Insurance premium finance companies are
licensed under Wis. Stat. s. 138.12. As their name implies, these
companies finance insurance premiums. A license is required to originate
consumer and/or commercial transactions. Exemptions from licensing are
found in Wis. Stat. s. 138.12(2).
Wisconsin Consumer Act (WCA) Coverage Changes
The WCA (Chapters 421-427 of the Wisconsin Statutes) is the law that governs consumer credit transactions and the collection of consumer debt in Wisconsin. Currently, consumer transactions exceeding $25,000 are excluded from coverage under the WCA.
2025 Wisconsin Act 105 includes an amendment to Wis. Stat. s. 421.202(6) that will broaden the coverage of the WCA to include transactions up to $50,000. This amendment goes into effect on January 1, 2027. Licensees should take steps to ensure their policies, procedures, and loan management systems are updated accordingly.
Frequent Links
- Applications - Licenses must be applied for through the Nationwide Multistate Licensing System & Registry (NMLS). Links to NMLS resources are found below. Questions pertaining to Wisconsin licensing requirements should be directed to DFI_LFS@dfi.wisconsin.gov. Questions pertaining to NMLS account creation and the completion of NMLS forms can be directed to the NMLS Resource Center at 1-855-665-7123 (Monday - Friday, 8:00 AM to 8:00 PM Central Time).
- License Amendment Instructions
- Refer to the applicable Wisconsin NMLS Amendment Checklist for
instructions on how notify the Division of Banking about changes to:
- Direct Owners, Indirect Owners, Affiliates or Subsidiaries
- Executive Officers or other Control Persons
- Addresses
- Legal Names or Trade Names
- Legal Status
- Disclosure Question and Answers
Helpful Information
- Financial Statement Requirements
- The licensed legal entity's fiscal year-end financial statements and a completed
Supplemental Financial Statement Information form, must be uploaded to NMLS within 90 days after
the completion of each fiscal year. - Financial
statements must include a balance sheet & income statement and be
prepared in accordance with generally accepted accounting principles.
- Licensees must maintain tangible net worth of at least $10,000 and positive working capital.
- When
evaluating a licensee's tangible net worth and net working capital, the
division discounts intangibles; receivables from officers,
stockholders, and other related parties; employee advances; receivables
over 120 days past due; and any other assets of questionable value.
- Cybersecurity 101 - a
resource developed by the Conference of State Bank Supervisors intended
to be an easily-digestible, non-technical reference guide to help
executives develop a comprehensive, responsive cybersecurity program in
line with best practices.
- Ransomware Self-Assessment Tool
– a resource updated October 15, 2024, and developed by the Conference of State Bank Supervisors in conjunction with state bank examiners, the Bankers Electronic Crimes Taskforce, and the United States Secret Service which contains important controls that all types of companies should use to assess their efforts to mitigate risks associated with ransomware and to identify opportunities for increasing security.
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