Information on file in the office of the commissioner of insurance shows that
significant misunderstanding exists with respect to cancer insurance. Consumers
are not aware of the limitations of cancer insurance and do not know how cancer
insurance policies fit in with other health insurance coverage. Many of the
sales presentations used in the selling of cancer insurance are confusing,
misleading and incomplete and consumers are not getting the information they
need to make informed choices. The commissioner of insurance finds that such
presentations and sales materials are misleading, deceptive and restrain
competition unreasonably as considered by s.
Stats., and that their continued use without additional information would
constitute an unfair trade practice under s.
Stats., and would result in misrepresentation as defined and prohibited in s.
(2)PURPOSE. This section
Stats., relating to unfair trade practices. It requires insurers and
intermediaries who sell cancer insurance to give all prospective buyers of
cancer insurance a shopper's guide prepared by the national association of
This section applies to all individual, group and franchise insurance policies
or riders which provide benefits for or are advertised as providing benefits
primarily for the treatment of cancer. This section does not apply to
solicitations in which the booklet, "Health Insurance Advice for Senior
Citizens," is given to applicants as required by s.
(4)DEFINITION. "A Shopper's Guide to Cancer
Insurance" means the document which contains the language set forth in Appendix
I to this section.
Each insurer offering a
policy or rider described in sub. (3) shall print, and the insurer and its
intermediaries shall provide to all prospective purchasers of any policy or
rider subject to this section, a copy of "A Shopper's Guide to Cancer
Insurance" at the time the prospect is contacted by the insurer or intermediary
with an invitation to apply, as defined in s.
(b) "A Shopper's Guide to Cancer Insurance"
shall be printed in an easy-to-read type of not less than 12-pt.
Wis. Admin. Code Office of the Commissioner of Insurance § Ins 3.47
Cr. Register, June, 1981,
No. 306, eff. 8-1-81; am. (2) to (5), r. (6), r. and recr. Appendix, Register,
September, 1990, No. 417, eff.