Enforcement, Hearings & Security Fund

4 min read

Hearings and Due Process

Wisconsin builds in serious procedural protections. The Commissioner has to hold a hearing before issuing most orders or adopting most rules, and hearings have to comply with the procedures in ch. 227, Wis. Stat. (the Administrative Procedure Act) and ch. Ins 5, Wis. Adm. Code. There are a few exceptions where no hearing is required:

Failure to pay a license fee when due. The Commissioner may revoke a license without a hearing.
Failure to complete continuing education. The Commissioner may revoke a license without a hearing.
Delinquent taxes or unemployment insurance contributions, certified by the Department of Revenue or Department of Workforce Development. The license must be revoked.
Consent revocations. If the Commissioner and the intermediary agree, the intermediary can consent to revocation without a hearing.
Emergency suspensions. If public health, safety, and welfare require emergency action, the Commissioner can summarily suspend a license. Outside of those situations, an intermediary facing revocation, suspension, or limitation of a permanent license is entitled to a hearing and an opportunity for judicial review. And before being denied an original license, an applicant has the right to a hearing to appeal the denial. When the Commissioner does issue an order without a hearing, anyone aggrieved by it has thirty days from the mailing of the order to demand a hearing in writing. Miss the thirty days and you’ve waived your right. The Commissioner then has to hold the hearing not less than ten days and not more than sixty days after delivery of the request. After a final order, any aggrieved party has twenty days to petition for a rehearing. Filing the petition doesn’t automatically stop the order from taking effect, but the Commissioner can grant rehearing if there was a material error of law or fact, or if new evidence justifies revisiting the decision. If twenty days pass with no action, the petition is considered denied.

Sidenote

A note on self-incrimination

In an OCI hearing, you can’t refuse to testify just because the testimony might be self-incriminating. If you’re forced to testify after claiming the privilege, you can’t then be criminally prosecuted for the acts you were compelled to talk about. But you can still be prosecuted for perjury, false swearing, or contempt committed during the testimony itself. The privilege protects you from prosecution for the underlying conduct, not for lying about it.

The Insurance Security Fund

Imagine the worst-case scenario: a Wisconsin insurer goes bankrupt and a court orders it liquidated. Policyholders are sitting on policies that suddenly might not pay claims. What happens to them? That’s where the Insurance Security Fund comes in. It exists to provide certain protections to insureds in the event of an insurer’s liquidation. The money in the fund comes from assessments against insurers licensed to transact business in Wisconsin. The fund is administered by a board that includes the attorney general, the state treasurer, and the Commissioner of Insurance. The board’s primary job is to oversee the adjudication of unpaid claims when a court orders an insurer liquidated. It’s a safety net — not a guarantee of every dollar, but a protection that’s especially important to mention when you’re asked about an unauthorized insurer or a risk retention group. Those aren’t protected by the fund, which is one of the reasons applicants need to be warned about them.

Enforcement, Hearings & Security Fund

Hearings and Due Process

Failure to pay a license fee when due. The Commissioner may revoke a license without a hearing.
Failure to complete continuing education. The Commissioner may revoke a license without a hearing.
Delinquent taxes or unemployment insurance contributions, certified by the Department of Revenue or Department of Workforce Development. The license must be revoked.
Consent revocations. If the Commissioner and the intermediary agree, the intermediary can consent to revocation without a hearing.
Emergency suspensions. If public health, safety, and welfare require emergency action, the Commissioner can summarily suspend a license. Outside of those situations, an intermediary facing revocation, suspension, or limitation of a permanent license is entitled to a hearing and an opportunity for judicial review. And before being denied an original license, an applicant has the right to a hearing to appeal the denial. When the Commissioner does issue an order without a hearing, anyone aggrieved by it has thirty days from the mailing of the order to demand a hearing in writing. Miss the thirty days and you’ve waived your right. The Commissioner then has to hold the hearing not less than ten days and not more than sixty days after delivery of the request. After a final order, any aggrieved party has twenty days to petition for a rehearing. Filing the petition doesn’t automatically stop the order from taking effect, but the Commissioner can grant rehearing if there was a material error of law or fact, or if new evidence justifies revisiting the decision. If twenty days pass with no action, the petition is considered denied.

Sidenote

A note on self-incrimination

The Insurance Security Fund

Enforcement, Hearings & Security Fund

Hearings and Due Process

Failure to pay a license fee when due. The Commissioner may revoke a license without a hearing.
Failure to complete continuing education. The Commissioner may revoke a license without a hearing.
Delinquent taxes or unemployment insurance contributions, certified by the Department of Revenue or Department of Workforce Development. The license must be revoked.
Consent revocations. If the Commissioner and the intermediary agree, the intermediary can consent to revocation without a hearing.
Emergency suspensions. If public health, safety, and welfare require emergency action, the Commissioner can summarily suspend a license. Outside of those situations, an intermediary facing revocation, suspension, or limitation of a permanent license is entitled to a hearing and an opportunity for judicial review. And before being denied an original license, an applicant has the right to a hearing to appeal the denial. When the Commissioner does issue an order without a hearing, anyone aggrieved by it has thirty days from the mailing of the order to demand a hearing in writing. Miss the thirty days and you’ve waived your right. The Commissioner then has to hold the hearing not less than ten days and not more than sixty days after delivery of the request. After a final order, any aggrieved party has twenty days to petition for a rehearing. Filing the petition doesn’t automatically stop the order from taking effect, but the Commissioner can grant rehearing if there was a material error of law or fact, or if new evidence justifies revisiting the decision. If twenty days pass with no action, the petition is considered denied.

Sidenote

A note on self-incrimination

The Insurance Security Fund

Enforcement, Hearings & Security Fund

Hearings and Due Process

Failure to pay a license fee when due. The Commissioner may revoke a license without a hearing.
Failure to complete continuing education. The Commissioner may revoke a license without a hearing.
Delinquent taxes or unemployment insurance contributions, certified by the Department of Revenue or Department of Workforce Development. The license must be revoked.
Consent revocations. If the Commissioner and the intermediary agree, the intermediary can consent to revocation without a hearing.
Emergency suspensions. If public health, safety, and welfare require emergency action, the Commissioner can summarily suspend a license. Outside of those situations, an intermediary facing revocation, suspension, or limitation of a permanent license is entitled to a hearing and an opportunity for judicial review. And before being denied an original license, an applicant has the right to a hearing to appeal the denial. When the Commissioner does issue an order without a hearing, anyone aggrieved by it has thirty days from the mailing of the order to demand a hearing in writing. Miss the thirty days and you’ve waived your right. The Commissioner then has to hold the hearing not less than ten days and not more than sixty days after delivery of the request. After a final order, any aggrieved party has twenty days to petition for a rehearing. Filing the petition doesn’t automatically stop the order from taking effect, but the Commissioner can grant rehearing if there was a material error of law or fact, or if new evidence justifies revisiting the decision. If twenty days pass with no action, the petition is considered denied.

Sidenote

A note on self-incrimination