By: Misha Lee, IIAW Lobbyist

Former Lieutenant Governor Rebecca Kleefisch officially launched her anticipated gubernatorial campaign setting in motion a high stake, competitive race for Wisconsin Governor next year. Kleefisch, 46, is the first known Republican candidate to join the race in a challenge to first term incumbent Democratic Governor Tony Evers, who announced that he’s running for re-election. Kleefisch served as Lieutenant Governor under former Governor Scott Walker from 2011 to 2019. The only other announced GOP candidate so far is businessman Jonathan Wichmann, a relatively unknown name in the race. Other names mentioned as possible Republican primary contenders are State Senator Chris Kapenga of Delafield, State Representative John Macco of Green Bay and 2018 U.S. Senate candidate Kevin Nicholson. But Kleefisch is clearly the heavy favorite among Republicans where she has a strong statewide name ID and has been traveling the state for the past year talking about her policy priorities.

The 2022 midterm elections are traditionally a challenge for the political party in the White House and Wisconsin’s race for Governor will be one to watch closely considering those headwinds will be strong.

The partisan primary election is on Tuesday, August 9, 2022 and the general election is on Tuesday, November 8, 2022.

Gov. Evers Signs Bill Freezing UI Tax Rates Through 2023

As employers continue to deal with challenges brought about by the COVID-19 pandemic, the Wisconsin Republican-controlled state legislature and Democratic governor have found some common ground this legislative session to help try and ease the burden on businesses. Governor Tony Evers signed legislation this past summer that prevents an increase in Unemployment Insurance (UI) contribution rates on employers through 2023.

This is a positive development for businesses all throughout Wisconsin.

Assembly Bill 406, now known as 2021 Wisconsin Act 59, passed both houses of the state legislature unanimously with no opposition. The newly enacted legislation:

• Prevents the increase of unemployment insurance

   tax rates on employers by ensuring the state remains

   in Schedule D for tax years 2022 and 2023; and

• Requires $60 million of General Purpose Revenues

   (GPR) to be transferred into the UI trust fund in each

   fiscal year of the 2021-23 biennium to offset any lost

   revenue

By way of a little background, under state law most private employers are required to make regular payments to the Unemployment Insurance (UI) program at a rate determined by state statute. State law requires two types of payments - contribution payments and solvency payments. Both types of payments are tied to one of four schedules (A-D) with Schedule A containing the highest rates for employers to pay and Schedule D containing the lowest rates. The balance of the Unemployment Reserve Fund on June 30th of each year determines which schedule will be in effect for the next calendar year. State law specifies that Schedule D is in effect for any calendar year whenever, as of the preceding June 30th, the fund has a cash balance of at least $1,200,000,000. Schedule D is in effect for calendar year 2021.

See new employer Schedule D Unemployment Insurance tax rates for 2021 at

https://bit.ly/Oct21GovAffairs.

By Misha Lee | IIAW Lobbyist

This article was featured in our April 2020 Wisconsin Independent Agent Magazine. Click here to see our full April 2020 magazine. 

NAIC Model Cybersecurity Bill Advances

NAIC model legislation creating cybersecurity standards for the insurance industry is quickly moving through the Wisconsin Legislature. Assembly Bill 819 was approved on a bi-partisan, voice vote in the Assembly and awaits final approval from the Senate in late March. We anticipate unanimous approval when the Senate convenes its final floor period. The legislation creates standards for insurance businesses that will help protect private consumer information from data breaches. Under the bill, businesses are required to conduct risk assessments, develop information security programs based on those assessments, and submit those plans to the Office of the Commissioner of Insurance (OCI).

During development of the model legislation last year, IIAW worked with OCI’s legal staff to advocate for an exemption for our members with fewer than 25 employees, or annual revenues under $5 million, or assets less than $10 million from having to comply with the provisions in the bill. The draft model had originally only exempted businesses with fewer than 10 employees. In addition, IIAW worked with the department to ensure that our member agencies would not be directly responsible for cybersecurity events that occur in a system maintained by an outside third-party service provider. The initial draft model had included this burdensome requirement.

So far, eight states have adopted a version of the NAIC model Law and more like Wisconsin are on the way.

Sweeping Data Privacy Legislation Fails 

With Industry Opposition

River Falls Republican State Representative Shannon Zimmerman unveiled late in the legislative session three bills he headlined, the Wisconsin Data Privacy Act (WDPA), that would fine companies up to $20 million or assess a portion of their annual revenue if found in violation of rules established in the legislation. IIAW opposed these bills at a public hearing held in February by the Assembly Science and Technology Committee. These sweeping bills, if enacted into law, would have unnecessarily created millions of dollars in added compliance costs for our industry and placed significant regulatory burdens on agents. Furthermore, the legislation overlooks the importance of how innovation, new technologies and the use of data within the insurance industry is benefiting consumers and enhancing marketplace competition. Property and Casualty insurance is a heavily state-regulated industry and it’s important that any proposals related to data security and privacy take into account existing laws and regulations administered by the Office of the Commissioner of Insurance (OCI). The Assembly has adjourned session without any action on these proposals. See Assembly Bill 870, Assembly Bill 871, and Assembly Bill 872.

Gov. Evers Signs Public Adjuster 

Consumer Protection Bill

Legislation brought forward this session by State Representative David Steffen (R-Green Bay) and State Senator Dan Feyen (R-Fond du Lac) will make registration of public adjusters part of Wisconsin law following a recent bill signing by Governor Tony Evers. The bi-partisan legislation, Assembly Bill 357, requires registration with the Office of the Commissioner of Insurance (OCI) for nonresident public adjusters not already registered with their home state. Those registered as nonresident public adjusters will be subject to examination, continuing education and fee requirements. Wisconsin resident public adjuster have the option of registering with OCI and are also subject to requirements in the bill related to contract formation, certain compensation arrangements and professional conduct.

Wisconsin becomes the 46th state to regulate public adjusters in some manner. Matt Banaszynski of the IIAW testified in support of the bill highlighting in his testimony the importance of protecting Wisconsin homeowners from increasing public adjuster scams that have been occurring in the state following natural disasters.

Gov. Evers Signs 45-Day Renewal With 

Altered Terms Notification Bill

Governor Evers also signed legislation supported by the Wisconsin Insurance Alliance (WIA) that shortens the time requirement on personal lines property and casualty coverages from the current 60-day requirement to 45 days on a renewal notification that includes less favorable terms or higher premiums. Twenty-eight states have notice requirements of 30 days or less. Eleven states use the 45-day requirement and five states have a 60-day notification requirement. The WIA had initially asked for a 30-day notice and the final bill as signed by the Governor reflects the good-faith negotiations between the independent insurance agent community and insurance carriers.