State attorneys have settled a lawsuit challenging Wisconsinâ??s policy of granting in-state law graduates licenses without passing the state bar exam. The agreement leaves Wisconsinâ??s so-called diploma privilege rules intact. The deal calls for the state to pay the woman who brought the lawsuit $7,500 and prohibits her and her husband from challenging any provisions governing admission to law practice in Wisconsin ever again. Under Wisconsin rules, law students who graduate from the University of Wisconsin-Madison and Marquette University donâ??t have to take the bar exam before they can go into business. Instead, the state Supreme Court sets the law school course requirements at both universities and students must pass them with certain average scores.