Wisconsin Administrative Code
Office of the Commissioner of Insurance
Chapter Ins 3 - Casualty Insurance
Section Ins 3.34 - Coverage of dependent

Universal Citation: WI Admin Code § Ins 3.34

Current through February 24, 2025

(1) PURPOSE. This section implements s. 632.885, Stats.

(2) APPLICABILITY.

(a) This section applies to disability insurance policies as defined at s. 632.895(1) (a), Stats., that are issued or renewed on or after January 1, 2010, including individual health and group health benefit plans. It applies to limited scope plans including vision and dental plans but does not include hospital indemnity, income continuation, accident-only benefits, long-term care and Medigap policies. This section also applies to self-insured health plans as defined at s. 632.745(24), Stats.

(b) For a disability insurance policy covering employees who are affected by a collective bargaining agreement this coverage under this section first applies as follows:
1. If the collective bargaining agreement contains provisions consistent with this law or that are silent on dependent eligibility, coverage under this section first applies the earliest of any of the following; the date the disability insurance policy is issued or renewed on or after January 1, 2010, or the date the self-insured health plan is established, modified, extended or renewed on or after January 1, 2010.

2. If the collective bargaining agreement contains provisions inconsistent with this law, the coverage under this section first applies on the date the health policy is first issued or renewed or a self-insured health plan is first established, modified, extended, or renewed on or after the earlier of the date the collectively bargained agreement expires, or the date the collectively bargained agreement it is modified, extended or renewed.

(3) DEFINITIONS. In this section and for purposes of applying s. 632.885, Stats.:

(a) "Adult child" means a child of the applicant, enrollee or insured who meets the eligibility requirements of s. 632.885(2), Stats., as applicable.

(b) "Premium contribution" means the amount the adult child is required to pay for coverage under the adult child's employer-sponsored group health benefit plan or self-insured health plan.

(c) "Premium amount" means the additional amount the applicant or insured is required to pay for inclusion of the adult child under the applicant's or insured's health insurance policy or self-insured plan.

(4) PREMIUM DETERMINATION. To determine whether an adult child meets the eligibility standard in s. 632.885(2) (a) 3, Stats., the insurer or self-insured health plan must use only the following:

Note: 2011 Wis. Act 32 repealed s. 632.885(2) (a) 1 to 3., Stats. See s. 632.885(2) (a), Stats.

(a) The amount of the adult child's premium contribution.

(b) The amount of the applicant's or insured's premium amount.

(5) OFFER OF COVERAGE.

(a) On or after January 1, 2010, an insurer and self-insured health plan shall offer coverage to an adult child of an applicant or insured as a new entrant when the applicant or insured requests enrollment of the adult child no later than 30 days after the date the adult child first becomes eligible according to this section. It is solely the applicant's or insured's decision whether or not to add eligible adult children to the plan to the extent permitted by law.

(b) Insurers and self-insured health plans may not limit or otherwise restrict the offer of coverage to an eligible adult child by requiring any of the following:
1. The eligible adult child to have been previously covered as a dependent.

2. The eligible adult child to reside in this state.

3. The eligible adult child to demonstrate that he or she had previous creditable coverage.

4. The insured or applicant to have requested coverage for an eligible adult child the first time the child was eligible for coverage.

(c) Insurers offering individual disability insurance may individually rate the eligible adult child and apply preexisting condition waiting periods consistent with s. 632.76(2) (ac) 2, Stats., and may apply elimination riders to the eligible adult child, but may not do either of the following:
1. Deny coverage to an eligible adult child when the applicant or insured requests coverage.

2. Otherwise limit coverage if such limitation results in coverage that is illusory.

(d) Insurers offering group disability insurance policies and self-insured health plans shall comply with all of the following:
1. May not deny coverage of an eligible adult child when coverage is requested by the applicant or insured.

2. Shall apply portability rights to an eligible adult child so long as the adult child has not had a break in creditable coverage longer than 62 days.

3. Shall comply with s. 632.746, Stats., as applicable.

4. May request documentation of the adult child's creditable coverage for determining portability. The pre-existing condition waiting period applicable to the eligible adult child shall be applied to the adult child in the same manner as applied to any other applicant or eligible dependent.

(6) ELIGIBLE ADULT CHILD.

(a) For purposes of this section and implementation of s. 632.885(2), Stats., an adult child is eligible for coverage as a dependent if either of the following is met:
1. For an adult child who has not been called to federal active duty in the national guard or in a reserve component of the U.S. armed forces, either of the following:
a. An adult child who meets s. 632.885(2) (a) 1, 2., and 3., Stats.

Note: 2011 Wis. Act 32 repealed s. 632.885(2) (a) 1 to 3., Stats. See s. 632.885(2) (a), Stats.

b. An adult child who meets s. 632.885(2) (a) 1 and 2., Stats., and who is not eligible for his or her employer sponsored coverage or whose employer does not offer health insurance to its employees is an eligible adult child.

Note: 2011 Wis. Act 32 repealed s. 632.885(2) (a) 1 to 3., Stats. See s. 632.885(2) (a), Stats.

2. For an adult child who has been called to federal active duty in the national guard or in a reserve component of the U.S. armed forces and who meet s. 632.885(2) (b) 1, 3., and 4., Stats., all of the following:
a. The adult child must apply to an institution of higher education as a full-time student within 12 months from the date the adult child has fulfilled his or her active duty obligation.

b. When an adult child is called to active duty more than once within a four-year period of time, the insurer and self-insured health plan must use the adult child's age when first called to active duty for determining eligibility under this section.

Disclaimer: These regulations may not be the most recent version. Wisconsin may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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