Ins 2.17(10)(c)6. 6. Disclose in the annual certification which of the following methods is used to allocate overhead expenses for all illustrations:

Ins 2.17(10)(c)6.a. a. Fully allocated expenses.

Ins 2.17(10)(c)6.b. b. Marginal expenses.

Ins 2.17(10)(c)6.c. c. A generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the commissioner.

Ins 2.17(10)(d) (d) The illustration actuary shall file a certification with the board and with the commissioner annually for all policy forms for which illustrations are used and before a new policy form is illustrated. If an error in a previous certification is discovered, the illustration actuary shall notify the board of directors of the insurer and the commissioner within 30 calendar days of discovery.

Ins 2.17(10)(e) (e) If an illustration actuary is unable to certify the scale for any policy form illustration the insurer intends to use, the actuary shall notify the board of directors of the insurer and the commissioner of the actuary’s inability to certify within 30 calendar days of that determination.

Ins 2.17(10)(f) (f) A responsible officer of the insurer, other than the illustration actuary, shall certify annually all of the following:

Ins 2.17(10)(f)1. 1. That the illustration formats meet the requirements of this section and that the scales used in insurer-authorized illustrations are those scales certified by the illustration actuary.

Ins 2.17(10)(f)2. 2. That the insurer has provided its agents with information about the expense allocation method used by the insurer in its illustrations and disclosed as required in par. (c) 6.

Ins 2.17(10)(g) (g) The annual certifications shall be provided to the commissioner each year by a date determined by the insurer.

Ins 2.17(10)(h) (h) If an insurer changes the illustration actuary responsible for all or a portion of the insurer’s policy forms, the insurer shall notify the commissioner of that fact within 30 calendar days and disclose the reason for the change.

Ins 2.17(11) (11) Penalties. In addition to any other penalties provided by the laws of this state, an insurer or agent that violates a requirement of this section is guilty of a violation of s. 628.34, Stats.

Ins 2.17 History History: Cr. Register, September, 1997, No. 501, eff. 1-1-98.

Ins 2.18 Ins 2.18 Life settlement contracts.

Ins 2.18(1) (1) Purpose. The purpose of this regulation is to interpret and implement s. 632.69, Stats.

Ins 2.18(2) (2) Definitions. In addition to the definitions contained in s. 632.69 (1), Stats., in this section:

Ins 2.18(2)(a) (a) “Commissioner” means the commissioner of insurance.

Ins 2.18(2)(b) (b) “Firm” means a corporation, partnership or other legal entity.

Ins 2.18(2)(c) (c) “Office” means the office of the commissioner of insurance.

Ins 2.18(2)(d) (d) “Term life insurance” means life insurance which provides coverage at a fixed rate of payment for a limited period of time and which provides no guaranteed nonforfeiture or endowment benefits.

Ins 2.18(3) (3) Licensing.

Ins 2.18(3)(a) (a) Application. An individual or firm applying for an initial or renewal license as a broker or provider shall submit an application to the office in the form prescribed by the office. With the application, the individual or firm shall submit all of the following:

Ins 2.18(3)(a)1. 1. If the applicant is a broker, with the initial application, a professional liability insurance policy in the amount of $1 million total annual aggregate for all claims during the policy period. Proof that the required professional liability insurance policy continues in force shall accompany each renewal application.

Ins 2.18(3)(a)2. 2. If the applicant is a provider, applicants shall provide satisfactory evidence of financial responsibility in compliance with s. 632.69 (2) (g) 4. a., Stats.

Ins 2.18(3)(a)3. 3. If the applicant is a provider, audited financial statements of the applicant for the most recently completed fiscal year. The financial statements shall be available for public inspection.

Ins 2.18(3)(a)4. 4. Electronic confirmation of completion of the training requirements under s. 632.69 (3), Stats., and sub. (4) if electronic confirmation is available. If electronic confirmation is not available the applicant shall provide evidence satisfactory to the commissioner of completion of the training requirements.

Ins 2.18(3)(a)5. 5. Any documentation required in answer to questions on the application.

Ins 2.18(3)(a)6. 6. If the applicant is an individual, his or her social security number or, if the applicant does not have a social security number, a statement made or subscribed under oath or affirmation that the applicant does not have a social security number, and a statement that he or she intends to act as a broker or provider in good faith and in compliance with all applicable laws of this state and rules and orders of the commissioner.

Ins 2.18(3)(a)7. 7. If the applicant is a firm applying for a broker’s license, the applicant must identify a designated responsible Wisconsin-licensed individual representative on the application.