A Wisconsin life insurance settlement bill, SB 513, was taken up by the state Assembly on April 20 and was approved in the early hours of April 21. It is expected to be signed by Wisconsin Gov. Jim Doyle in the next few weeks.
Separately, an annuity suitability bill, SB 572, will be taken up by the Assembly on April 22. It is expected that the bill will also pass and be sent to the Governor for his signature.
The life settlement bill was passed without an amendment that would require disclosure that there are options available to lapsing a policy or surrendering a contract that include life settlements.
A disclosure amendment was offered on April 12 by state Rep. Louis Molepske, Jr., D-71 A.D (Stevens Point, Wisc.) It received a tie 5-5 vote. But a majority vote was needed in order for the amendment to be included in the bill.
However, Wisconsin Commissioner Sean Dilweg wrote to legislators promising to promulgate a rule that would provide such clarification to consumers, according to a representative for state Sen. Robert Wirch, D-District 22 (Kenosha County), who introduced SB 513.
The rule could take a couple of months to develop and must be brought before the legislature to receive legislators’ approval, according to the representative for Sen. Wirch. Legislators agreed that it would be a good thing to promulgate a rule that would provide disclosure to consumers, according to the representative for Sen. Wirch.