ETF 60.60(2)(b)(b) “Conversion” means the voluntary exchange of employer-provided group term life insurance under s. 40.72, Stats., for employer-provided health insurance or long-term care insurance, or both, administered under subch. IV of ch. 40, Stats. ETF 60.60(2)(c)(c) “Conversion account” means the account established by the company to record the balance after conversion available to pay the health or long-term care insurance premiums of the insured who has elected conversion. ETF 60.60(2)(d)(d) “Conversion effective date” means the first day of the first month for which the premium for health or long-term care insurance is fully or partially paid from the conversion account. The conversion effective date is determined as provided in sub. (4) (a) 3. ETF 60.60(2)(f)(f) “Insured” means a person who has made, or who is eligible to make, the election provided in s. 40.72 (4r), Stats., and this section. ETF 60.60(2)(g)(g) “Life insurance” means insurance which is provided under s. 40.72 (1), Stats., and which has been reduced to a final amount as provided in s. 40.72 (2) and (3), Stats. ETF 60.60(2)(h)(h) “Long-term care insurance” means insurance which is provided under s. 40.55, Stats., and which qualifies as an accident and health plan under section 106 of the internal revenue code. ETF 60.60(2)(i)(i) “Policyholder” means the state of Wisconsin group insurance board. ETF 60.60(2)(j)(j) “Present value of life insurance” means the sum which, if invested on the conversion effective date, would provide a death benefit equal to the face amount of the insured’s life insurance coverage on the date of death of the insured, based on actuarial assumptions about future mortality rates and interest rates recommended by the company and approved by the department under sub. (5) (a). ETF 60.60(3)(a)(a) An insured may elect to convert the present value of his or her life insurance to pay premiums for health or long-term care insurance, or both, by filing the form prescribed by the department provided that on the conversion effective date all of the following apply: ETF 60.60(3)(a)1.1. The insured meets the requirements of s. 40.72 (4), Stats., to continue life insurance coverage after termination of employment. ETF 60.60(3)(a)2.2. The insured has life insurance and either health insurance or long-term care insurance, or both, as defined in sub. (2). ETF 60.60(3)(a)3.3. The face amount of the insured’s life insurance has been reduced to its final amount as provided in s. 40.72 (2) and (3), Stats. ETF 60.60 NoteNote: Under present law, this will occur at age 70 if the insured is a participating employee with life insurance coverage, at age 66 if the insured is a retired employee of the state or of a participating employer which elected to provide post-retirement life insurance coverage at the 50% level, or otherwise at age 67.
ETF 60.60(3)(a)5.5. The insured’s credits, if any, in the accumulated unused sick leave account established under s. 40.05 (4), Stats., are less than the insured’s current monthly health insurance premium. This subdivision does not apply to elections to convert life insurance to pay long-term care insurance premiums. ETF 60.60(3)(b)1.1. Estimates of the face amount and the present value of the insured’s life insurance prepared by the department and based on the earliest possible conversion effective date at the time of preparation. ETF 60.60(3)(b)2.2. The insured’s designation of a health insurance plan or long-term care insurance plan, or both, for which premiums are to be paid from the conversion account. ETF 60.60(3)(b)3.3. The insured’s waiver of all benefits under the Wisconsin public employers group life insurance program based on the life insurance that is converted, in exchange for the benefits provided in this section. ETF 60.60(3)(b)4.4. The signature of the insured or of the insured’s representative as provided in par. (c). ETF 60.60(3)(c)(c) A person holding the insured’s durable power of attorney may sign in lieu of the insured under the provisions of s. ETF 10.75 if so authorized by the terms of the power of attorney. If a guardian or conservator of the insured’s estate has been appointed, the guardian or conservator shall sign in lieu of the insured. The election is deemed not to have a long-term effect on the insured’s rights and benefits, for purposes of s. 40.08 (9m), Stats., and express court approval of the terms of the election is not required. ETF 60.60(3)(d)(d) The entire face amount of insured’s life insurance up to $50,000 shall be included in the conversion. Insurance over $50,000 may not be converted, and shall remain in force subject to the provisions of statute and contract. ETF 60.60(3)(e)(e) As provided in s. 40.08 (1), Stats., the life insurance benefits provided under s. 40.72, Stats., and this section are not assignable and are not subject to execution, levy, attachment, garnishment, or other legal process. The Department may not honor or otherwise enforce any order which conflicts with s. 40.08 (1), Stats., specifically including but not limited to an order to convert or refrain from converting life insurance coverage, to satisfy claims of creditors other than the department, to apply for, obtain or retain a benefit or entitlement, and any order the department determines to be in violation of s. 40.08 (1), Stats. ETF 60.60 NoteNote: Form ET-2324, ‘‘Election to Convert Life Insurance to Pay Health or Long-Term Care Insurance Premiums,” may be obtained no charge by writing to: Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707-7931, or by calling (608) 266-3285 or toll free at (877) 533-5020.
ETF 60.60(4)(4) Approval of the election, conversion effective date. ETF 60.60(4)(a)(a) Upon receipt of the election form the department shall do all of the following: