Bulletin, May 23, 2012, Newly Enacted Legislation 2011 Wisconsin Acts 46, 49, 120, 183, 209, 218, 224, 225, and 226

​Last Updated: May 24, 2012

Date: May 23, 2012
To: All Insurers Authorized to do Business in Wisconsin
From: Theodore K. Nickel, Commissioner of Insurance
Subject: Newly Enacted Legislation 2011 Wisconsin Acts 46, 49, 120, 183, 209, 218, 224, 225, and 226


​This bulletin contains a summary of the provisions of 2011 Wisconsin Acts 46, 49, 120, 183, 209, 218, 224, 225, and 226. Please review this bulletin and determine which laws apply to your company. This bulletin is for informational purposes and is not the office's interpretation of these laws. It is recommended that copies of applicable laws be obtained. Copies of any legislation are available from Legislative Documents, 1 East Main Street, Madison, WI 53703, and (608) 266-2400 or through the Legislature's Web site at http://legis.wisconsin.gov.

2011 WISCONSIN ACT 46

Amends ss.15.155 (5), 227.114 (6), 227.114 (7m), 227.14 (2g) (intro.), 227.19 (3) (intro.), 227.19 (3m) and 227.24 (3m) (intro.); and creates s. 227.04, Wis. Stat., Small Business Regulatory Review Board.
Changes the membership of the Small Business Regulatory Review Board (SBRRB). Requires each state agency to assist small businesses in complying with agency rules and encourage small business participation in administrative rule development. Requires state agencies to designate a small business regulatory coordinator and publicize the coordinator's contact information. Requires the SBRRB to evaluate the impact of any proposed rules or emergency rules on small business. The SBRRB can suggest changes or withdrawal of proposed rules or emergency rules.

A complete copy of 2011 Act 46 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/46.

The provisions of Act 46 first apply to administrative rules submitted to the Legislature or to emergency rules submitted after November 15, 2011.

2011 WISCONSIN ACT 49

Creates s. 71.98 (2), Wis. Stat., Imputed income.
Excludes from state taxable income any amounts paid by an employer to provide medical care for the employee's adult child.

A complete copy of 2011 Act 49 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/49.

The provisions of Act 49 apply to taxable years beginning on January 1, 2011.

2011 WISCONSIN ACT 120

Renumbers and amends s. 49.155 (1d) (a); amends ss. 43.09 (1), 48.67 (1), 48.67 (3) (a), 48.67 (3) (b), 48.67 (3) (c), 48.67 (3) (d), 146.40 (1) (aw), 146.40 (2m), 252.23 (4) (a), 252.24 (4) (a), 254.176 (1), 254.176 (3) (intro.), 254.178 (2) (intro.), 254.20 (3) (a), 256.15 (5) (b), 256.15 (6) (a) 2. and 256.15 (8) (b) 3.; and creates ss. 49.45 (2) (a) 11. c., 94.705 (2m), 101.02 (24), 146.40 (2) (am), 250.06 (1m), 251.06 (1) (d), 252.23 (4m), 252.24 (4m), 253.15 (4) (e), 254.176 (3m), 254.178 (2m), 254.20 (4m), 254.62 (3), 254.71 (3m), 255.35 (3m) (b) 9., 299.09, 343.305 (6) (bm), 440.075 and 601.41 (11), Wis. Stat., Applying a service member's military training toward satisfying the training requirements for licenses.
Requires the Commissioner to include any relevant instruction in connection with military service toward satisfying any prelicensing education requirements for licensure. Applicant must satisfy the Commissioner that the instruction is substantially equivalent to the prelicensing education required for licensure.

A complete copy of 2011 Act 120 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/120.

The provisions of Act 120 first apply to license applications received on June 1, 2012.

2011 WISCONSIN ACT 183

Renumbers and amends s. 102.29 (1); amends ss. 16.865 (4), 20.445 (1) (t), 102.03 (4), 102.11 (1) (intro.), 102.13 (2) (c), 102.16 (2) (d), 102.17 (4), 102.35 (1), 102.43 (5), 102.43 (7) (b), 102.44 (1) (am), 102.44 (1) (b), 102.44 (1) (c), 102.49 (1), 102.56 (1), 102.56 (2), 102.59 (1), 102.61 (1), 102.61 (1g) (b), 102.61 (1m) (c), 102.61 (1m) (d), 102.61 (1r) (c), 102.64 (2), 102.66 (1) and 102.66 (2); and creates ss. 102.43 (5) (c), 102.65 (3) and 102.65 (4), Wis. Stat., Various changes to the worker's compensation law.
Makes various changes to the worker's compensation law affecting claims and payments including rates for permanent partial disability, the standard deviation for disputed fees, persons receiving vocational rehabilitation training, compensation for permanent disfigurement, and submission of practitioner's reports to the Department of Workforce Development (DWD). The Act also makes changes to the worker's compensation law supplemental benefit fund and requires DWD to conduct a study on certain aspects of worker's compensation.

A complete copy of 2011 Act 183 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/183.

Act 183 became effective on April 17, 2012. Certain provisions of Act 183 are applicable between April 17, 2012, and December 31, 2012. Other provisions are applicable on April 22, 2012, and January 1, 2013.

2011 WISCONSIN ACT 209

Renumbers ss. 101.19 (1) and 101.19 (3); renumbers and amends s. 440.05 (2); amends ss. 13.75 (1), 13.75 (1m), 13.75 (5), 48.615 (1) (a), 48.615 (1) (b), 48.625 (2) (a), 48.65 (3) (a), 49.45 (42) (c), 94.50 (2), 94.704 (3) (a) (intro.), 95.55 (3) (a), 95.60 (5), 97.17 (4), 97.175 (2), 97.22 (2) (b), 98.145 (2), 98.146 (2), 101.122 (5), 101.16 (3g) (a), 101.19 (2), 101.981 (1) (a), 101.985 (5) (a), 103.34 (13) (a), 103.91 (3), 103.92 (1) (a), 105.06 (2), 105.07 (1), 169.31 (1) (a) 1., 169.31 (1) (d), 169.31 (1) (e) 1., 170.12 (3) (g), 218.04 (3) (c), 218.12 (2) (a), 218.12 (2) (c), 218.12 (2) (d), 218.51 (3) (c), 224.725 (8), 252.23 (4) (a), 252.24 (4) (a), 252.245 (9), 254.176 (3) (e), 254.178 (2) (d), 254.20 (5) (a) (intro.), 254.71 (6) (a), 256.15 (5) (f), 280.15 (2m) (a), 280.15 (3g) (a), 281.17 (3), 285.51 (2) (d), 289.42 (1) (a) 4., 291.05 (7) (a), 299.51 (3) (c), 343.62 (3) (a) 1., 440.05 (intro.), 440.05 (1) (a), 440.44 (1) (b) 3., 446.02 (2) (c), 551.614 (2), 601.31 (1) (intro.), 628.04 (1) (a), 632.69 (2) (b), 633.14 (1) (a) and 938.22 (7) (b); repeals and recreates ss. 13.75 (1) and 13.75 (1m); and creates ss. 29.563 (15), 45.44, 48.615 (1) (e), 48.625 (2) (c), 48.65 (3) (c), 94.10 (2) (cm), 94.10 (3) (cm), 94.10 (3g) (cm), 94.704 (3) (bm), 98.18 (1m), 101.19 (1r), 105.07 (3), 115.28 (7) (f), 125.65 (10), 169.31 (1m), 218.0114 (15) (c), 218.12 (2) (e), 254.20 (5) (c), 281.48 (4s) (e), 440.05 (2) (b), 601.31 (2m), 751.153 and 938.22 (7) (d), Wis. Stat., Veterans license fee waivers.
Requires the Commissioner to grant a one-time fee waiver to eligible veterans for the issuance of an initial covered license.

A complete copy of 2011 Act 209 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/209.

Act 209 is effective for all qualifying license applications beginning on July 1, 2012.

2011 WISCONSIN ACT 218

Creates s. 632.8985, Wis. Stat., Coverage of abortions in health plans sold through exchanges.
Prohibits any qualified health plan sold through a health insurance exchange from providing coverage for abortions.

A complete copy of 2011 Act 218 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/218.

Act 218 became effective on April 20, 2012

2011 WISCONSIN ACT 224

Repeals subchapter III (title) of ch. 618 [precedes s. 618.39] and s. 618.43 (1) (b); renumbers and amends s. 646.31 (4) (a); amends ss. 618.41 (6m), 618.41 (8) (a) (intro.), 618.41 (8) (c), 618.41 (9) (a), 618.43 (1) (a) (intro.), 618.43 (1) (a) 3., 618.43 (1) (d), 618.43 (6), 628.03 (1), 628.05 (1), 628.34 (1) (a), 631.01 (4m), 631.20 (1) (a), 631.20 (1) (c) 9., 631.20 (1m) (a) (intro.), 631.85, 632.32 (2) (ac), 632.32 (4) (a) (intro.), 632.32 (4) (bc), 632.32 (4) (d), 632.32 (4m) (a), 632.32 (4m) (e), 646.01 (2) (b), 646.31 (1) (intro.), 646.35 (1) (b) and 646.35 (6) (b); and creates subchapter III (title) of ch. 618 [precedes s. 618.40], ss. 618.40, 618.41 (12), 618.416, 618.43 (1) (bc), 631.20 (7), 632.32 (2) (ab), 646.03 (4m) and 646.31 (4) (ag), Wis. Stat., Various changes to insurance statutes.
Implements statutory changes needed to comply with the Nonadmitted and Reinsurance Reform Act (NRRA), which modifies how states regulate surplus lines business.

Specifically prohibits intermediaries from issuing a misleading certificate of insurance.

Specifies commercial liability policies are exempt from requirements to offer uninsured motorist, underinsured motorist and medical payments coverages if the incidental coverage for motor vehicles is limited to only non-owned motor vehicles. Specifies commercial automobile liability policies are subject to the requirements to offer uninsured motorist, underinsured motorist and medical payments coverages. Provides minimum coverage limits for exempt policies that do provide such coverages. Clarifies that only one named insured is required to reject medical payments or underinsured motorist coverages.

Clarifies that retained asset accounts are eligible for Wisconsin Insurance Security Fund (fund) protection. Provides definition of "disability insurance" as comprehensive health insurance and major medical health insurance. Clarifies that the maximum obligation applies regardless of the number of policies or contracts. Sets the maximum aggregate liability of the fund for a single risk, loss, or life with respect to benefits for property insurance, liability insurance, and disability insurance at $500,000, while the maximum for other insurance policy or contract types remains at $300,000.

OCI will issue a separate bulletin providing guidance on the surplus lines changes. This bulletin will be posted at oci.wi.gov/bulletin.htm.

A complete copy of 2011 Act 224 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/224.

Act 224 became effective April 20, 2012.

2011 WISCONSIN ACT 225

Creates ss. 628.02 (1) (b) 9. and 632.975, Wis. Stat., Portable electronics insurance.
Clarifies licensing, training, termination of insurance, changes to the policy, compensation and disclosure standards applicable to portable electronics insurance.

A complete copy of 2011 Act 225 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/225.

Act 225 became effective April 20, 2012.

2011 WISCONSIN ACT 226

Renumbers subchapter II (title) of ch. 616 [precedes s. 616.71]; and creates ss. 600.01 (1) (b) 12., 601.31 (1) (kr), subchapter III of ch. 616 [precedes s. 616.50] and s. 628.02 (1) (b) 9, Wis. Stat., Regulating certain service contracts.
Allows new and existing service contract plans to choose to be licensed under the new statute or under the existing rule. Includes standards for licensing of service contract providers and any administrators appointed by providers. Standards also include financial disclosure requirements, service contract form filing with the Commissioner, required contract disclosures, prohibited acts and other record-keeping requirements.

A complete copy of 2011 Act 226 can be viewed at https://docs.legis.wisconsin.gov/2011/related/acts/226.

Act 226 became effective April 20, 2012.

PERSONS TO CONTACT FOR ADDITIONAL INFORMATION

If you have questions, please put them in writing and address them to the appropriate contact person listed below:

Small Business Regulatory Review BoardJennifer Stegall
Jennifer.Stegall@wisconsin.gov
Imputed incomeWisconsin Department of Revenue
(608) 266-2486
income@revenue.wi.gov
Veteran's service related training satisfying prelicensing education requirements ociagentlicensing@wisconsin.gov
or (608) 266-8699
Veteran's license fee waiverRichard West
Rich.West@wisconsin.gov
Auto insuranceRonnie Demergian
Ronnie.Demergian@wisconsin.gov
Worker's compensation insuranceJim O'Malley, DWD
Jim.OMalley@dwd.wisconsin.gov
Surplus linesYvonne Sherry
Yvonne.Sherry@wisconsin.gov
Wisconsin Insurance Security Fund

Abortion coverage in health insurance purchasing exchanges
Richard Wicka
Richard.Wicka@wisconsin.gov
Portable electronics insurance ocicomplaints@wisconsin.gov
Service contractsSteve Junior
Steve.Junior@wisconsin.gov

Karl Albert
Karl.Albert@wisconsin.gov