(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.
601.01(1), (2), (3), (7) and
601.41(1), (2) and
(3), Stats., and ch. 628, Stats.
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
(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
(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
(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
(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
Violations of this rule shall subject the insurer or agent to s.
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.