Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB432

Introduced
9/15/23  
Refer
9/15/23  
Report Pass
12/7/23  

Caption

Various changes to insurance laws and providing a penalty. (FE)

Impact

The implementation of SB432 is expected to have significant implications for both insurance providers and policyholders in Wisconsin. By reducing regulatory burdens, particularly for small employer insurers and health maintenance organizations, the bill could facilitate easier market entry and potentially lower costs for consumers. However, the modifications to the financial responsibility requirements could lead to concerns regarding consumer protection, especially in situations involving insolvency or financial distress of insurance firms. Adjusting the assessment methodologies may affect the stability of the insurance security fund, raising questions about its capacity to adequately cover claims in times of crisis.

Summary

Senate Bill 432 proposes a series of modifications to Wisconsin's insurance laws, largely administered by the Office of the Commissioner of Insurance. Key provisions of the bill include the elimination of certain application and reporting requirements, adjustments to the assessment calculations for insurance funds, and the authority for the insurance security fund to negotiate contracts with other guaranty associations. The bill also raises the financial penalties for insurance violations involving fraud from $1,000 to $5,000 per instance. These changes aim to streamline procedures and bolster the efficiency of the insurance regulatory framework in the state.

Contention

The areas of contention surrounding SB432 primarily revolve around the balance between regulatory oversight and market freedom. While supporters argue that the bill will reduce unnecessary bureaucratic obstacles, critics express concern that loosening these regulations may undermine consumer protections. The increased penalties for fraudulent practices are seen as a necessary deterrent, but there are worries that the bill may disproportionately benefit larger insurance companies at the expense of smaller firms and, ultimately, consumers. Stakeholders are divided on whether these regulatory relaxations will promote greater competition or lead to a deterioration of standards in the insurance industry.

Companion Bills

No companion bills found.

Previously Filed As

WI AB437

Various changes to insurance laws and providing a penalty. (FE)

WI AB748

Health care costs omnibus, granting rule-making authority, making an appropriation, and providing a penalty. (FE)

WI SB719

Health care costs omnibus, granting rule-making authority, making an appropriation, and providing a penalty. (FE)

WI AB62

Health care costs omnibus, granting rule-making authority, making an appropriation, and providing a penalty. (FE)

WI SB50

Health care costs omnibus, granting rule-making authority, making an appropriation, and providing a penalty. (FE)

WI AB164

Various changes to the unemployment insurance law and federal Reemployment Services and Eligibility Assessment grants. (FE)

WI SB197

Various changes to the unemployment insurance law and federal Reemployment Services and Eligibility Assessment grants. (FE)

WI AB150

Various changes to the unemployment insurance law, federal Reemployment Services and Eligibility Assessment grants, and granting rule-making authority. (FE)

WI SB232

Various changes to the unemployment insurance law, federal Reemployment Services and Eligibility Assessment grants, and granting rule-making authority. (FE)

WI SB3130

INSURANCE-VARIOUS

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