Chapter Ins 6

Ins 6.58 Ins 6.58 Licensing of insurance intermediary firms as insurance agents.

Ins 6.58(1) (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.

Ins 6.58(1m) (1m) Definition. In this section “firm” means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.

Ins 6.58(2) (2) License. Any firm may obtain an insurance intermediary firm license under this section.

Ins 6.58(3) (3) Procedure.

Ins 6.58(3)(a) (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 filed in a manner prescribed by the commissioner using the NAIC Uniform Application. The application shall include:

Ins 6.58(3)(a)1. 1. A licensing fee of $100.00;

Ins 6.58(3)(a)2. 2. A completed NAIC Uniform Application;

Ins 6.58(3)(a)3. 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;

Ins 6.58(3)(a)4. 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

Ins 6.58(3)(a)5. 5. A list of all partners, directors or principal officers or persons in fact having comparable power.

Ins 6.58(3)(a)6. 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.

Ins 6.58(3)(a)7. 7. Any bond, policy, designation or information required under s. Ins 47.02 (3) or (5).

Ins 6.58(3)(a)8. 8. A Designated Responsible Licensed Producer, DRLP, assigned by the intermediary firm.

Ins 6.58(3)(b) (b) Determination of the acceptance or rejection of a completed application shall be made within 90 days.

Ins 6.58(4) (4) Standards of competence and trustworthiness.

Ins 6.58(4)(a) (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 in s. Ins 6.59 (5) shall apply in lieu of the standards set forth in this section.

Ins 6.58(4)(b) (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:

Ins 6.58(4)(b)1. 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.

Ins 6.58(4)(b)2. 2. ‘Accuracy of information.’ Any material misrepresentation in the information submitted in the application.

Ins 6.58(4)(b)3. 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.

Ins 6.58(4)(b)4. 4. Other criteria which the commissioner considers evidence of untrustworthiness or incompetence.

Ins 6.58(5) (5) Fees.

Ins 6.58(5)(a) (a) Biennially, at least 60 days prior to February 15 of each even numbered year, a regulation fee notice of $35.00 for resident and $70.00 for nonresident insurance intermediary firms, reinsurance intermediaries, travel insurance firms, and managing general agents will be issued in a manner prescribed by the commissioner.

Ins 6.58(5)(b) (b) If payment of the biennial regulation fee is not made prior to February 15 of the year in which it is due, in a payment type prescribed by the commissioner, the license shall terminate.

Ins 6.58(6) (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 or address of the designated representative.

Ins 6.58 Note Note: Intermediary corporations and partnerships are subject to the recordkeeping requirements as set forth in s. Ins 6.61 (1).

Ins 6.58 History History: Cr. Register, August, 1980, No. 296, eff. 9-1-80; am. (5) (a), Register, September, 1981, No. 309, eff. 10-1-81; cr. (6), Register, September, 1981, No. 309, eff. 1-1-82; r. and recr. (2), r. (3) and (8), renum. (4) to (7) to be (3) to (6), Register, April, 1982, No. 316, eff. 5-1-82; r. form 11-50, Register, October, 1982, No. 322, eff. 11-1-82; am. (3) (a) to (f), Register, December, 1984, No. 348, eff. 1-1-85; correction in (5) made under s. 13.93 (am) (b) 7., Stats., Register, December, 1984, No. 348; emerg. am. (1), (3) (intro.), (a) 1. and 2., (4) (a), (b) (intro.) and 1., (5) (a) and (6), cr. (3) (a) 7., eff. 3-12-93; am (1), (3) (intro.), (a) 1. and 2., (4) (a), (b) (intro.) and 1., (5) (a) and (6), cr. (3) (a) 7., Register, July, 1993, No. 451, eff. 8-1-93; emerg. am. (5) (a), eff. 10-9-95; am. (5) (a), Register, February, 1996, No. 482, eff. 3-1-96; cons. and renum. (3) (intro.) and (a) (intro.) to be (3) (a) (intro.) and am., am. (3) (b), Register, January, 1999, No. 517, eff. 2-1-99; CR 01-074: am. (1), (2), (3) (a) 3. and 4., (5) and (6), Register January 2002 No. 553 eff. 2-1-02; CR 05-111: am. (3) (b) and (5) (a) Register October 2006 No. 610, eff. 11-1-06; CR 09-022: am. (5) (a) and (b) Register August 2009 No. 644, eff. 9-1-09; CR 19-025: am. (1), (3) (a) (intro.), 2., 6., cr. (3) (a) 8., am. (3) (b), (4) (a), (b) (intro.), 1., 2., (5) (a), (b), r. (5) (c), am. (6) Register August 2020 No. 776, eff. 9-1-20.

Ins 6.59 Ins 6.59 Licensing of individuals as agents, reinsurance intermediaries, or managing general agents (s. 628.04, Stats.).

Ins 6.59(1) (1) Purpose. The purpose of this rule is to establish procedures for original licensure and license enlargement of an individual as an insurance agent, reinsurance intermediary or managing general agent.

Ins 6.59(2) (2) Examination. An examination is required of each resident applicant for each kind of license authority listed in s. Ins 6.50, except a reinsurance intermediary license, managing general agent, variable life or variable annuity and the limited line travel, crop and surety insurance licenses. Each examination will test the applicant’s basic knowledge of the kinds of insurance to be solicited or function to be performed and the applicant’s basic understanding of the applicable laws and regulations.

Ins 6.59(3) (3) Fees. The following fee schedule is established for residents and non-residents:

Application for one line of authority   $75.00

Application for 2 lines of authority   $150.00

Application for 3 lines of authority   $225.00

Application for 4 lines of authority   $300.00

Application for 5 lines of authority   $375.00

Application for a Surplus Lines license   $100.00

Ins 6.59(4) (4) Procedure.

Ins 6.59(4)(a) (a) Application for resident intermediary agents. Application for a permanent resident agent license or an enlargement of authority requiring an examination shall be made in a manner prescribed by the commissioner following successful completion of any required prelicensing education and the examination. A completed application shall include: the NAIC Uniform Application; fingerprints 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.

Ins 6.59(4)(am) (am) Application for nonresident intermediary agents. Application for a permanent nonresident agent license or an enlargement of authority shall be filed in a manner prescribed by the commissioner using the NAIC Uniform Application for Individual Nonresident License form. A completed application 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, evidence of licensing from the home state, as defined by s. Ins 28.03 (3m), is required.

Ins 6.59(4)(an) (an) Application for 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 filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application 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.

Ins 6.59(4)(ap) (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 filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application shall include: the NAIC Uniform Application; payment of the fees; and any documentation required in answer to questions on the application.

Ins 6.59(4)(as) (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 filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application shall include: the NAIC Uniform Application; payment of the fees; and any documentation required in answer to questions on the application.

Ins 6.59(4)(av) (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 filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application 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.

Ins 6.59(4)(ax) (ax) Application for surplus lines agent license. Application for a surplus lines insurance license shall be filed in a manner prescribed by the commissioner using the NAIC Uniform Application. A completed application shall include: the NAIC Uniform Application; payment of the fees; and any documentation required in answer to questions on the application.

Ins 6.59(4)(c) (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 180 days. Failure to apply for a license within 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.

Ins 6.59(5) (5) Competence and trustworthiness. The following criteria may be used in assessing trustworthiness and competence:

Ins 6.59(5)(a) (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.

Ins 6.59(5)(b) (b) Accuracy of information. Any material misrepresentation in the information submitted on the application form.

Ins 6.59(5)(c) (c) Regulatory action. Any regulatory action taken with regard to any occupational license held, such as insurance licenses in other states, real estate licenses and security licenses.

Ins 6.59(5)(d) (d) Other criteria. Other criteria which the commissioner considers evidence of untrustworthiness or incompetence, including but not limited to:

Ins 6.59(5)(d)1. 1. Providing incorrect, misleading, incomplete or materially untrue information in the license application.

Ins 6.59(5)(d)2. 2. Violating any insurance laws, or violating any regulation, subpoena or order of the insurance commissioner or of another state’s insurance commissioner.

Ins 6.59(5)(d)3. 3. Obtaining or attempting to obtain a license through misrepresentation or fraud;

Ins 6.59(5)(d)4. 4. Improperly withholding, misappropriating or converting any monies or properties received in the course of doing insurance business.

Ins 6.59(5)(d)5. 5. Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance.

Ins 6.59(5)(d)6. 6. Having been convicted of a felony or misdemeanor substantially related to the circumstances of holding an insurance license.

Ins 6.59(5)(d)7. 7. Having admitted or been found to have committed any insurance unfair trade practice or fraud.

Ins 6.59(5)(d)8. 8. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere.

Ins 6.59(5)(d)9. 9. Having an insurance producer license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory.

Ins 6.59(5)(d)10. 10. Forging another’s name to an application for insurance or to any document related to an insurance transaction.

Ins 6.59(5)(d)11. 11. Improperly using notes or any other reference material to complete an examination for an insurance license.

Ins 6.59(5)(d)12. 12. Knowingly accepting insurance business from an individual who is not licensed.

Ins 6.59(5)(d)13. 13. Failing to comply with an administrative or court order imposing a child support obligation.

Ins 6.59(5)(d)14. 14. Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.

Ins 6.59(5)(e) (e) Age. Is at least eighteen (18) years of age.

Ins 6.59(6) (6) Frequency and location. Examinations for each kind of agent authority will be administered at least once a month in accordance with a schedule adopted by the commissioner.

Ins 6.59(8) (8) Change in residency status.

Ins 6.59(8)(a) (a) A licensed nonresident agent, after becoming a Wisconsin resident, may retain authority under the nonresident agent license for a maximum of 60 days, at which time all authority granted under the nonresident license shall cease.

Ins 6.59(8)(b) (b) A licensed resident agent after becoming a resident of another state, may retain authority under the resident license for a maximum of 60 days, at which time all authority granted under the resident license shall cease.

Ins 6.59(8)(c) (c) If an agent changes residency status and becomes licensed under the new status, all authority granted by the license issued under the former status shall terminate on the date the new license is issued.

Ins 6.59(8)(d) (d) Criteria used by the insurance commissioner to establish residency shall include, but not be limited to:

Ins 6.59(8)(d)1. 1. Jurisdiction for payment of state taxes.

Ins 6.59(8)(d)2. 2. Jurisdiction for automobile driver’s license and motor vehicle registration.

Ins 6.59(8)(d)3. 3. Location of voter registration.

Ins 6.59(8)(d)4. 4. Location of principal residence, such as owned or rented dwelling, condominium or apartment.

Ins 6.59(8)(e) (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 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 home state is provided to the commissioner.

Ins 6.59 History History: Cr. Register, March, 1977, No. 255, eff. 4-1-77; am. (8), Register, June, 1978, No. 270, eff. 7-1-78; cr. (10), Register, September, 1978, No. 273, eff. 10-1-78; am. (3) and (7), Register, February, 1980, No. 290, eff. 3-1-80; r. (6) and (9), renum. (7), (8) and (10) to be (6), (7) and (8), Register, August, 1980, No. 296, eff. 9-1-80; r. and recr. Register, September, 1981, No. 309, eff. 10-1-81; am. (4), cr. (8), Register, December, 1984, No. 348, eff. 1-1-85; am. (2), (3), (4) (a) and (b) and (6), Register, May, 1987, No. 377, eff. 7-1-87; am. (4) (a) and (5) (b), Register, January, 1992, No. 433, eff. 2-1-92; cr. (8) (e), Register, April, 1992, No. 436, eff. 5-1-92; am. (4) (a) and (c), Register, June, 1992, No. 438, eff. 7-1-92; emerg. am. (1), (2), (4) (a), (c), (5) (a), (8) (a) to (c) and (e), cr. (9), eff. 3-12-93; emerg. am. (3), (4) (b), (c) and (6), r. and recr. (4) (a), cr. (4) (am) and (as), eff. 7-1-93; am. (1), (2), (3), (c), (5) (a), (8) (a) to (c) and (e), cr. (4) (am), (as), (9), r. and recr. (4) (a), Register, July, 1993, No. 451, eff. 8-1-93; emerg. am. (4) (a), eff. 10-9-95; am. (4) (a) and (am), Register, February, 1996, No. 482, eff. 3-1-96; am. (4) (a), (am) and (as), Register, January, 1999, No. 517, eff. 2-1-99; cr. (4) (av), Register, October, 2000, No. 538, eff. 11-1-00; CR 01-074: am. (4) (am), (5) (a), (c) and (d), cr. (5) (d) 1. to 14. and (5) (e), r. (7) and (9), Register January 2002 No. 553, eff. 2-1-02; CR 05-111: am. (3) and (4) (a) to (av), cr. (4) (ax) Register October 2006 No. 610, eff. 11-1-06; CR 07-096: am. (2) and (4) (a) Register March 2008 No. 627, eff. 4-1-08; CR 09-022: am. (2), (3), (4) (a), (b), (c), (8) (a), (b), (c) and (e), cr. (4) (an) and (ap) Register August 2009 No. 644, eff. 9-1-09; CR 19-025: am. (4) (a), (am), (an), (ap), (as), (av), (ax), r. (4) (b.), am. (4) (c), (5) (a), (8) (e) Register August 2020 No. 776, eff. 9-1-20.

Ins 6.595 Ins 6.595 Exemption of licensing of individuals as intermediaries.

Ins 6.595(1) (1) Definitions. In this section:

Ins 6.595(1)(a) (a) “Negotiate” means to confer directly with or offer advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.

Ins 6.595(1)(am) (am) “Producer” means an insurance marketing intermediary as defined in s. 628.02, Stats.

Ins 6.595(1)(b) (b) “Sell” or “Place” means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurance company.

Ins 6.595(1)(c) (c) “Solicit” means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company.

Ins 6.595(2) (2) Exemptions. The following persons are not required to obtain an intermediary license:

Ins 6.595(2)(a) (a) A town mutual agent exempt from licensing under s. 628.03 (1), Stats., by s. 628.05 (1), Stats., includes an agent for a town mutual not authorized to insure members against loss to property by windstorm or hail insurance as provided in ss. 612.31 (2) (a) 3. and 612.33 (2) (a), Stats., who provides windstorm or hail insurance to the town mutual’s members through an insurance policy issued by another authorized insurer operating on an assessment plan. The town mutual agent need not be licensed but the other insurer must list the agent and pay the listing fee in accordance with s. Ins 6.57.

Ins 6.595(2)(b) (b) An officer, director or employee of an insurer or of an insurance producer, provided that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and any of the following apply:

Ins 6.595(2)(b)1. 1. The officer, director or employee’s activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance.