Ins 2.18(6)(c)(c) New or revised information about officers, partners, directors, members, designated employees, or stockholders, except stockholders owning fewer than ten percent of the shares of a provider or broker whose shares are publicly traded.

Ins 2.18(7)(7) Filing and approval of forms. In fulfilling the requirements of s. 632.69 (5), Stats., a licensee shall comply with the provisions of s. 631.20 (1) (a), Stats.

Ins 2.18(8)(a)(a) Purpose. This subsection interprets and implements s. 632.69, Stats., by specifying the content of certain notices required to be given to policyholders, owners and purchasers.

Ins 2.18(8)(b)(b) Notice format. An insurer shall use the forms in Appendices I, II, and III to comply with this subsection. Each notice shall be in no less than 10-point type, and shall include the issuer’s address, toll free telephone number, if available, and telephone number in no less than 12-point type.

Ins 2.18(8)(c)1.1. This par. (c) does not apply to term life insurance.

Ins 2.18(8)(c)2.2. For each life insurance policy issued, life insurers shall provide to individual life insurance policyholders at the time the policy is issued the notice prescribed in Appendix I to this section.

Ins 2.18(8)(c)3.3. In addition, life insurers shall provide a statement informing the policyholder that if the policyholder is considering making changes in the status of a policy, the policyholder should consult with a licensed insurance agent or financial advisor to find an alternative best suited to the policyholder’s needs. The statement shall advise the policyholder that additional information is available from the office of the commissioner of insurance at its website address: http://oci.wi.gov or by telephone at 1-800-236-8517. The statement shall be sent to the policyholder annually, and may be included in notices or mailings otherwise provided to policyholders.

Ins 2.18(8)(c)4.4. The commissioner shall make information concerning policy alternatives available to the public.

Ins 2.18(8)(c)5.5. Compliance by insurers with the requirements of par. (c) shall commence three months after September 1, 2012.

Ins 2.18(8)(d)(d) Disclosure to owner. In accordance with s. 632.69 (8) (a) 2., Stats., at the time disclosures required by s. 632.69 (8) (a) 1., Stats., are provided by the broker or provider with each application for a life settlement, the broker or provider shall provide to the owner a brochure entitled “Wisconsin Guide to Understanding Life Settlements” as prescribed in Appendix II to this section.

Ins 2.18(8)(e)(e) Disclosure to purchaser. In accordance with s. 632.69 (9) (a) 2., Stats., at the time disclosures required by s. 632.69 (9) (a) 1., Stats., are provided by the provider to the purchaser, and prior to the date that a life settlement purchase agreement is signed by all parties, a provider shall provide to the purchaser a brochure entitled “Wisconsin Guide to Purchase of a Life Settlement” as prescribed in Appendix III to this section.

Life insurance is a critical part of a broader financial plan. If you are considering making changes in the status of your policy you should consult with a licensed insurance or financial advisor in order to find an alternative best suited to your needs. Available alternatives include but are not limited to:

• Life Settlement: You may be able to sell your life insurance policy to a third party for an amount greater than the cash surrender value or accelerated death benefit but less than the expected death benefit under your policy. The third party becomes the policyholder and receives the benefit upon the death of the insured. Upon sale to the third party you would pay no further premium. Wisconsin law requires brokers and providers who arrange life settlements to be licensed.

• Maintain Your Policy: You may be able to maintain your life insurance policy in force by paying the premiums directly or using your current policy value to pay the premiums.

• Policy Changes: You may be able to reduce or eliminate future premium payments by obtaining a paid-up policy, by reducing coverage, or through other options available from your life insurer.

• Policy Loan: You may be able to obtain a loan from your life insurance company using the cash value of your policy as collateral. Loan proceeds may be used to pay premiums or for other purposes.

• Third-Party Loan: You may be able to obtain a loan from another party to pay your premiums using the cash value or a portion of the death benefit as collateral.