Section 6.58. Licensing of insurance intermediary firms as insurance agents.

 

(1)   Purpose. The purpose of this rule is to establish procedures for licensure of insurance intermediary firms as insurance intermediaries, reinsurance intermediaries or managing general agents.

(1m)   Definition. In this section "firm" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.

(2)   License. Any firm may obtain an insurance intermediary firm license under this section.

(3)   Procedure.

(a) Application for a permanent intermediary license, reinsurance intermediary license or managing general agent license for a corporation or partnership shall be made on application form 11-50 or, for residents of states that have signed a declaration of uniform treatment with Wisconsin, the NAIC Uniform Application for Business Entity Non-Resident License/Registration form and filed with the commissioner of insurance. The application shall be accompanied by:

1. A licensing fee of $100.00;

2. Certification that the articles of incorporation or association include the intent, in good faith, to do business as an intermediary, reinsurance intermediary or managing general agent;

3. Certification that the insurance intermediary firm will transact business in such a way that all acts that may only be performed by a licensed intermediary are performed exclusively by natural persons who are licensed under s. 628.04 , Stats., and functioning within the scope of the license, and a list of such persons;

4. If the insurance intermediary firm is domiciled outside of Wisconsin, an agreement to be subject to the jurisdiction of the commissioner and the courts of this state on any matter related to the insurance intermediary firm's insurance activities in this state, on the basis of service of process under ss. 601.72 and 601.73 , Stats.; and

5. A list of all partners, directors or principal officers or persons in fact having comparable power.

6. In the case of a corporation the application must be signed by an officer. In the case of a partnership the application must be signed by a partner.

7. Any bond, policy, designation or information required under s. Ins 47.02 (3) or (5) .

(b) Determination of the acceptance or rejection of a completed application shall be made within 84 days. A completed application consists of form OCI 11-50 or the NAIC Uniform Application for Business Entity Nonresident License/Registration form and other required material described in par. (a) .

(4)   Standards of competence and trustworthiness.

(a) For partners, directors or principal officers who are licensed at the time of application under sub. (4) as insurance intermediaries, reinsurance intermediaries or managing general agents, those standards as set [forth] in s. Ins 6.59 (5) shall apply in lieu of the standards set forth in this section.

(b) For partners, directors or principal officers who are not licensed at the time of application under sub. (4) as insurance intermediaries, reinsurance intermediaries or managing general agents, the following criteria may be used in assessing trustworthiness and competence:

1. `Criminal record.' The conviction for crimes which are substantially related to insurance.

2. `Accuracy of information.' Any material misrepresentation in the information submitted on form 11-50.

3. `Regulatory action.' Any regulatory action taken with regard to any license held, such as insurance licenses in other states, real estate licenses and security licenses.

4. Other criteria which the commissioner considers evidence of untrustworthiness or incompetence.

(5)   Fees.

(a) Biennially, at least 60 days prior to February 15 of even numbered years, a regulation fee notice of $35.00 for resident and $70.00 for nonresident insurance intermediary firms, reinsurance intermediaries and managing general agents will be sent to each entity by first class mail at the address on file with the office of the commissioner of insurance.

(b) If payment of the biennial regulation fee is not made prior to February 15, in a payment type prescribed by the commissioner, the license will be revoked.

(c) The license will be revoked if payment is not made within 60 days after February 15.

(6)   Notification of changes. Each insurance intermediary firm licensed or applying for a license shall, within 30 days, notify the commissioner of insurance in writing of any change in its business mailing address, location of the business records, or a change in the name and address of the designated representative.

History: Cr. Register, August, 1980, No. 296 , eff. 9-1-80; am. (5) (a), Register, September, 1981, No. 309 , eff. 10-1-81; cr. (6), Register, September, 1981, No. 309 , eff. 1-1-82; r. and recr. (2), r. (3) and (8), renum. (4) to (7) to be (3) to (6), Register, April, 1982, No. 316 , eff. 5-1-82; r. form 11-50, Register, October, 1982, No. 322 , eff. 11-1-82; am. (3) (a) to (f), Register, December, 1984, No. 348 , eff. 1-1-85; correction in (5) made under s. 13.93 (am) (b) 7., Stats., Register, December, 1984, No. 348 ; emerg. am. (1), (3) (intro.), (a) 1. and 2., (4) (a), (b) (intro.) and 1., (5) (a) and (6), cr. (3) (a) 7., eff. 3-12-93; am (1), (3) (intro.), (a) 1. and 2., (4) (a), (b) (intro.) and 1., (5) (a) and (6), cr. (3) (a) 7., Register, July, 1993, No. 451 , eff. 8-1-93; emerg. am. (5) (a), eff. 10-9-95; am. (5) (a), Register, February, 1996, No. 482 , eff. 3-1-96; cons. and renum. (3) (intro.) and (a) (intro.) to be (3) (a) (intro.) and am., am. (3) (b), Register, January, 1999, No. 517 , eff. 2-1-99; CR 01-074 : am. (1), (2), (3) (a) 3. and 4., (5) and (6), Register January 2002 No. 553 eff. 2-1-02; CR 05-111 : am. (3) (b) and (5) (a) Register October 2006 No. 610 , eff. 11-1-06; CR 09-022 : am. (5) (a) and (b) Register August 2009 No. 644 , eff. 9-1-09.

Note

Copies of forms referenced in ss. Ins 6.58 and 6.59 can be obtained at the office of the commissioner of insurance. Microsoft Windows NT 6.1.7601 Service Pack 1 A missing word is shown in brackets. Microsoft Windows NT 6.1.7601 Service Pack 1 Intermediary corporations and partnerships are subject to the recordkeeping requirements as set forth in s. Ins 6.61 (1) . Microsoft Windows NT 6.1.7601 Service Pack 1 A free copy of each form referenced in this section may be obtained from the office of the commissioner of insurance, P.O. Box 7872, Madison, WI 53707-7872 or on the office of the commissioner of insurance website at http://oci.wi.gov/ . Microsoft Windows NT 6.1.7601 Service Pack 1