Chapter 424, CONSUMER TRANSACTIONS — INSURANCE

424.101 Short title. This chapter shall be known and may be cited as Wisconsin consumer act—insurance. History: 1971 c. 239.

424.102 Scope. This chapter applies to agreements between a creditor and a debtor under which insurance is provided or is to be provided in relation to consumer credit transactions. History: 1971 c. 239; 1973 c. 3.

424.103 Application of general definitions. The definitions in s. 421.301 shall apply to this chapter. History: 1973 c. 3; 1981 c. 390 s. 252. SUBCHAPTER II CONSUMER CREDIT INSURANCE

424.201 Definition “consumer credit insurance”. “Consumer credit insurance” means insurance, other than insurance on property, by which the satisfaction of debt in whole or in part is a benefit provided, but does not include: (1) Insurance issued as an isolated transaction on the…

424.202 Charge for insurance. (1) Except as otherwise provided in this chapter and subject to the provisions on additional charges (s. 422.202), and maximum charges (s. 422.201) a creditor may agree to provide insurance, and may contract for and receive a charge for insurance sep…

424.203 Conditions applying to insurance to be provided by creditor. (1) When the parties agree that consumer credit insurance shall be provided, at the time the indebtedness is incurred there shall be delivered to the customer the individual policy, a group certificate of insura…

424.204 Maximum charge by creditor for insurance. (1) Except as provided in sub. (2), if a creditor contracts for or receives a charge for insurance, the amount charged for the insurance may not exceed the premium to be charged by the insurer, as computed at the time the charge t…

424.205 Refund or credit required. (1) Upon prepayment in full of a consumer credit transaction by the proceeds of consumer credit insurance, the customer or the customer’s estate is entitled to a refund of any portion of a separate charge for insurance which by reason of prepaym…

424.206 Deferral, refinancing and consolidation agreements. (1) The creditor may not receive a separate charge for insurance in connection with a deferral (s. 422.204), a refinancing (s. 422.205) or a consolidation (s. 422.206) unless: (a) The customer agrees in writing at the ti…

424.207 Term of insurance. (1) Consumer credit insurance provided by a creditor may be subject to the furnishing of evidence of insurability satisfactory to the insurer. Whether or not such evidence is required, the term of the insurance shall commence no later than when the cust…

424.208 Amount of insurance. (1) The initial amount of credit life insurance shall not exceed the total amount repayable under the contract of indebtedness however the indebtedness may be repayable, but in cases where an indebtedness is repayable in substantially equal installmen…

424.209 Filing and approval of rates and forms. Cross-reference: See definitions in s. 421.301. SUBCHAPTER I GENERAL PROVISIONS

424.301 Restrictions on property insurance. (1) A creditor may not contract for a separate charge or receive a separate charge for insurance against loss of or damage to property in which the creditor holds a security interest or to property leased under a motor vehicle consumer …

424.302 Insurance on creditor’s interest only. If a creditor contracts for or receives a separate charge for insurance against loss of or damage to property, the risk of loss or damage not willfully caused by the customer is on the debtor only to the extent of any deficiency in t…

424.303 Cancellation by creditor. (1) A creditor shall not request cancellation of a policy of property or liability insurance except after the customer’s default (s. 425.103), or in accordance with a written agreement by the customer at any time other than when the original tran…

424.304 Cancellation by customer. (1) Following the sale of any insurance product under s. 422.202 (1) (b), the customer has the right to cancel the insurance until 30 days after the policy is mailed or otherwise delivered to the customer. The creditor shall provide the customer …

424.401 Cancellation by customer. (1) Following the sale of any insurance product under s. 422.202 (2s) (a) 2., including insurance described in s. 424.301 (1m), or, if for a term of more than one year, any future service or motor club service contracts under s. 422.202 (2s) (a) …

424.402 Insurance cancellation credit or payment. (1) Any customer who cancels insurance or a service contract under s. 424.304 or 424.401 shall receive one of the following: (a) A credit against the balance of the customer’s obligation or account in the amount of the insurance p…

424.501 False, misleading or deceptive insurance solicitation. (1) A creditor may not solicit or offer for sale any insurance product in connection with a consumer credit transaction in any manner that is false, misleading or deceptive or that omits to state material information …

424.502 Insurance commissions; limitations. A creditor or insurer may not pay to an employee of the creditor who participates in the processing of consumer credit transactions any commission or bonus that exceeds an amount equal to 25 percent of the employee’s annual earnings for…

424.601 Cooperation between administrator and commissioner of insurance. The administrator and the commissioner of insurance shall consult and assist one another in maintaining compliance with this chapter. They may jointly or severally pursue investigations, prosecute suits and …

424.602 Administrative action of commissioner of insurance. To the extent that the commissioner of insurance’s responsibility under this chapter requires, the commissioner shall issue rules with respect to insurers and with respect to refunds (s. WCA — INSURANCE 424.205), forms, …