.58 and 6.59 can be obtained at the office of the commissioner of insurance.
1. A licensing fee of $ 100.00;
2. Certification that the articles of incorporation or association include the intent, in good faith, to do business as an intermediary, reinsurance intermediary or managing general agent A completed NAIC Uniform Application;
3. Certification that the insurance intermediary firm will transact business in such a way that all acts that may only be performed by a licensed intermediary are performed exclusively by natural persons who are licensed under s. 628.04, Stats., and functioning within the scope of the license, and a list of such persons;
4. If the insurance intermediary firm is domiciled outside of Wisconsin, an agreement to be subject to the jurisdiction of the commissioner and the courts of this state on any matter related to the insurance intermediary firm's insurance activities in this state, on the basis of service of process under ss. 601.72 and 601.73, Stats.; and
5. A list of all partners, directors or principal officers or persons in fact having comparable power.
6. In the case of a corporation, the application must be signed or submitted by an officer. In the case of a partnership, the application must be signed or submitted by a partner.
7. Any bond, policy, designation or information required under s. Ins 47.02 (3) or (5). 8. A Designated Responsible Licensed Producer, DRLP, assigned by the intermediary firm.
(b) Determination of the acceptance or rejection of a completed application shall be made within 84 90 days. A completed application consists of form OCI 11-50 or the NAIC Uniform Application for Business Entity Nonresident License/Registration form and other required material described in par. (a).
(4) STANDARDS OF COMPETENCE AND TRUSTWORTHINESS. (a) For partners, directors or principal officers who are licensed at the time of application under sub. (4) as insurance intermediaries, reinsurance intermediaries, travel insurance agents or managing general agents, those standards as set [forth] forth in s. Ins 6.59 (5) shall apply in lieu of the standards set forth in this section.
Note: A missing word is shown in brackets.
(b) For partners, directors or principal officers who are not licensed at the time of application under sub. (4) as insurance intermediaries, reinsurance intermediaries, travel insurance agents or managing general agents, the following criteria may be used in assessing trustworthiness and competence:
1. 'Criminal record.' The conviction for crimes which are substantially related to insurance. “Conviction” includes having been found guilty by judge or jury, having entered a plea of guilty or nolo contendere or no contest, or having been given probation, a suspended sentence, or a fine.
2. 'Accuracy of information.' Any material misrepresentation in the information submitted on form 11-50 in the application.
3. 'Regulatory action.' Any regulatory action taken with regard to any license held, such as insurance licenses in other states, real estate licenses and security licenses.
4. Other criteria which the commissioner considers evidence of untrustworthiness or incompetence. Section 4.
Section 5.
(6) NOTIFICATION OF CHANGES. Each insurance intermediary firm licensed or applying for a license shall, within 30 days, notify the commissioner of insurance in writing of any change in its business mailing address, business address, contact email address, location of the business records, or a change in the name and or address of the designated representative.
Note: Intermediary corporations and partnerships are subject to the record-keeping requirements as set forth in s. Ins 6.61 (1).
A free copy of each form referenced in this section may be obtained from the office of the commissioner of insurance, P.O. Box 7872, Madison, WI 53707-7872 or on the office of the commissioner of insurance website at http://oci.wi.gov/.
SECTION 3.
Ins 6.59 (4) (a), (am), (an), (ap), (as), (av), and (ax) are amended to read:
(4) PROCEDURE. (a) Application for resident intermediary agents. Application for a permanent resident agent license or an enlargement of authority requiring an examination shall be made on-line in a manner prescribed by the commissioner following successful completion of any required prelicensing education and the examination. A completed application consists of the agent's name, the current address for the residence of the applicant; the current mailing address for the applicant; an original exemption form as required under ch. Ins 26, if required by s. Ins 26.04 (3); an electronic confirmation of prelicensing education completion for the specific lines of authority shall include: the NAIC Uniform Application; fingerprints to be provided in a format specified by the commissioner in order to complete, an electronic confirmation of criminal history from the Wisconsin department of justice, the crime information bureau, and the federal bureau of investigation completed not more than 180 days prior to the test date; payment of the fees to the testing vendor, and an electronic photograph of the applicant taken by the test service at the time of testing; a certified certificate of prelicensing from the prelicensing school that was presented to the exam proctor prior to sitting for the exam; confirmation of previous license in another state, if applicable; and any documentation required in answer to questions on the application.
(am) Application for nonresident intermediary agents. Application for a permanent nonresident agent license or an enlargement of authority shall be made on-line or on form OCI 11-041N (rev.) or on filed in a manner prescribed by the commissioner using the NAIC Uniform Application for Individual Nonresident License form and filed with the office of the commissioner of insurance. A completed application consists of shall include: the NAIC Uniform Application; payment of the fees; and any documentation required in answer to questions on the application. If confirmation of license status is not attainable from the National Insurance Producer Registry, an original certificate evidence of licensing from the home state, as defined by s. Ins 28.03 (3m), of residence is required.
(an) Application for Variable variable life and variable annuity products. Application for a permanent resident agent variable life and variable annuity products license or an enlargement of authority to include variable life and variable annuity products license shall be made on-line or on form OCI 11-041R (rev.) and filed with the office of the commissioner of insurance filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application consists of a completed form OCI 11-041R (rev.) giving the current address for the residence of the application; the current mailing address for the applicant shall include: the NAIC Uniform Application; payment of the fees; any documentation required in answer to questions on the application; and verification of required registration by the Financial Industry Regulatory Authority (FINRA) registered for Series 6 or Series 7.
(ap) Application for limited travel, crop, legal expense or surety agent license. Application for a permanent resident agent travel, crop, legal expense or surety agent limited license or an enlargement of authority to include travel, crop, legal expense or surety limited license shall be made on-line or on form OCI 11-041R (rev.) and filed with the office of the commissioner of insurance filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application consists of a completed form OCI 11-041R (rev.) giving the current address for the residence of the applicant; the current mailing address for the applicant shall include: the NAIC Uniform Application; payment of the fees; and any documentation required in answer to questions on the application.
(as) Application for reinsurance intermediary-broker, reinsurance intermediary-manager or managing general agent. Application for a reinsurance intermediary broker or reinsurance intermediary manager or managing general agent license shall be made on form OCI 11-040 and filed with the office of the commissioner of insurance filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application consists of a completed application form shall include: the NAIC Uniform Application; payment of the fees; and any documentation required in answer to questions on the application.
(av) Application for a title insurance limited license by Wisconsin licensed attorneys. Application for a permanent resident agent title insurance limited license or an enlargement of authority to include title insurance limited license shall be made on form OCI 11-41Atty (rev.) and filed with the office of the commissioner of insurance filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application consists of a completed form OCI 11-041Atty (rev.) giving the current address for the residence of the applicant shall include: the NAIC Uniform Application; an original certificate signed by the provider showing completion of at least 6 hours of continuing legal education approved by the Wisconsin Board of Bar Examiners dealing solely with title insurance and completed within 1 year of the application date; a copy of the applicant's current State Bar of Wisconsin membership card if membership cannot be verified by the commissioner; payment of the fees; and any documentation required in answer to questions on the application.
(ax) Application for surplus lines agent license. Application for a surplus lines insurance license shall be made on form OCI 11-070 (rev.) and filed with the office of the commissioner of insurance filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application consists of a completed form OCI 11-070 (rev.) giving the current address for the residence of the applicant shall include: the NAIC Uniform Application; payment of the fees; and any documentation required in answer to questions on the application.SECTION 4.
Ins 6.59 (4) (b) is repealed.SECTION 5.
Ins 6.59 (4) (c) is amended to read:Ins 6.59 (4) (c) Issuance of license. An applicant for an original license or an enlargement of authority who passes the examination, if required, satisfies the requirements in par. (a), (am) or (as) and meets the standards of competence and trustworthiness as described in sub. (5) shall be issued a license for those kinds of authority for which the applicant is qualified. Examination scores are valid for 30 180 days. Failure to apply for a license within 30 180 days will require candidate to re-take the examination. Determination of the acceptance or rejection of a completed application shall be made within 90 days of receipt by the office of the commissioner of insurance of the completed application including any documentation required.
SECTION 6.
Ins 6.59 (5) (a) is amended to read:Ins 6.59 (5) (a) Criminal record. The conviction for crimes which are substantially related to the circumstances of holding an insurance license. “Conviction” includes having been found guilty by judge or jury, having entered a plea of guilty or nolo contendere or no contest, or having been given probation, a suspended sentence, or a fine.
SECTION 7.
Ins 6.59 (8) (e) is amended to read:Ins 6.59 (8) (e) A licensed nonresident agent, after becoming a resident of a state other than Wisconsin, may retain licensing authority under the nonresident license for a maximum of 60 days, at which time all authority granted under the nonresident license shall cease terminate if licensure in the new home state, as defined by s. Ins 28.03 (3m), cannot be verified by the commissioner, unless a letter of certification or other comparable evidence from the new state of residence home state is provided to the commissioner.
Note: A free copy of each form referenced in this section may be obtained from the office of the commissioner of insurance, P.O. Box 7872, Madison, WI 53707-7872 or on the office of the commissioner of insurance website at http://oci.wi.gov/. SECTION 8.
Ins 6.595 (1) (am) is created to read:Ins 6.595 (1) (am) “Producer” means an insurance marketing intermediary as defined in s. 628.02, Wis. Stat.
SECTION 9.
Ins 6.61 (15) is amended to read:Ins 6.61 (15) CHANGE OF NAME OR ADDRESS. Each intermediary shall, within 30 days, notify the commissioner of insurance in writing in a manner prescribed by the commissioner of any change in the intermediary's name, residence address, and contact email address, business address or mailing address.
Section 6.
SECTION 10.
Ins 6.63 (2) is amended to read:Ins 6.63 (2) Renewal fees are due on the last day of the intermediary's birth month every other year. OCI will send a form OCI 11-051 renewal fee notice by first-class mail in a manner prescribed by the commissioner at least 60 days prior to the fee due date to each intermediary at the mailing address on file with the office of the commissioner of insurance.
SECTION 11.
Ins 6.63 (3) is amended to read: Ins 6.63 (3) Any resident individual intermediary whose license is revoked terminated for failing to pay renewal fees, or failing to complete required continuing education or revoked for failing to pay unemployment insurance contributions or failing to pay delinquent taxes may, within 12 months from the termination or revocation date, apply to be relicensed for the same license without completing prelicensing education or passing a written examination. Resident licensees who are required to complete continuing education must have all previous requirements met. The application fee shall be as specified in s. 628.10 (5) (a), Stats. If a resident license has been terminated or revoked for more than 12 months, the intermediary shall, in order to be relicensed, satisfy the examination and licensing requirements established by s. Ins 6.59.
SECTION 12.
Ins 6.63 (4) is amended to read:Ins 6.63 (4) Intermediaries with a Surplus Lines license shall pay an annual renewal fee of $100.00 on or before the assigned expiration date each year. OCI will send an OCI a renewal fee notice by first-class mail in a manner prescribed by the commissioner at least 60 days prior to the fee due date to each intermediary surplus lines agent at the home address on file with the office of the commissioner of insurance. Any resident individual intermediary whose surplus lines license is revoked terminated for failing to pay renewal fees or revoked for failing to pay unemployment insurance contributions or failing to pay delinquent taxes may, within 12 months from the revocation date for failing to pay delinquent taxes or within 10 months from the revocation date for failure to pay a renewal fee or complete continuing education, apply to be relicensed for the same license must apply to be relicensed. If a license has been revoked for more than 12 months for failing to pay delinquent taxes or revoked for more than 10 months for failure to pay a renewal fee, the intermediary shall, in order to be relicensed, satisfy the licensing requirements established by s. Ins 6.59.
Note: A free copy of each form referenced in this section may be obtained from the office of the commissioner of insurance, P.O. Box 7872, Madison, WI 53707-7872 or on the office of the commissioner of insurance website at http://oci.wi.gov/. SECTION 13.
Ins 6.92 (2) (a) is amended to read:Ins 6.92 (2) PROCEDURE. (a) Application for navigator license. An individual applying for a navigator license shall submit an application to the office in the form prescribed by the commissioner. A completed application shall include: the navigator's name; the navigator's residence; contact email address; mailing and business addresses; confirmation of successful completion of prelicensing training; fingerprints provided in a format specified by the commissioner to complete; an electronic confirmation of criminal history from the Wisconsin department of justice, crime information bureau, and the federal bureau of investigation completed not more than 180 days prior to the licensing examination date; payment of the nonrefundable fees to the testing vendor; an electronic photograph of the applicant taken by the test vendor at the time of testing; confirmation of previous navigator licensure in another state, if applicable; payment of the fee under s. 601.31 (1) (nm), Stats.; proof of financial responsibility under sub. (7); and any documentation required in answer to questions on the application.
