Chapter Ins 20

Chapter Ins 20

INSURANCE MARKETING

Ins 20.01   Home solicitation selling.

Ins 20.01 Ins 20.01 Home solicitation selling.

Ins 20.01(1) (1) Purpose.

Ins 20.01(1)(a) (a) The purpose of this section is to require certain disclosures by an insurance agent making home solicitation of insurance.

Ins 20.01(1)(b) (b) The office of the commissioner of insurance has received numerous complaints indicating that certain presentations may be misleading to consumers unless disclosures are required. The public interest requires that these disclosures be made. The commissioner finds that without these disclosures, such presentations are misleading and deceptive.

Ins 20.01(2) (2) Scope. This section applies to all insurance intermediaries or their representatives making home solicitation selling of insurance in the state of Wisconsin.

Ins 20.01(3) (3) Definition. For purpose of this section:

Ins 20.01(3)(a) (a) “Buyer” means both an actual or prospective purchaser of insurance offered through home solicitation selling.

Ins 20.01(3)(b) (b) “Home solicitation sale” or “sale” means a sale resulting from home solicitation selling as defined in par. (c).

Ins 20.01(3)(c) (c) “Home solicitation selling” means the solicitation or the offering for sale of insurance where the solicitation or sale is either personally solicited or consummated by the agent at the residence or place of business or employment of the buyer or away from the agent’s regular place of business. Personal solicitation includes solicitations made directly or indirectly by telephone, person to person contact, or by written or printed communication, other than general advertising indicating a clear intent to sell insurance or services at a regular place of business.

Ins 20.01(3)(d) (d) “Seller” means a person, insurance agent, representative, insurance intermediary or organization engaged in any of the following:

Ins 20.01(3)(d)1. 1. Home solicitation selling;

Ins 20.01(3)(d)2. 2. Advertising or offering services in home solicitation selling; or

Ins 20.01(3)(d)3. 3. Providing or exercising supervision, direction, or control over sales practices used in home solicitation sales.

Ins 20.01(4) (4) Disclosure obligation.

Ins 20.01(4)(a) (a) In home solicitation selling every seller shall, at the time of initial contact or communication with the buyer, clearly and expressly disclose:

Ins 20.01(4)(a)1. 1. The seller’s individual name;

Ins 20.01(4)(a)2. 2. The name of the business firm or organization represented;

Ins 20.01(4)(a)3. 3. A statement of the fact that insurance is being sold;

Ins 20.01(4)(a)4. 4. The identity of the insurer, if the solicitation is primarily for a single insurer.

Ins 20.01(4)(a)5. 5. The type of insurance being solicited.

Ins 20.01(4)(b) (b) When the initial contact is made in person or by telephone, the disclosures shall be made before asking any questions or making any statements other than an initial greeting.

Ins 20.01(4)(c) (c) If the seller receives cash or a check, the seller shall furnish to the buyer, at or prior to the time payment is made, a receipt or other document evidencing the transaction showing:

Ins 20.01(4)(c)1. 1. The date of the sale;

Ins 20.01(4)(c)2. 2. A description of the type of policy applied for;

Ins 20.01(4)(c)3. 3. The total price paid;

Ins 20.01(4)(c)4. 4. The individual name of the person making the sale; and

Ins 20.01(4)(c)5. 5. The name and mailing address of the insurer issuing the policy.

Ins 20.01(5) (5) Prohibited practices.

Ins 20.01(5)(a) (a) No seller engaged in a home solicitation sale shall represent directly or by implication that the seller is making an offer to specially selected persons or that the buyer or prospective buyer has been specially selected, unless such representations are true and the specific basis for such representations is stated at the same time the representation is made.

Ins 20.01(5)(b) (b) No seller engaged in a home solicitation sale shall represent that the seller is conducting a survey, test or research project, or engaged in a contest or other venture to win a cash award, scholarship, vacation or similar prize, when in fact the principal objective is to make an insurance sale or obtain information to help identify sales prospects.

Ins 20.01(5)(c) (c) No seller engaged in a home solicitation sale shall represent that the seller is conducting a special sales promotion campaign or making a special limited offer to a few persons only or for a limited period of time, or is authorized to sell the insurance in a few homes, unless the representations are true and the specific basis upon which representations are made is disclosed at the same time as the representations are made to the prospective buyer.

Ins 20.01(5)(d) (d) No seller engaged in making a home solicitation sale shall use any false, deceptive or misleading representations to induce a sale, or use any plan, scheme or ruse which misrepresents that the person making the call is selling insurance, or fail to leave the premises at which a sales presentation is made promptly when requested to do so.

Ins 20.01(6) (6) Penalty. Violations of this rule shall subject violators and marketing firms to the penalties specified in ss. 601.64 and 601.65, Stats.

Ins 20.01 History History: Cr. Register, April, 1986, No. 364, eff. 5-1-86.