Wisconsin Legislative Council
ACT MEMO
One Ea st Ma in Stre e t, Suite 401 • Ma dison, W I 53703 • (608) 266-1304 • le g.council@le gis.wisconsin.gov • http://www.le gis.wisconsin.gov/lc
Prepared by: Kelly McGraw, Staff Attorney April 23, 2024
2023 Wisconsin Act 212
[2023 Assembly Bill 437]
Insurance Regulations
2023 Wisconsin Act 212 makes various changes relating to regulation of the insurance industry.
WISCONSIN RETIREMENT BOARD
Prior law required the Wisconsin Retirement Board to include the Commissioner of Insurance or an
experienced actuary in the Office of the Commissioner of Insurance designated by the commissioner.
The act requires the board to include the commissioner or the commissioner’s designee. The
commissioner may designate the deputy commissioner, chief legal counsel, or chief financial regulator
to service as a member of the board.
CONSULTANT
The act permits the commissioner to enter into a contract for the services of a consultant if both of the
following apply:
The office and the insurance department of another state are coordinating a review on a regulatory
matter.
The other state’s insurance department has already procured the services of the consultant.
INSURANCE SECURITY FUND
The act specifies that the insurance security fund must be composed of five segregated accounts instead
of six, including an insurance and annuities account, which was previously separated into two accounts.
After a liquidation order is issued, the board of directors of the insurance security fund must estimate
separately for each of the five accounts of the insurance security fund, and separately for life insurance
policies and for annuity contracts in the life insurance and annuities account, the amounts necessary to
make the payments provided by the insurance security fund. The board must authorize assessments
separately for each account, and separately for life insurance policies and for annuity contracts in the
life insurance and annuities account.
The act also specifies that, except as provided for administrative assessments, with respect to the life
insurance and annuities account, the board must calculate the assessments separately for life insurance
policies and for annuity contracts. The assessments are a percentage of premiums each insurer receives
in this state in the classes protected by the account for the year immediately preceding the year in which
the board authorizes the assessment. If the assessment data for the year immediately preceding the year
in which the board authorizes the assessment is not available when the assessment is called, then the
board may use the assessment data for the most recent year for which data is available. - 2 -
Additionally, the act permits the insurance security fund to negotiate and contract with other guaranty
associations to provide and receive administrative services, claims services, and other services that are
usual to guaranty associations.
OFFICE OF THE COMMISSIONER OF INSURANCE NONDISCLOSURE
Prior law permitted the Office of the Commissioner of Insurance to refuse to disclose and to prevent any
other person from disclosing various information obtained by the office from, or provided by the office
to, various entities under a pledge of confidentiality or for the purpose of assisting or participating in
monitoring activities or in the conduct of an inquiry, investigation, or examination.
The act specifies that the Office of the Commissioner of Insurance may refuse to disclose and may
prevent any other person from disclosing various information obtained by the office from, or provided
by the office to, the insurance security fund under a pledge of confidentiality or for the purpose of
assisting or participating in monitoring activities or in the conduct of an inquiry, investigation, or
examination.
FAMILY CARE PROGRAM
The act specifies that a health maintenance organization participating in the family care program is
subject to state law on insolvency funding in the regulation of care management organizations.
FORUM SELECTION PROVISION
The act specifies that the articles or bylaws of a service insurance corporation may require, consistent
with applicable jurisdictional requirements, that any or all claims pertaining to the internal affairs of
the service insurance corporation must be brought solely and exclusively in the courts in this state.
ENFORCEMENT PROCEDURE
The act specifies that whoever violates an insurance statute or rule, intentionally aids a person in
violating an insurance statute or rule, or knowingly permits a person over whom he or she has authority
to violate an insurance statute or rule must, if the violation involves or constitutes fraud or
misrepresentation, forfeit to the state not more than $5,000 for each violation.
TERMINATION OF LICENSE
Prior law authorized the commissioner to revoke, suspend, or limit the license of an intermediary or
individual navigator if the commissioner found the licensee to not be of good character, among other
findings.
The act specifies that, after a hearing, the commissioner may revoke, suspend, or limit in whole or in
part the license of any intermediary or individual navigator if the commissioner finds that the licensee
is not competent or trustworthy, instead of the previous provision for a licensee who is not of good
character.
NOTIFICATION TO AGENTS OF REVOCATION
Prior law required the commissioner to notify all agents of the insurer upon issuance of any order
limiting, suspending or revoking an insurer’s authority to do business in this state. - 3 -
The act specifies that upon issuance of any order revoking an insurer’s authority to do business in this
state, the insurer must within 10 business days and by separate written notice notify all agents
appointed with the insurer and must provide a copy of the notice to the commissioner. The
commissioner must publish a notice of the revocation in whatever reasonable form the commissioner
designates.
UNIFORM EMPLOYEE APPLICATION FORM
The act eliminates the following prior law requirements:
The commissioner must by rule develop, in consultation with the appropriate advisory council or
committee designated by the commissioner, a uniform employee application form that a small
employer insurer must use when a small employer applies for coverage under a group health benefit
plan offered by the small employer insurer.
The commissioner must by rule prescribe uniform questions and the format for applications for
individual major medical health insurance policies. An insurer may use only the prescribed
questions and format for individual major medical health insurance policy applications.
Every small employer insurer must use the uniform employee application form developed by the
commissioner when a small employer applies for coverage under a group health benefit plan offered
by the small employer insurer.
STUDY
The act eliminates the following prior law requirements:
The commissioner must study whether, in certain types of transactions with health care providers,
compliance by health insurers with certain standards is likely to reduce the cost of health care
administration.
The commissioner, in consultation with the Department of Health Services, must study the
feasibility and cost-effectiveness of health insurance identification cards and a computerized
support system for the cards.
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NAVIGATOR FINANCIAL RESPONSIBILITY
The act eliminates the following prior law requirement:
Each entity that is a navigator or individual navigator must furnish a bond in an amount no less
than $100,000 from an insurer authorized to do business in this state or provide other evidence of
financial responsibility capable of protecting all persons against the wrongful acts,
misrepresentations, errors, omissions, or negligence of the navigator.
Effective date: March 24, 2024
For a full history of the bill, visit the Legislature’s bill history page.
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The act also removes rule making authority and reporting requirements related to the study.