Wisconsin Administrative Code › Office of the Commissioner of Insurance › Chapter Ins 2 - Life Insurance › Section Ins 2.16 - Advertisements of and deceptive practices in life insurance and annuities

Current through June 24, 2024
(1) PURPOSE. This section safeguards the
			 interests of prospective purchasers of life insurance and annuities by
			 providing the prospective purchasers with clear and unambiguous statements,
			 explanations, advertisements and written proposals concerning the life
			 insurance policies and annuity contracts offered to them. The commissioner may
			 best achieve this purpose by establishing certain minimum standards of and
			 guidelines for conduct in the advertising and sale of life insurance and
			 annuities. These minimum standards and guidelines prevent unfair competition
			 among insurers and are conducive to the accurate presentation and description
			 to the insurance buying public of policies or contracts of life insurance and
			 annuities. This section interprets and implements, including but not limited
			 to, the following Wisconsin statutes: ss.
			 601.01(2) and
			 (3) and
			 628.34,
			 Stats. The requirements of this section are in addition to and not a substitute
			 for the requirements set forth in ss.
			 Ins
			 2.14,
			 2.15, and
			 2.17.
(2) SCOPE.
(a) Unless otherwise provided under a
			 particular provision of this section, the section applies to any person who
			 makes, directly or indirectly on behalf of an insurer, fraternal benefit
			 society, or intermediary, an advertisement, representation, or solicitation in
			 this state of any insurance specified in s.
			 Ins 6.75(1)
			 (a).
(b) This section does not apply to:
1. Credit life insurance.
2. Group life insurance purchased,
			 established, or maintained by an employer including a corporation, partnership,
			 or sole proprietorship, or by an employee organization, or both, except for
			 group life insurance purchased, established or maintained by these persons in
			 connection with a multiple employer welfare arrangement as defined under
			 29
			 USC 1002(40).
3. Life insurance policies issued in
			 connection with pension and welfare plans as defined by and which are subject
			 to the federal employee retirement income security act of 1974 (ERISA),
			 29 USC
			 1001 to
			 1461.
4. Variable life insurance policies under
			 which the death benefits and cash values vary in accordance with unit values of
			 investments held in a separate account.
5. Variable annuities.
6. Group annuity and pure endowment contracts
			 purchased under a retirement plan or plans of deferred compensation established
			 or maintained by an employer, including a partnership or sole proprietorship,
			 or by an employee organization, or both.
7. Immediate annuity contracts, which are
			 arrangements under which payments begin within 13 months of the issue
			 date.
8. Annuity contracts issued
			 in connection with employee benefit plans as defined by
			 29
			 USC 1002(3) of the federal
			 employee retirement income security act of 1974 (ERISA), except annuity
			 contracts issued in connection with plans providing for the purchase of annuity
			 contracts solely by reason of salary reduction agreements under
			 26 USC
			 403(b) of the internal
			 revenue code.
9. A policyholder's
			 deposit account established solely to facilitate payment of regular
			 premiums.
10. Settlement options
			 under life insurance or annuity contracts.