Ins 3.19(2) (2) A group accident and sickness insurance policy may be issued to a creditor to insure debtors of the creditor if the class or classes of insured debtors meet the requirements of s. 206.60 (2) (a) and (c), 1973 Stats., and such a policy shall be subject to the requirements of such paragraphs in addition to other requirements applicable to group accident and sickness insurance policies.

Ins 3.19 History History: Cr. Register, November, 1959, No. 47, eff. 12-1-59; am. Register, September, 1963, No. 93, eff. 10-1-63; r. (3), Register, February, 1973, No. 206, eff. 3-1-73; emerg. am. (1) and (2), eff. 6-22-76; am. (1) and (2), Register, September, 1976, No. 249, eff. 10-1-76.

Ins 3.20 Ins 3.20 Substandard risk automobile physical damage insurance for financed vehicles.

Ins 3.20(1) (1) Purpose. In accordance with s. 625.34, Stats., this rule is to accomplish the purpose and enforce the provisions of ch. 625, Stats., in relation to automobile physical damage insurance for substandard risks.

Ins 3.20(2) (2) Scope. This rule applies to any automobile physical damage insurance policy procured or delivered by a finance company.

Ins 3.20(3) (3) Definitions.

Ins 3.20(3)(a) (a) “Substandard risk” means an applicant for insurance who presents a greater exposure to loss than that contemplated by commonly used rate classifications as evidenced by one or more of the following conditions:

Ins 3.20(3)(a)1. 1. Record of traffic accidents.

Ins 3.20(3)(a)2. 2. Record of traffic law violations.

Ins 3.20(3)(a)3. 3. Undesirable occupational circumstances.

Ins 3.20(3)(a)4. 4. Undesirable moral characteristics.

Ins 3.20(3)(b) (b) “Substandard risk rate” means a rate or premium charge that reflects the greater than normal exposure to loss which is assumed by an insurer writing insurance for a substandard risk.

Ins 3.20(4) (4) Rates for substandard risks.

Ins 3.20(4)(a) (a) Any increased rate charged for substandard risks shall not be excessive, inadequate, or unfairly discriminatory.

Ins 3.20(4)(b) (b) It shall be unfairly discriminatory to charge a rate or premium that does not reasonably measure the variation between risks and each risk’s exposure to loss.

Ins 3.20(4)(c) (c) Classification rates filed for substandard risks may not exceed 150% of the rate level generally in use for normal risks unless the filing also provides for the modification of classification rates in accordance with a schedule which establishes standards for measuring variation in hazards or expense provisions or both.

Ins 3.20(5) (5) Insurance coverage.

Ins 3.20(5)(a) (a) The automobile physical damage insurance afforded shall be substantially that customarily in use for normal business.

Ins 3.20(5)(b) (b) The applicant shall not be required to purchase more coverage than is customarily necessary to protect the interests of the mortgagee. The issuance of a policy shall not be made contingent on the acceptance by the applicant of unwanted or excessively broad coverages.

Ins 3.20(5)(c) (c) Single interest coverage may be issued only when double interest coverage is not obtainable. The applicant must be given the opportunity to procure insurance, and if he or she can procure same within 25 days there shall be no charge for the single interest coverage.

Ins 3.20(6) (6) Policy forms. The purchaser must be furnished with a complete policy form clearly setting forth the nature and extent of all coverages and premiums charged therefor.

Ins 3.20(7) (7) Rating statement. No policy written on the basis of a sub-standard risk rate schedule shall be issued unless it contains a statement printed in bold-faced type, preferably in a contrasting color, reading substantially as follows: This policy has been rated in accordance with a special rating schedule filed with the commissioner of insurance providing for higher premium charges than those generally applicable for average risks. If the coverage or premium is not satisfactory, you may secure your own insurance.

Ins 3.20 History History: Cr. Register, March, 1960, No. 51, eff. 4-1-60; emerg. am. (1), eff. 6-22-76; am. (1), Register, September, 1976, No. 249, eff. 10-1-76; correction in (1) and (5) (c) made under s. 13.93 (2m) (b) 5. and 7., Stats., Register, April, 1992, No. 436.

Ins 3.23 Ins 3.23 Franchise accident and sickness insurance.

Ins 3.23(1) (1) Franchise group headquarters. A franchise group described in s. 600.03 (22), Stats., need not have its headquarters or other executive offices domiciled in Wisconsin.

Ins 3.23(2) (2) Accounting. All premiums paid in connection with franchise accident and sickness insurance on Wisconsin residents shall be reported for annual statement purposes as Wisconsin business and shall be subject to the applicable Wisconsin premium tax.

Ins 3.23 History History: Cr. Register, May, 1964, No. 101, eff. 6-1-64; emerg. am. (1) eff. 6-22-76; am. (1), Register, September, 1976, No. 249, eff. 10-1-76; correction in (1) made under s. 13.93 (2m) (b) 7., Stats., Register, April, 1992, No. 436.

Ins 3.25 Ins 3.25 Credit life insurance and credit accident and sickness insurance.

Ins 3.25(1) (1) Purpose. The purpose of this section is to assist in the maintenance of a fair and equitable credit insurance market and to ensure that policyholders, claimants and insurers are treated fairly and equitably by providing a system of rate, policy form and operating standards for the transaction of credit life insurance and credit accident and sickness insurance. This section interprets and implements ss. 601.01, 601.415 (9), 601.42, 623.06, 625.11, 625.12, 625.34, 631.20, 632.44 (3) and 632.60, Stats., and chs. 421, 422 and 424, Stats.