138.12 Insurance premium finance companies.

971 words·~4 min read·/wi/chapter-138/138-12

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions. For purposes of this section:

(a)“Division” means the division of banking.

(b)“Insurance premium finance company” means a person engaged in the business of entering into insurance premium finance agreements.

(c)“Licensee” means an insurance premium finance company holding a license issued by the division under this section.

(cm)“Nationwide multistate licensing system and registry” has the meaning given in s. 224.35

(b).

(d)“Premium finance agreement” means an agreement by which an insured or prospective insured promises to pay to an insurance premium finance company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or broker in payment of premiums on an insurance contract together with a service charge or interest charge as authorized and limited by this chapter.

(dm)“Unique identifier” has the meaning given in s. 224.35

(e).

(2)Scope. This section shall not apply to:

(a)Any insurance company or agent defined in s. 628.02 , any savings and loan association, savings bank, sales finance company, motor vehicle installment seller, bank, trust company, licensed lender or credit union authorized to do business in this state, but such organizations, if otherwise eligible, are exempt from the licensing under this section, but subs.

(9)to

(12)and any rules promulgated by the division pertaining to such subsections shall be applicable to all premium finance transactions entered into by such organizations in this state if an insurance policy or any rights thereunder is made the security or collateral for repayment of the debt.

(b)The inclusion of insurance in connection with an installment sale of a motor vehicle or other goods and services.

(d)Life insurance.

(3)Licenses.

(a)No person except those listed in sub.

(a)shall engage in the business of financing insurance premiums in this state without first having obtained a license. Any person who engages in the business of financing insurance premiums in this state without obtaining a license may be fined not more than $200.

(b)A license issued under this section expires on December 31 of the calendar year in which the initial license term began, unless the initial license date is between November 1 and December 31, in which instance the initial license term shall run through December 31 of the following year. The annual license fee is $500 and shall be paid to the division in a form and manner acceptable to the division. Licenses may be renewed or reinstated as provided in s. 224.35

(7).

(c)A licensee shall make an annual report and submit financial statements as provided in s. 224.35

(8).

1. Except as provided in par.

(e), an application for a license under this section shall contain the following:

a. If the applicant is an individual, the applicant’s social security number.

b. If the applicant is not an individual, the applicant’s federal employer identification number.

2. The division may not disclose any information received under subd. 1. to any person except as follows:

a. The division may disclose information under subd. 1. to the department of revenue for the sole purpose of requesting certifications under s. 73.0301 and to the department of workforce development for the sole purpose of requesting certifications under s. 108.227 .

b. The division may disclose information under subd. 1. a. to the department of children and families in accordance with a memorandum of understanding under s. 49.857 .

c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35 .

1. If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a license under this section, shall submit a statement made or subscribed under oath or affirmation to the division that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families.

2. Any license issued or renewed in reliance upon a false statement submitted by an applicant under subd. 1. is invalid.

(f)The division shall utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to applicants and licensees under this section.

(g)An applicant or licensee under this section shall register with, and maintain a valid unique identifier issued by, the nationwide multistate licensing system and registry.

(h)Each licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry as provided in s. 224.35

(6).

(4)Investigation.

(a)Upon the filing of an application and the payment of the required fees under par.

(am)1. , the division shall make an investigation of each applicant and shall issue a license if the division finds the applicant is qualified in accordance with this section. If the division does not so find, the division shall, within 30 days after the division has received the application, notify the applicant and, at the request of the applicant, give the applicant a full hearing, except as follows:

1. An applicant whose application is denied under par.

(b)5. is entitled to a hearing under s. 73.0301

(a)but is not entitled to a hearing under this paragraph.

1m. An applicant whose application is denied under par.

(b)5m. is entitled to a hearing under s. 108.227

(a)but is not entitled to a hearing under this paragraph.

2. An applicant whose application is denied under par.

(b)6. is entitled to notice and a hearing only as provided in a memorandum of understanding entered into under s. 49.857 and is not entitled to a hearing under this paragraph.