Wis. Admin. Code Office of the Commissioner of Insurance § Ins 3.26 - Unfair trade practices in credit life insurance and credit accident and sickness insurance

Current through November 29, 2021

(1) PURPOSE. The purpose of this rule is to assist in the maintenance of a fair and equitable credit life insurance and credit accident and sickness insurance market. This rule interprets, including but not limited to, the following ss. 601.04, 601.01(1), (2), (3), (7) and (8), 601.41(1), (2) and (3), Stats., and ch. 628, Stats.
(2)SCOPE. This rule shall apply to the transaction of credit life insurance as defined in s. Ins 6.75(1) (a) 1. and s. 632.44(3), Stats., and the transaction of credit accident and sickness insurance as defined in s. Ins 6.75(1) (c) 1. or (2) (c) 1.
(3)UNFAIR TRADE PRACTICES DEFINED. The following acts, whether done directly or indirectly, in consideration of or in connection with a policy issued or proposed to be issued are defined to be prohibited unfair trade practices in the transaction of insurance described in sub. (2):
(a) The offer or grant by an insurer of any special favor or advantage, or any valuable consideration or inducement not set out in the insurance contract. The payment of agents' commissions, reported annually in Schedule 24S, shall not be a violation of this paragraph but the acts cited in pars. (b), (c), (d), (e) and (f) may not in any way be construed as agents' commissions.
(b) The offer to deposit or the deposit with a bank or other financial institution, money or securities of the insurer or of any affiliate of the insurer with the design or intent that the deposit offset or take the place of a deposit of money or securities which otherwise would be required of the creditor by such bank or financial institution as a compensating balance or offsetting deposit for a loan or other advancement.
(c) The deposit with a bank or other financial institution of money or securities without interest or at a lessor rate of interest than is currently being paid other depositors on similar deposits with such bank or other financial institution. This shall not be construed to prohibit the maintenance by an insurer of such demand deposits as are reasonably necessary for use in the ordinary course of business of the insurer.
(d) The offer to sell or the sale of any capital stock or other security or certificate of indebtedness of the insurer or affiliated person.
(e) The offer to pay or the payment of any part of the premium for any insurance on the life, health or property of any creditor or any employee or other person affiliated with the creditor.
(f) The extension to the creditor of credit for the remittance of premium beyond the grace period of a group policy or for more than 45 days from the effective date of an individual policy.
(4)PENALTY. Violations of this rule shall subject the insurer or agent to s. 601.64, Stats.

Notes

Wis. Admin. Code Office of the Commissioner of Insurance § Ins 3.26
Cr. Register, October, 1972, No. 202, eff. 11-1-72; emerg. am. (1) and (2), eff. 6-22-76; am. (1) and (2), Register, September, 1976, No. 249, eff. 10-1-76; am. (1) and (2), Register, March, 1979, No. 279, eff. 4-1-79; correction in (1) made under s. 13.93(2m) (b) 7, Stats., Register, April, 1992, No. 436.

The following state regulations pages link to this page.



State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.