By: MIsha Lee | IIAW Lobbyist

This article was originally published in the May 2022 Wisconsin Independent Agent. 

Governor Tony Evers signed 2021 Wisconsin Act 260 into law this past month. The Act updates our state statutes to establish that before an annuity is sold, it is considered to be in the best interest of the consumer. The legislation passed both houses unanimously and was heavily supported by various Life Insurance interest groups.

Under the law that formally goes into effect on November 16, 2022, before a financial professional recommends an annuity to a consumer, they must first disclose their role in the transaction and any material conflict of interest. Financial professionals are also required to document their recommendation and justification in written form to ensure that they made the recommendation to address the consumer’s needs and objectives. The law is intended to provide additional consumer protections and awareness by creating a higher standard for selling annuities.

The original legislation was introduced by State Senator Rob Stafsholt (R-New Richmond) and State Representative Kevin Petersen (R-Waupaca), both of whom are members of the standing Insurance committees and strong advocates for the insurance industry.

Also in April, the Governor signed 2021 Wisconsin Act 232 which was recommended this session by the Worker's Compensation Advisory Council (WCAC) as part of the traditional Workers’ Compensation Agreed Upon Bill negotiated over many months by Labor and Management with strong insurance industry input. Three insurer representatives from West Bend Mutual, Sentry Insurance and Liberty Mutual currently serve as non-voting members of the council. It’s the first WC Agreed Bill that’s been enacted in several legislative sessions and that received less legislative scrutiny this time around than from prior session bills.

WI Act 232 makes various changes to the workers’ compensation law, including:

• Increases the maximum weekly compensation rate for

   permanent partial disability from $362 to $415 for

   injuries occurring before January 1, 2023, and to $430

   for injuries occurring on or after that date.

• Part-time employment and wage expansion - The

   Act replaces the provision in current law regarding

   employees who are members of a regularly-scheduled

   class of part-time employees with a provision that

   applies to employees who work less than full time.

   Under this provision, an injured employee's average

   weekly wage is calculated as the greater of 1) The

   hourly rate at the time of injury multiplied by the

   average number of hours worked per week for the 52

   calendar weeks before his or her injury or 2) The actual

   average weekly earnings of the employee for the 52

   calendar weeks before his or her injury.

• Observers in examinations - The Act allows an

   employee to have an observer, chosen and provided

   by the employee, present during a medical

   examination that is requested by an employer or

   insurer following a claim for worker's compensation.

• The Act provides that any person, who at any

   time employs three or more employees for services

   performed in this state, is subject to the worker's

   compensation law and specifies that a person

   becomes subject to that law on the day on which the

   person employs three or more employees for services

   performed in this state.

The Legislature has now adjourned its regular floor session pursuant to Senate Joint Resolution 1 (SJR1) and legislators have returned to their respective districts to campaign for reelection in their newly drawn districts. The fall partisan primary will be held on Tuesday, August 9 and the fall general election is on Tuesday, November 8.