Wis. Stat. § 101.654 — WI Code / Chapter 101 / Section 101.654
Section 101.654
Status: in_force

(2) An applicant for a certificate of financial responsibility shall provide to the satisfaction of the department proof of all of the following:

(a) That the applicant has in force one of the following:

1. A bond endorsed by a surety company authorized to do business in this state of not less than $5,000, conditioned upon the applicant complying with all applicable provisions of the one- and 2-family dwelling code and any ordinance enacted under s. 101.65 (1) (a) .

2. A policy of general liability insurance insuring the applicant in the amount of at least $250,000 per occurrence because of bodily injury to or death of others or because of damage to the property of others and issued by one of the following:

a. An insurer authorized to do business in this state.

b. An insurer that is eligible to provide insurance as a surplus lines insurer in one or more states.

(b) If the applicant is required under s. 102.28 (2) (a) to have in force a policy of worker’s compensation insurance or if the applicant is self-insured in accordance with s. 102.28 (2) (b) or (bm) , that the applicant has in force a policy of worker’s compensation insurance issued by an insurer authorized to do business in this state or is self-insured in accordance with s. 102.28 (2) (b) or (bm) .

(c) If the applicant is required to make state unemployment insurance contributions under ch. 108 or is required to pay federal unemployment compensation taxes under 26 USC 3301 to 3311 , that the applicant is making those contributions or paying those taxes as required.

(2m) If an applicant wishes to use a bond under sub. (2) (a) 1. of less than $25,000 to comply with sub. (2) (a) , the applicant shall agree not to perform any work on a dwelling for which the estimated cost of completion is greater than the amount of the bond. The department shall indicate any restriction under this subsection on the certificate of financial responsibility issued under sub. (3) .

(3)

(a) Upon receipt of all of the following, the department shall issue to the applicant a certificate of financial responsibility:

1. The proof required under sub. (2) .

2. The fee required by rules promulgated under s. 101.63 (2m) .

3. Proof of completing at least 12 hours in an educational course approved by the department that satisfies all of the following:

a. The educational course consists of in-person or online instruction.

b. The provider of the educational course requires the applicant to show photo identification to register attendance for the course.

c. The educational course includes instruction on accounting, lien law, ethics, and best business practices.

(b) A certificate of financial responsibility issued under this subsection is valid for one year after the date of issuance, unless sooner suspended or revoked.

(4)

(a) A bond or insurance policy required under sub. (2) may not be canceled by the person insured under the bond or policy or by the surety company or insurer except on 30 days’ prior written notice served on the department in person or by 1st class mail or, if the cancellation is for nonpayment of premiums to the insurer, on 10 days’ prior written notice served on the department in person or by 1st class mail. The person insured under the bond or policy shall file with the department proof to the satisfaction of the department of a replacement bond or replacement insurance within the 30-day notice period or 10-day notice period, whichever is applicable, and before the expiration of the bond or policy. The department shall suspend without prior notice or hearing the certificate of financial responsibility of a person who does not file satisfactory proof of a replacement bond or replacement insurance as required by this subsection.

(b) A bond under sub. (2) (a) 1. shall be executed in the name of the state for the benefit of any person who sustains a loss as a result of the person insured under the bond not complying with an applicable provision of the one- and 2-family dwelling code or any ordinance enacted under s. 101.65 (1) (a) , except that the aggregate liability of the surety to all persons may not exceed the amount of the bond.

(5) The department may revoke or suspend a certificate of financial responsibility if any of the following apply:

(a) The holder fails to comply with the continuing education requirements specified under subs. (1) and (1m) .

(b) The holder engages in the construction of a dwelling without a permit required under this chapter.

(c) The holder is convicted of a crime related to the construction of a dwelling.

(d) The holder has been adjudged bankrupt on 2 or more occasions.

History: 1993 a. 126 ; 1995 a. 392 ; 1997 a. 39 ; 2005 a. 200 ; 2007 a. 14 ; 2009 a. 276 ; 2015 a. 55 , 180 ; 2017 a. 16 , 331 ; 2021 a. 237 .