632.32(6)(b)2.a.a. Any person who is a named insured or passenger in or on the insured vehicle, with respect to bodily injury, sickness or disease, including death resulting therefrom, to that person.
632.32(6)(b)2.b.
b. This subdivision, as it relates to passengers, does not apply to a policy of insurance for a motorcycle as defined in
s. 340.01 (32) or a moped as defined in
s. 340.01 (29m) if the motorcycle or moped is designed to carry only one person and does not have a seat for any passenger.
632.32(6)(b)3.
3. Any person while using the motor vehicle, solely for reasons of age, if the person is of an age authorized to drive a motor vehicle.
632.32(6)(b)4.
4. Any use of the motor vehicle for unlawful purposes, or for transportation of liquor in violation of law, or while the driver is under the influence of an intoxicant or a controlled substance or controlled substance analog under
ch. 961 or a combination thereof, under the influence of any other drug to a degree which renders him or her incapable of safely driving, or under the combined influence of an intoxicant and any other drug to a degree which renders him or her incapable of safely driving, or any use of the motor vehicle in a reckless manner. In this subdivision, "drug" has the meaning specified in
s. 450.01 (10).
632.32(6)(c)
(c) No policy may limit the time for giving notice of any accident or casualty covered by the policy to less than 20 days.
632.32 Annotation
Legislative Council Note, 1979: Sub. (1) retains the scope portion of former sub. (1), but the notice provision of former sub. (1) is transferred to new s. 632.26 and broadened to apply to all liability insurance.
632.32 Annotation
Sub. (2) (b) continues former sub. (2) (a); pars. (a) and (c) are new definitions in this place, though par. (a) tracks the language of s. 344.01 (2) (b). It would be possible to sharpen up the definition of motor vehicle, though that can only be done on the basis of a policy determination of what policies should be subject to this section. The exact delimitation of the affected class of policies is of less importance than if the section were mandating insurance or purported to change rules of law.
632.32 Annotation
Sub. (4) continues former sub. (3) and former s. 632.34 (5) with major editorial changes but without intended change of meaning except to add an unidentified hit-run vehicle as an uninsured vehicle. A precise definition of hit-and-run is not necessary for in the rare case where a question arises the court can draw the line.
632.32 Annotation
Sub. (5) continues the permitted provisions of former sub. (2) (b). Par. (d) continues a sentence of former s. 632.32 (2) (b), relocated in relation to other provisions to make its application clearer.
632.32 Annotation
Sub. (5) (e) deals with a latent ambiguity in former s. 204.34, carried forward into s. 632.34, which was picked up and noticed by the Wisconsin Supreme Court in Davison v. Wilson (1975),
71 Wis. 2d 630. The court suggested (at p. 641) that the section should be the subject of a clarifying amendment. The same ambiguity was dealt with by the court in Dahm v. Employers Mutual Liability Insurance Company of Wisconsin (1976),
74 Wis. 2d 123. The resolution of the ambiguity in par. (e) is believed to represent the probable intention of the legislature in the original enactment and, in any event, to represent the sound position in public policy.
632.32 Annotation
Sub. (6) deals with prohibited provisions. Par. (a) picks up the last sentence of former sub. (2) (b) which was a prohibited rather than a required provision. Par. (b) incorporates what was formerly s. 632.34 (3) in sub. (6) (b) 1., former subs. (5) and (6) in sub. (6) (b) 2., former sub. (2) (a) in sub. (6) (b) 3 and former sub. (2) (b) and (c) in sub. (6) (b) 4. Par. (c) continues the first sentence of former s. 632.34 (4), without change.
632.32 Annotation
It escaped the attention of everyone involved in the revision, and not least the principal drafters, that former s. 632.34 (1) narrowed the coverage of old s. 204.34. That has led, in this amendment, to combining most of ss. 632.32 and 632.34 in a single section, numbered 632.32. All parts of s. 632.34 which need to be preserved are transferred to s. 632.32, with the minor exception contained in new s. 632.34. [Bill 146-S]
632.32 Annotation
"Family exclusion clause" valid in state of policy issuance will be given effect in Wisconsin. Knight v. Heritage Mut. Ins. Co. 71 W (2d) 821, 239 NW (2d) 348.
632.32 Annotation
See note to 344.33, citing Gross v. Joecks, 72 W (2d) 583, 241 NW (2d) 727.
632.32 Annotation
Fellow employe exclusion clause is only valid where tort-feasor and injured party are employes of the named insured and employer is required to provide worker's compensation coverage. Dahm v. Employers Mut. Liability Ins. Co. 74 W (2d) 123, 246 NW (2d) 131.
632.32 Annotation
Spouse who was not party to contract, reasonably believing that coverage existed after insured spouse's death, must be given grace period before having to comply with technical, not commonly known provisions of policy. Handal v. American Farmers Mut. Cas. Co. 79 W (2d) 67, 255 NW (2d) 903.
632.32 Annotation
Implied permission of named insured discussed. American Family Mut. Ins. Co. v. Osusky, 90 W (2d) 142, 279 NW (2d) 719 (Ct. App. 1979).
632.32 Annotation
Injury to police officer who was stabbed while unloading beer cans from automobile did not arise out of use of automobile. Tomlin v. State Farm Mut. Auto. Ins. Co. 95 W (2d) 215, 290 NW (2d) 285 (1980).
632.32 Annotation
Sub. (4) (a) 2. b. does not mandate coverage for accident involving insured's vehicle and unidentified motor vehicle when there was no physical contact between the vehicles. Hayne v. Progressive N. Ins. Co. 115 W (2d) 68, 339 NW (2d) 588 (1983).
632.32 Annotation
Third parties may recover against insurer even though insured's fraudulent application voided policy under 631.11. Rauch v. American Fam. Ins. Co. 115 W (2d) 257, 340 NW (2d) 478 (1983).
632.32 Annotation
See note to 814.025, citing Radlein v. Industrial Fire & Cas. Ins. Co. 117 W (2d) 605, 345 NW (2d) 874 (1984).
632.32 Annotation
"Drive other car" exclusion which prohibited stacking of uninsured motorist benefits against same insurer was voided by 631.43. Welch v. State Farm Mut. Auto. Ins. Co. 122 W (2d) 172, 361 NW (2d) 680 (1985).
632.32 Annotation
Motor vehicle operated by insured driver was not "uninsured" under (4). Hemerley v. American Fam. Mut. Ins. Co. 127 W (2d) 304, 379 NW (2d) 860 (Ct. App. 1985).
632.32 Annotation
Reducing clause in uninsured motorist provision was voided by (4) (a). Nicholson v. Home Ins. Cos. 137 W (2d) 581, 405 NW (2d) 327 (1987).
632.32 Annotation
Because uninsured motorist coverage is "personal and portable", claimant was covered by policy on vehicle not involved in the accident. Parks v. Waffle, 138 W (2d) 70, 405 NW (2d) 690 (Ct. App. 1987).
632.32 Annotation
Loss of consortium isn't separate bodily injury under policy's "each person" limitation. Landsinger v. American Family, 142 W (2d) 138, 417 NW (2d) 899 (Ct. App. 1987).
632.32 Annotation
Insurer could not avoid uninsured motorist coverage based on policy provision excluding resident relatives who own their own car. Hulsey v. American Family Mut. Ins. 142 W (2d) 639, 419 NW (2d) 288 (Ct. App. 1987).
632.32 Annotation
Reducing clause and "regular use" exclusionary clause violated (4) (a). Niemann v. Badger Mut. Ins. Co. 143 W (2d) 73, 420 NW (2d) 378 (Ct. App. 1988).
632.32 Annotation
Auto insurer who pays under uninsured motorist provision is not a tortfeasor or tortfeasor's insurer against whom injured insured's medical insurer may assert subrogation claim. Employers Health Ins. v. General Cas. 161 W (2d) 937, 469 NW (2d) 172 (1991).
632.32 Annotation
Policy may expand but not reduce uninsured motorist coverage; policy not statute determines coverage beyond statutory requirements. Fletcher v. Aetna Casualty & Surety Co. 165 W (2d) 350, 477 NW (2d) 90 (Ct. App. 1991).
632.32 Annotation
Policy cannot limit uninsured motorist coverage to occupants of vehicles. St. Paul Mercury Ins. Co. v. Zastrow, 166 W (2d) 423, 480 NW (2d) 8 (1992).
632.32 Annotation
Where the insurer of a vehicle becomes insolvent, the vehicle is uninsured under sub. (4) (a) 2. even though an insurance guaranty association assumes the liability of the insolvent insurer. Fritsche v. Ford Motor Credit Co. 171 W (2d) 280, 491 NW (2d) 119 (Ct. App. 1992).
632.32 Annotation
To take advantage of sub. (5) (c), a policy must include language which either says permissive users are restricted to the minimum statutory limits of liability or that users may not avail themselves of the policy unless there is no other valid collectible insurance. Carrell v. Wolken, 173 W (2d) 426, 496 NW (2d) 651 (Ct. App. 1992).
632.32 Annotation
A reducing clause unavailable to a tortfeasor which seeks to reduce uninsured motorist benefits is invalid; reduction for worker's compensation is not allowed. United Fire & Cas. Co. v. Kleppe, 174 W (2d) 637, 498 NW (2d) 226 (1993).
632.32 Annotation
Adult members of a named insured's household must be deemed to be capable of giving themselves permission to drive under sub. (5). When the named insured is a corporation and the insurer knows the vehicle is owned by a corporation employee, the owner shall be treated as the named insured under sub. (5). Home Ins. Co. v. Phillips, 175 W (2d) 104, 499 NW (2d) 193 (Ct. App. 1993).
632.32 Annotation
Where premium has been paid for underinsured motorist coverage under which no benefits may ever be paid due to the application of policy definitions, the coverage is illusory and against public policy. Hoglund v. Secura Insurance, 176 W (2d) 265, NW (2d) (Ct. App. 1993).
632.32 Annotation
Despite policy restrictions to the contrary, under sub. (3) separate coverage must be provided to both a named insured and an additional insured where both are actively negligent. Iaquinta v. Allstate Ins. Co. 180 W (2d) 661, 510 NW (2d) 715 (Ct. App. 1993).
632.32 Annotation
Sub. (4) (a) does not require the named insured in commercial fleet policies, where the named insured is a corporation or government entity, to be interpreted as including all the entity's employes. Meyer v. City of Amery, 185 W (2d) 537, 518 NW (2d) 296 (Ct. App. 1994).
632.32 Annotation
The uninsured motorist coverage requirements of s. 632.32 are inapplicable to self-insured entities under s. 344.16. Classified Insurance Co. v. Budget Rent-A-Car Inc. 186 W (2d) 476, 521 NW (2d) 478 (Ct. App. 1994).
632.32 Annotation
Sub. (3) (a) does not apply to uninsured motorist coverage so that a permissive user is entitled to increased coverage limits purchased for specifically named persons not including the user. American Hardware Mut. Ins. Co. v. Steberger, 187 W (2d) 681, 523 NW (2d) 187 (Ct. App. 1994).
632.32 Annotation
A medical insurer with subrogation rights may be an injured person under s. 632.32 (4). An auto insurance policy providing that uninsured motorist coverage does not apply to persons claiming by right of subrogation, impermissibly reduces coverage which the statute mandates for injured persons. WEA Insurance Corp. v. Freiheit, 190 W (2d) 111, 527 NW (2d) 363 (Ct. App. 1994).
632.32 Annotation
No policy issued pursuant to the ch. 344 financial responsibility statutes may exclude coverage for persons related by blood or marriage to the operator as mandated by s. 632.32 (6) (b) 1. Bindrim v. Colonial Ins. Co. 190 W (2d) 525, 527 NW (2d) 321 (1995).
632.32 Annotation
This section does not prevent the exclusion of coverage of vehicles used solely on the insured's premises. Rea v. Transportation Ins. Co. 191 W (2d) 271, 528 NW (2d) 79 (Ct. App. 1995).
632.32 Annotation
This section does not distinguish between an owner and a named insurer. A policy which excludes coverage to the owner of a vehicle covered by the policy violates this section. Kettner v. Wausau Insurance Cos. 191 W (2d) 724, 530 NW (2d) 399 (Ct. App. 1995).
632.32 Annotation
When the insurer defines uninsurance as including underinsurance, all case law concerning an insurer's duties and limitations in an uninsurance situation apply. Kuhn v. Allstate Ins. Co. 193 W (2d) 50, 532 NW (2d) 124 (1995).
632.32 Annotation
An uninsured motorist policy which restricted coverage to cases where the insured is "hit" or "struck" was void. A bite by a dog tied in a parked vehicle was the result of use of the vehicle and subject to coverage. Trampf v. Prudential Property & Casualty Co. 199 W (2d) 380, 544 NW (2d) 596 (Ct. App. 1996).
632.32 Annotation
Uninsured motorist coverage: Wisconsin courts open up additional avenues of recovery. Dunphy. WBB Nov. 1982.
632.34
632.34
Defense of noncooperation. If a policy of automobile liability insurance provides a defense to the insurer for lack of cooperation on the part of the insured, the defense is not effective against a 3rd person making a claim against the insurer unless there was collusion between the 3rd person and the insured or unless the claimant was a passenger in or on the insured vehicle. If the defense is not effective against the claimant, after payment the insurer is subrogated to the injured person's claim against the insured to the extent of the payment and is entitled to reimbursement by the insured.
632.34 History
History: 1975 c. 375,
421;
1979 c. 102,
104,
177.
632.34 Annotation
Legislative Council Note, 1979: This provision is continued from former s. 632.34 (8). It is changed from a required provision of the policy to a rule of law. It is not the kind of rule that needs to be put in the policy to inform the policyholder. Indeed, the policyholder should receive no encouragement to fail to cooperate. This is a relaxation of present law. [Bill 146-S]
632.34 Annotation
Prejudice is not a component of the defense of noncooperation. Schaefer v. Northern Assurance Co. 182 W (2d) 148, 513 NW (2d) 16 (Ct. App. 1994).
632.35
632.35
Prohibited rejection, cancellation and nonrenewal. No insurer may cancel or refuse to issue or renew an automobile insurance policy wholly or partially because of one or more of the following characteristics of any person: age, sex, residence, race, color, creed, religion, national origin, ancestry, marital status or occupation.
632.35 History
History: 1975 c. 375;
1979 c. 102.
632.36
632.36
Accident in the course of business or employment. 632.36(1)(1)
Rate and other terms. An insurer may increase or charge a higher rate for a motor vehicle liability insurance policy issued or renewed on or after April 16, 1982, on the basis of an accident which occurs while the insured is operating a motor vehicle in the course of the insured's business or employment, only if the policy covers the insured for liability arising in the course of the insured's business or employment. An insurer may issue or renew a motor vehicle liability insurance policy on or after November 1, 1989, on terms that are less favorable to the insured than would otherwise be offered, including but not limited to the rate, because of an accident which occurs while the insured is operating a motor vehicle in the course of the insured's business or employment, only if the policy covers the insured for liability arising in the course of the insured's business or employment.
632.36(2)
(2) Cancellation or nonrenewal. An insurer may cancel a motor vehicle liability insurance policy that is issued or renewed on or after November 1, 1989, or refuse to renew a motor vehicle liability insurance policy on or after November 1, 1989, on the basis of an accident which occurs while the insured is operating a motor vehicle in the course of the insured's business or employment, only if the policy covers the insured for liability arising in the course of the insured's business or employment.
632.36 History
History: 1981 c. 178;
1989 a. 31.
632.365
632.365
Use of emission inspection data in setting rates. An insurer may not use odometer reading data collected in the course of an inspection under
s. 110.20 (6) or
(7) as a factor in setting rates or premiums for a motor vehicle liability insurance policy or as a factor in altering rates or premiums during the term, or at renewal, of such a policy. However, an insurer may use such data as a basis for investigation into the number of miles that the motor vehicle is normally driven.
632.365 History
History: 1991 a. 279;
1993 a. 213.
632.37
632.37
Motor vehicle glass repair practices; restriction on specifying vendor. An insurer that issues a motor vehicle insurance policy covering the repair or replacement of motor vehicle glass may not require, as a condition of that coverage, that an insured, or a 3rd party, making a claim under the policy for the repair or replacement of motor vehicle glass obtain services or parts from a particular vendor, or in a particular location, specified by the insurer.
632.37 History
History: 1991 a. 269.
632.38
632.38
Nonoriginal manufacturer replacement parts. 632.38(1)(a)
(a) "Insured" means the person who owns the motor vehicle that is subject to repair or the person seeking the repair on behalf of the owner.
632.38(1)(b)
(b) "Insurer's representative" means a person, excluding the person repairing the motor vehicle, who has agreed in writing to represent an insurer with respect to a claim.
632.38(1)(c)
(c) "Motor vehicle" means any motor-driven vehicle required to be registered under
ch. 341 or exempt from registration under
s. 341.05 (2), including a demonstrator or executive vehicle not titled or titled by a manufacturer or a motor vehicle dealer. "Motor vehicle" does not mean a moped, semitrailer or trailer designed for use in combination with a truck or truck tractor.
632.38(1)(d)
(d) "Nonoriginal manufacturer replacement part" means a replacement part that is not made by or for the manufacturer of an insured's motor vehicle.
632.38(1)(e)
(e) "Replacement part" means a replacement for any of the nonmechanical sheet metal or plastic parts that generally constitute the exterior of a motor vehicle, including inner and outer panels.
632.38(2)
(2) Notice of intended use. An insurer or the insurer's representative may not require directly or indirectly the use of a nonoriginal manufacturer replacement part in the repair of an insured's motor vehicle, unless the insurer or the insurer's representative provides to the insured the notice described in this subsection in the manner required in
sub. (3) or
(4). The notice shall be in writing and shall include all of the following information:
632.38(2)(a)
(a) A clear identification of each nonoriginal manufacturer replacement part that is intended for use in the repair of the insured's motor vehicle.
632.38(2)(b)
(b) The following statement in not smaller than 10-point type: "This estimate has been prepared based on the use of one or more replacement parts supplied by a source other than the manufacturer of your motor vehicle. Warranties applicable to these replacement parts are provided by the manufacturer or distributor of the replacement parts rather than by the manufacturer of your motor vehicle."
632.38(3)(a)(a) The notice described in
sub. (2) shall appear on or be attached to the estimate of the cost of repairing the insured's motor vehicle if the estimate is based on the use of one or more nonoriginal manufacturer replacement parts and is prepared by the insurer or the insurer's representative. The insurer or the insurer's representative shall deliver the estimate and notice to the insured before the motor vehicle is repaired.
632.38(3)(b)
(b) If the insurer or the insurer's representative directs the insured to obtain one or more estimates of the cost of repairing the insured's motor vehicle and the estimate approved by the insurer or the insurer's representative clearly identifies one or more nonoriginal manufacturer replacement parts to be used in the repair, the insurer or the insurer's representative shall assure delivery of the notice described in
sub. (2) to the insured before the motor vehicle is repaired.
632.38(3)(c)
(c) The insurer or the insurer's representative may not require the person repairing the motor vehicle to give the notice described in
sub. (2).
632.38(3)(d)
(d) Notwithstanding
par. (b), if an insured authorizes repairs to begin prior to the approval by the insurer or the insurer's representative of an estimate that clearly identifies one or more nonoriginal manufacturer replacement parts to be used in the repair, the insurer or the insurer's representative shall send the written notice described in
sub. (2) by mail to the insured's last-known address no later than 3 working days after the insurer or the insurer's representative receives the estimate.
632.38(4)
(4) Notice by telephone. Notwithstanding
sub. (3), notice of the intention to use nonoriginal manufacturer replacement parts in the repair of the insured's motor vehicle may be given by the insurer or the insurer's representative by telephone. If such notice is given, the insurer or insurer's representative shall send the written notice described in
sub. (2) by mail to the insured's last-known address no later than 3 working days after the telephone contact.
632.38 History
History: 1991 a. 176.
LIFE INSURANCE AND ANNUITIES
632.41
632.41
Prohibited provisions in life insurance. 632.41(1)(1)
Assessable policies. No insurer may issue assessable life insurance policies under which assessments or calls may be made upon policyholders or others.
632.41(2)(a)(a) Except as provided in
par. (b), no contract in which the insurer agrees to pay for any of the incidents of burial or other disposition of the body of a deceased may provide that the benefits are payable to a funeral director or any other person doing business related to burials.
632.41(2)(b)1.1. A life insurance policy may provide for the assignment of the proceeds of the policy to a funeral director or operator of a funeral establishment if the insurance intermediary who sells or solicits the sale of the policy is not an agent of the funeral director or operator of the funeral establishment or if the assignment of proceeds is contingent on the provision of funeral merchandise or funeral services as provided for in a burial agreement that satisfies the requirements of
s. 445.125 (3m) and rules promulgated by the funeral directors examining board under
s. 445.125 (3m) (j) 1. b.
632.41(2)(b)2.
2. Subject to
subd. 3., the commissioner shall by rule establish minimum standards for benefits, claims payments, marketing practices, compensation arrangements and reporting practices for life insurance policies sold under
subd. 1.
632.41(2)(b)3.
3. A life insurance policy sold under
subd. 1. shall permit the policyholder to designate a different beneficiary, after written notice to the current beneficiary, and a different funeral director or operator of a funeral establishment that is to receive the assignment of proceeds, after written notice to the current funeral director or operator of the funeral establishment.
