The department estimates approximately 400 hours will be needed to review the updated model code and standards and to develop any needed rule changes. This time includes forming and meeting with an advisory council, drafting the rule changes and processing the changes through public hearings, legislative review, and adoption. The department will assign existing staff to perform the review and develop the rule changes, and no other resources will be needed.

The rules affect chs. Ins 6, 26 and 28, relating to creating a limited line of authority for travel insurance and affecting small business.

Wisconsin currently has 4 limited lines of insurance authority - credit , title , legal expense and a miscellaneous limited line insurance. These are created and authorized in s. Ins 6.50 (2) (b). Each limited line has requirements set by the Commissioner for testing, prelicensing education and continuing education. The limited line for travel insurance is one established in the NAIC models and most states have authorized it. Once Wisconsin authorizes this line, Wisconsin resident agents could more easily obtain this authority in other states and nonresident Wisconsin agents could obtain authority to sell this type of insurance in Wisconsin.

Section 628.04 (3), Stats.

Insurance agents, travel agencies and employees, insurance companies and any other entity that sells travel insurance.

None

200 hours and no other resources are necessary.

The rules affect ch. Tax 2, relating to apportionment of apportionable income of interstate financial institutions.

The objective of the proposed rule is to clarify the apportionment formula for entities that may not be included in the current definition of a “financial institution," but whose receipts are derived from the same types of activities as those performed by financial institutions.

Existing policies are as set forth in the rules. Since promulgating the rules, the Department is aware of certain entities that perform some of the functions of a financial institution but that may not be included in the definition of a “financial institution." The proposed rules will clarify the treatment of these entities. If the rules are not changed, they may provide inconsistent treatment of certain receipts when apportioning the income of multistate entities.

Section 71.80 (1) (c), Stats.

Credit card banks, entities that perform credit card activities, and corporations owned by financial institutions, which are engaged in business both in and outside of Wisconsin. Also affected will be entities that prepare Wisconsin franchise or income tax returns for these businesses.

There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

The department estimates it will take approximately 100 hours to develop this rule order.