Laura’s Corner

Wisconsin insurance companies are reminded of their statutory obligations when it comes to agent appointments and terminations, particularly those “for cause.” Recent guidance from Nathan Houdek, Commissioner of Insurance, highlights the importance of adhering to reporting requirements to avoid potential penalties. This blog outlines key points from the December 19, 2024, bulletin to ensure compliance.

Reporting Requirements: Agent Appointments and Terminations

Under Wis. Stat. § 628.11, insurers are required to report all agent appointments and terminations. The Wis. Admin. Code § Ins 6.57(2) specifies that termination notices must be submitted within 30 calendar days of the termination date. (https://oci.wi.gov/Documents/Regulation/Bulletin20241219TFC.pdf)

Electronic Submissions

To comply, insurers must submit termination notices electronically via NIPR.com or an NIPR-authorized business partner, such as Agenzee. Even if an agent has been reported for fraud through the OFRS portal, electronic submission through NIPR remains mandatory.

Terminations “For Cause”

For terminations classified as “for cause,” supporting documentation must be submitted within 30 days. This documentation should outline potential violations and align with the Termination for Cause Submission Checklist. (https://oci.wi.gov/Documents/AgentsAgencies/TFCChecklist.pdf) Insurers must also notify the commissioner promptly if new reportable information arises after the initial filing.

Consequences of Non-Compliance

Failure to meet these reporting requirements may lead to penalties under Wis. Stat. § 601.42. Insurers are urged to take these obligations seriously to avoid forfeitures or regulatory issues.

Definitions and Resources

• For a detailed explanation of “for cause” terminations, refer to Wis. Admin. Code §§ Ins 6.59(5)(d) and Ins 6.57(2)(b).
• Additional guidance on agent appointments is available on the OCI Initial Agent Appointments webpage. (OCI Company Agent Appointments)

Takeaways/Conclusion:

Timely and accurate reporting of agent terminations, particularly “for cause” cases, is critical for Wisconsin insurers to maintain compliance. Leveraging electronic submission platforms such as NIPR.com and NIPR-authorized resellers like Agenzee streamlines the process and ensures compliance with state regulations. Stay informed, follow the checklist, and avoid potential penalties by acting promptly on termination reporting requirements.