Bulletin, December 19, 2024, Agent Terminations for Cause

Last Updated: December 19, 2024

Date: December 19, 2024 ​
To: Insurance Companies with Wisconsin Agent Appointments
From: Nathan Houdek, Commissioner of Insurance
Subject: Agent Terminations for Cause

 Bulletin20241219TFC.pdf


Reminder to Insurance Companies: Reporting Agent Appointments and Terminations

Under Wis. Stat. § 628.11, insurers must report all agent appointments and terminations to the commissioner at intervals established by rule. Per Wis. Admin. Code § Ins 6.57(2), insurers must submit notice of agent terminations within 30 calendar days of the termination date in a manner prescribed by the commissioner. To meet these requirements, insurers must submit notice of agent terminations electronically through nipr.com or an NIPR-authorized business partner. This applies even if the agent has also been reported for fraud through the OFRS portal.

Termination Reporting Requirements:

  • Timing: Notices of agent terminations must be filed within 30 calendar days of the termination date.
  • For Cause Terminations: If termination is "for cause," insurers must submit supporting documentation within 30 days. This documentation does not need to prove a violation but should outline situations where violations may exist. Refer to the Termination for Cause Submission Checklist for required documentation.

If new reportable information is discovered after the initial filing, insurers or their representatives must promptly notify the commissioner in writing.

Failure to Comply:
Failure to provide the required documentation may result in a forfeiture demand under Wis. Stat. § 601.42.

Definitions and Additional Resources:

  • Terminations requiring "for cause" notification are defined in Wis. Admin. Code §§ Ins 6.59(5)(d) and Ins 6.57(2)(b).
  • For more details, visit OCI Initial Agent Appointments.