Wis. Admin. Code Office of the Commissioner of Insurance Ins 22.03

Current through October 28, 2024

Section Ins 22.03 - Limited regulation

(1) Legal expense insurance plans which market plans which comply with all the following provisions are subject only to the requirements listed in subs. (2) and (3):

(a) Except as provided by par. (c), the plan's legal services are limited to advice, consultation, preparation of a simple will or power of attorney or other simple, routine legal documents, and do not include representation in litigation except as provided in par. (c);

(b) The total annual cost including all fees, charges, or other consideration for one year of coverage under the plan does not exceed $200 per contract holder;

(c) Legal services other than those described under par. (a) provided under the plan are charged at predetermined or reduced rates which are not substantially below the usual charge by the same attorney for those services, but not less than 70% of the rate usually charged nonparticipants for the same service;

(d) A participant in the plan is not obligated to continue participation in the plan or to make further payments or to pay any fee or penalty to the plan if the participant wishes to withdraw from the plan at any time;

(e) A copy of the legal expense insurance contract and the form of agreement utilized under par. (f) is filed with the commissioner; and

(f) All legal services are to be provided either by partners, members, or employes of the plan or by individuals who have a written agreement to provide legal services to plan participants, which agreement includes provisions which:

1. Waive any liability of plan participants for compensation for services provided by the contractor if the services are covered by the plan; and

2. Require legal services must be rendered to the participants regardless of any breach of the contract by the plan including, but not limited to, the plan's failure to make payments or the plan's insolvency.

(2) Any plan described in sub. (1) is subject to only the following statutes and any related administrative rule:

(a) Sections 601.41 to 601.45, Stats.;

(b) Sections 601.61 to 601.73, Stats.;

(c) Sections 628.34 to 628.46, Stats.;

(d) Chapter 630, Stats.; and

(e) Section 631.36, Stats.

(3) Any plan described in sub. (1) shall reply promptly in writing or other designated form supplying information requested by the commissioner in writing.

Wis. Admin. Code Office of the Commissioner of Insurance Ins 22.03

Cr. Register, January, 1989, No. 397, eff. 2-1-89.