Wisconsin Resources

The current Wisconsin Administrative Code Regulations [INS 15.01 et. seq.---pursuant to WSA Ch. 600.03 (25)(a)(1) specifically] have posed concerns for providers. This is a regulation assuming authority without clear statutory or logical authority. It has never been formally challenged. The rule says service contracts are insurance UNLESS you comply with the regulation, and then it is not insurance. This regulation contains extensive provider and form filing requirements. It also exempts contractors who also issue service contracts. After lobbying by SCIC in 2011 and 2012, the OCI (Office of Commissioner of Insurance) demanded a poorly modified SCIC style law. It was hoped Wisconsin woudl come into line with the NAIC and other states and declare that home service contracts are not insurance. Unfortunately,  a great deal of misinformation was released by the state resulting in adoption of SB 492, signed by Governor Walker on April 6, 2012 and effective  (SEE BELOW) HOWEVER, The new law provides that pursuant to 616.52(3) a provider need not comply with the new law and remain regulated pursuant to their existing certificate under INS 15.01. So current members should have no impact.

General Statutory Authority claimed by OCI

For a direct link, click here

600.01(1)(b)5.
5. Other business specified in rules promulgated by the commissioner on a finding that the transaction of such business in this state does not require regulation for the protection of the interests of Wisconsin insureds or public or for which it would be impracticable to require compliance with chs. 600 to 646, when necessary expenses and efforts are compared with the possible benefits.
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601.04
601.04 Certificate of authority; fee.
601.04(1)
(1) Scope. This section applies to all insurers incorporated or organized under any law of this state except chs. 611, 612, 613 and 614.
601.04(2)
(2) Requirement of license. No insurer or plan subject to this section may transact insurance business in this state without having in effect a certificate of authority.
601.04(3)
(3) Licensing. The commissioner shall issue to any insurer or plan subject to this section a certificate of authority authorizing it to transact the business of insurance in this state if the commissioner is satisfied that it has met all requirements of law and that its methods and practices and the character and value of its assets will adequately safeguard the interests of its insureds and the public in this state. Each certificate shall be issued for a period of no longer than one year and shall expire on May 1. It may be renewed from year to year.
601.04(4)
(4) Fees. Every insurer or plan obtaining or renewing its certificate shall pay the fee required by s. 601.31 (1) (b) or (c).
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600.03(25)(a)
(a) "Insurance" includes any of the following:
600.03(25)(a)1.
1. Risk distributing arrangements providing for compensation of damages or loss through the provision of services or benefits in kind rather than indemnity in money.

NEW LAW SB 492 2012
Has been codified into 600.021 et seq but the bill may be easier to read the changes and  is set forth in this link to a pdf of the law.

None at this time

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