Key Takeaways
- The Wisconsin Office of the Commissioner of Insurance (OCI) regulates all insurance activities under Wisconsin Statutes Chapter 600-646
- The Commissioner of Insurance is appointed by the Governor and confirmed by the State Senate
- Nathan Houdek currently serves as Commissioner (appointed 2022, confirmed March 2023)
- Wisconsin uses a file-and-use rate filing system for most property and casualty insurance
- The OCI handles licensing, rate review, market conduct examinations, consumer complaints, and solvency regulation
Wisconsin Office of the Commissioner of Insurance (OCI)
The Wisconsin Office of the Commissioner of Insurance (OCI) is the state agency responsible for regulating the Property & Casualty insurance industry in Wisconsin. The OCI operates under Wisconsin Statutes Chapter 600-646 and reports directly to the Governor.
The Commissioner of Insurance
The Wisconsin Insurance Commissioner is:
- Appointed by the Governor
- Confirmed by the Wisconsin State Senate
- Serves at the pleasure of the Governor (no fixed term)
- Chief regulator of Wisconsin's insurance industry
- Authorized to adopt administrative rules, review rates, investigate violations, and discipline licensees
Current Commissioner (2026)
Nathan Houdek has served as Wisconsin Insurance Commissioner since 2022:
- Appointed by Governor Tony Evers in 2022
- Confirmed by Wisconsin State Senate in March 2023
- Former Deputy Commissioner and State Treasurer
- Focus on consumer protection and market stability
Exam Tip: The Commissioner is APPOINTED by the Governor and CONFIRMED by the State Senate. This differs from elected commissioners in states like Oklahoma or California.
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, revoke, and renew producer and company licenses |
| Rate Filing Review | Review P&C insurance rate filings under file-and-use system |
| Rule Making | Adopt administrative rules to implement Wisconsin insurance statutes |
| Market Conduct | Examine insurer business practices and compliance with state law |
| Enforcement | Investigate violations, hold hearings, and impose penalties |
| Consumer Protection | Handle consumer complaints and protect policyholders |
| Financial Oversight | Monitor insurer financial condition and solvency |
| Approve Policy Forms | Review and approve insurance policy forms and endorsements |
Rate Regulation System
Wisconsin uses a file-and-use system for most P&C insurance:
File-and-Use Rate System
Key Provisions:
- File-and-Use: Insurers file rates with OCI and may use them immediately without prior approval
- Post-Implementation Review: OCI reviews rates after they're implemented
- Commissioner Disapproval: OCI may disapprove rates if they violate state law
- Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory
- Actuarial Support: Rate filings must include actuarial justification and supporting data
File-and-Use Process
- Insurer Files Rates: Submit comprehensive rate filing with actuarial support to OCI
- Immediate Implementation: Insurer may implement rates immediately upon filing
- OCI Review Period: OCI reviews filing within 30-60 days for compliance
- Approval or Objection: Commissioner approves filing or notifies insurer of objections
- Insurer Response: If objected, insurer must modify rates or request hearing
- Final Determination: Commissioner makes final determination on rate adequacy
Exam Tip: Wisconsin's file-and-use system differs from prior approval (Massachusetts) and use-and-file systems. Know that insurers can implement rates IMMEDIATELY but OCI reviews them after implementation.
Rate Standards Under Wisconsin Law
Wisconsin Statutes require that all P&C insurance rates be:
| Standard | Definition | Example Violation |
|---|---|---|
| Not Excessive | Rates not unreasonably high for coverage provided | Charging 200% of actuarially justified premium |
| Not Inadequate | Rates sufficient to maintain insurer solvency | Setting rates below claims costs, threatening solvency |
| Not Unfairly Discriminatory | Similar risks charged similar rates | Charging different rates for identical risks without justification |
| Actuarially Sound | Based on credible data and sound actuarial principles | Using flawed data or unsupported assumptions |
Lines Subject to File-and-Use
| Insurance Line | Wisconsin Rate Regulation |
|---|---|
| Personal Auto | File-and-use |
| Homeowners | File-and-use |
| Dwelling Fire | File-and-use |
| Commercial Property | File-and-use |
| Commercial Auto | File-and-use |
| General Liability | File-and-use |
| Workers' Compensation | File-and-use (with separate rating bureau support) |
Wisconsin Insurance Law Structure
Wisconsin Statutes Chapter 600-646
Wisconsin insurance regulation is codified in Chapters 600-646 of Wisconsin Statutes:
Chapter 600 - Insurance Code in General
- Definitions and general provisions
- Commissioner authority and OCI organization
- General insurance company requirements
Chapter 601 - Administration and Procedure
- OCI powers and duties
- Administrative procedures
- Enforcement authority
- Examination powers
Chapter 628 - Rate Regulation
- Rate filing requirements
- File-and-use procedures
- Prohibited rating practices
- Rate standards (not excessive, inadequate, or unfairly discriminatory)
Chapter 631 - Trade Practices
- Unfair trade practices
- Unfair claims settlement practices
- Marketing and sales practices
- Prohibited activities
Chapter 632 - Insurance Contracts
- Policy provisions and requirements
- Cancellation and non-renewal rules
- Required disclosures
- Consumer protections
Chapter 633 - Insurance Coverages and Limitations
- Coverage requirements by line
- Mandatory coverages
- Coverage limitations and exclusions
Chapter 634 - Liability Insurance
- Auto liability insurance requirements
- General liability provisions
- Uninsured/underinsured motorist coverage
Chapter 635 - Fire Insurance
- Fire insurance policy provisions
- Loss settlement requirements
- Additional coverages
Chapter 645 - Producer Licensing
- Producer license requirements
- License application procedures
- Continuing education mandates
- Prohibited practices and penalties
Exam Tip: You don't need to memorize every chapter number, but understand that Wisconsin Statutes Chapters 600-646 comprehensively cover insurance regulation. Focus on Chapter 628 (rates), Chapter 631 (trade practices), Chapter 634 (liability), and Chapter 645 (producer licensing).
Wisconsin Administrative Code
The Wisconsin Administrative Code contains OCI regulations implementing state statutes:
Key Administrative Code Chapters
| Chapter | Topic | Key Provisions |
|---|---|---|
| Ins 6 | Property & Casualty Insurance | Policy forms, rates, underwriting practices |
| Ins 40 | Agents and Brokers | Licensing, continuing education, conduct |
| Ins 16 | Complaints and Investigations | Consumer complaint procedures |
| Ins 17 | Claims Practices | Unfair claims settlement standards |
OCI Organization and Functions
The Wisconsin OCI operates through several functional divisions:
OCI Divisions
| Division | Responsibilities |
|---|---|
| Licensing | Producer and company licensing, continuing education tracking, license renewals |
| Rate and Form Review | Review rate filings and policy forms for compliance |
| Consumer Affairs | Handle consumer complaints, inquiries, and mediation |
| Financial Regulation | Monitor insurer financial condition, solvency examinations |
| Market Regulation | Conduct market conduct examinations, compliance audits |
| Legal | Enforcement actions, hearings, legal opinions |
| Policy and Legislative Affairs | Policy development, legislative liaison |
Consumer Protection Functions
Consumer Affairs Division
The OCI provides comprehensive consumer protection through:
Consumer Hotline: (800) 236-8517 toll-free
- Available Monday-Friday, 8:00 AM - 4:30 PM Central Time
- Handles consumer inquiries and complaints
- Provides insurance information and guidance
Main OCI Phone: (608) 266-3585 (Madison office)
Email: ociinformation@wisconsin.gov
Online Services:
- Online complaint filing at oci.wi.gov
- Producer license verification
- Company authorization lookup
- Consumer guides and publications
Consumer Complaint Process
- Consumer Files Complaint: Online, phone, mail, or email to OCI
- OCI Initial Review: Consumer Affairs reviews complaint for jurisdiction and merit
- Complaint Assignment: Assigned to appropriate OCI examiner or investigator
- Insurer/Producer Contact: OCI sends complaint to respondent for written response
- Investigation: OCI investigates facts, reviews documents, may conduct interviews
- Resolution Efforts: OCI mediates between parties to resolve dispute
- Final Determination: OCI makes final determination, may order corrective action
- Enforcement Action: If warranted, OCI takes disciplinary or enforcement action
- Consumer Notification: Consumer notified of outcome and resolution
Common Consumer Complaints
| Complaint Type | Examples | OCI Action |
|---|---|---|
| Claims Handling | Delayed payments, denied claims, inadequate settlements | Investigate, order payment if justified |
| Policy Cancellations | Improper cancellation, inadequate notice | Review for compliance with Ch. 632 |
| Premium Disputes | Incorrect charges, unexpected increases | Review rate filing, refund if overcharged |
| Agent Misconduct | Misrepresentation, unauthorized charges | Investigate, disciplinary action |
| Coverage Disputes | Disagreement over coverage interpretation | Mediate, provide guidance on policy language |
| Unfair Practices | Discrimination, unfair underwriting | Investigate, enforce Ch. 631 provisions |
Consumer Protection Statutes
Wisconsin law provides strong consumer protections:
Policy Cancellation Protections (Chapter 632)
- 60 days advance notice required for non-renewal
- 10 days notice for non-payment cancellation
- Specific notice requirements and format
- Prohibited reasons for cancellation
Unfair Claims Practices (Chapter 631)
- Prompt claim investigation required
- Fair claim settlement standards
- Prohibition on unreasonable delays
- Duty to explain claim denials
Disclosure Requirements
- Material policy provisions must be disclosed
- Coverage limitations explained
- Premium factors disclosed
- Consumer right-to-know provisions
How is the Wisconsin Commissioner of Insurance selected?
What rate filing system does Wisconsin use for most Property & Casualty insurance?
Under Wisconsin's rate standards, insurance rates must NOT be: