General Wisconsin Insurance Laws

False Advertising

Any untrue, deceptive, or misleading statement about a policy or insurer

Rebating

Offering something of value not in the policy to induce a sale (sharing commissions or returning extra premium)

Churning

Replacing a policy mainly to generate commissions without benefiting the client

Twisting

Misleading comparisons used to persuade a policyholder to switch policies

Illegal Inducement

Offering anything of value not stated in the contract to encourage purchase (special favors, financial assets, prizes)

Unfair Discrimination

Treating similar-risk individuals differently without actuarial justification

Coercion

To require, as a condition to a loan, that the applicant purchase insurance from a specific insurer

What do Boycott / Coercion / Intimidation involve?

Actions that restrict competition or force someone to buy insurance

Free choice of insurer

The consumer’s right to choose their own insurer.

Are insurers allowed to charge more than the filed premium? (Extra Charges)

No

Can an insurer, intermediary, or employee influence the employer’s hiring decisions based on an insurance contract?

No

What is prohibited for government officials regarding insurance?

Using authority to force someone to buy insurance

What is home solicitation?

Selling insurance at a residence or outside the agent’s office

What must an agent disclose during home solicitation?

• Name

• Company

• That they’re selling insurance

• Type of insurance

Prohibited sales tactics

• Pretending to conduct a survey

• Offering fake “limited-time” deals

What is prohibited regarding certificates?

Altering or misrepresenting policy coverage

Insurers cannot refuse, cancel or deny insurance coverage based on:

• Past criminal record;

• Physical condition or developmental disability;

• Past mental disability;

• Age;

• Marital status;

• Sexual orientation; and

• Moral character

What must insurers provide annually?

Privacy notice explaining data collection and sharing

What right do consumers have regarding data sharing?

The right to opt out

What is required to release medical info?

Written authorization with specific details

How must insurers dispose of medical info?

Carefully and securely

Misrepresentation

False statement that may void policy

Warranty

A statement guaranteed to be absolutely true

For what reasons can a policy be canceled midterm?

• Nonpayment

• Misrepresentation

• Risk changes.

What does FCRA regulate?

Consumer data accuracy, privacy, and reporting

Investigative consumer reports can’t be made unless…

The consumer is notified

What must happen if coverage is denied due to a report?

The applicant must be notified and given the reporting agency info

Fraud

Intentional deception

Standard rule for renewal (unless properly nonrenewed)?

Policy is automatically renewed for the same term length