Regulation of contract forms will be more effective and litigation will be substantially reduced if there is increased standardization of certain clauses; and
Reasonable minimum standards of insurance protection are needed for policies to serve a useful purpose.
(2) Grounds for disapproval.
A fire, inland marine or other property insurance form may be considered misleading, deceptive or obscure within the meaning of s. 631.20 (2)
, Stats., if it does not clearly state the perils covered, the limitations, and the conditions, or if it contains provisions contrary to the law, or if it does not include clauses covering the following provisions where appropriate:
Effect of other insurance on the coverage provided;
Conditions suspending, restricting or voiding the coverage provided;
(3) Authorized clauses.
The following clauses, or any of them, shall be considered authorized clauses pursuant to s. 631.23
, Stats. Appropriate liberalization of the prescribed language shall also be permitted.
IN CONSIDERATION OF THE PROVISIONS AND
STIPULATIONS HEREIN OR ADDED HERETO
and of the premium above specified this Company, for the term of
from at noon (12:01 a.m.) [choose one] Standard Time to at location of property involved, to an amount not exceeding the amount(s) above specified does insure
and legal representatives, to the extent of the actual cash value of the property at the time of loss, but not exceeding the amount which it would cost to repair or replace the property with material of like kind and quality within a reasonable time after such loss, without compensation for loss resulting from interruption of business or manufacture, nor in any event for more than the interest of the insured against all DIRECT LOSS BY FIRE, LIGHTNING AND BY REMOVAL FROM PREMISES ENDANGERED BY THE PERILS INSURED AGAINST IN THIS POLICY, EXCEPT AS HEREINAFTER PROVIDED, to the property described herein while located or contained as described in this policy, or pro rata for 5 days at each proper place to which any of the property shall necessarily be removed for preservation from the perils insured against in this policy, but not elsewhere. Assignment of this policy shall not be valid except with the written consent of this Company. This policy is made and accepted subject to the foregoing provisions and stipulations and those hereinafter stated, which are hereby made a part of this policy, together with such other provisions, stipulations and agreements as may be added hereto, as provided in this policy.
(b) Uninsurable and excepted property.
This policy shall not cover accounts, bills, currency, deeds, evidences of debt, money or securities; nor, unless specifically named hereon in writing, bullion or manuscripts.
(c) Perils not included.
This company shall not be liable for loss by fire or other perils insured against in this policy caused, directly or indirectly, by:
enemy attack by armed forces, including action taken by military, naval or air forces in resisting an actual or an immediately impending enemy attack; 2. invasion; 3. insurrection; 4. rebellion; 5. revolution; 6. civil war; 7. usurped power; 8. order of any civil authority except acts of destruction at the time of and for the purpose of preventing the spread of fire, provided that such fire did not originate from any of the perils excluded by this policy; 9. neglect of the insured to use all reasonable means to save and preserve the property at and after a loss, or when the property is endangered by fire in neighboring premises; 10. nor shall this company be liable for loss by theft.
(d) Other insurance.
Other insurance may be prohibited or the amount of insurance may be limited by endorsement attached hereto.
(e) Conditions suspending or restricting insurance.
Unless otherwise provided in writing added hereto this Company shall not be liable for loss occurring:
While the hazard is increased by any means within the control or knowledge of the insured; or
While a described building, whether intended for occupancy by owner or tenant, is vacant or unoccupied beyond a period of sixty consecutive days; or
As a result of explosion or riot, unless fire ensue, and in that event for loss by fire only.
(f) Other perils or subjects.
Any other peril to be insured against or subject of insurance to be covered in this policy shall be by endorsement in writing hereon or added hereto.
(g) Added provisions.
The extent of the application of insurance under this policy and of the contribution to be made by this Company in case of loss, and any other provision or agreement not inconsistent with the provisions of this policy, may be provided for in writing added hereto, but no provision may be waived except such as by the terms of this policy is subject to change.
(h) Waiver provisions.
No permission affecting this insurance shall exist, or waiver of any provision be valid, unless granted herein or expressed in writing added hereto. No provision, stipulation or forfeiture shall be held to be waived by any requirement or proceeding on the part of this Company relating to appraisal or to any examination provided for herein.
(i) Mortgagee interests and obligations.
If loss hereunder is made payable, in whole or in part, to a designated mortgagee not named herein as the insured, such interest in this policy may be cancelled by giving to such mortgagee a ten days' written notice of cancellation. If the insured fails to render proof of loss such mortgagee, upon notice, shall render proof of loss in the form herein specified within sixty (60) days thereafter and shall be subject to the provisions hereof relating to appraisal and time of payment and of bringing suit. If this Company shall claim that no liability existed as to the mortgagor or owner, it shall, to the extent of payment of loss to the mortgagee, be subrogated to all mortgagee's rights of recovery, but without impairing mortgagee's right to sue; or it may pay off the mortgage debt and require an assignment thereof and of the mortgage. Other provisions relating to the interests and obligations of such mortgagee may be added hereto by agreement in writing.
(j) Pro rata liability.
This company shall not be liable for a greater portion of any loss than the amount hereby insured shall bear to the whole insurance covering the property against the peril involved, whether collectible or not.
(k) Requirements in case loss occurs.
The insured shall give written notice as soon as reasonably possible to this Company of any loss, protect the property from further damage, forthwith separate the damaged and undamaged personal property, put it in the best possible order, furnish a complete inventory of the destroyed, damaged and undamaged property, showing in detail quantities, costs, actual cash value and amount of loss claimed; and within sixty days after the loss, unless such time is extended in writing by this Company, the insured shall render to this Company a proof of loss signed and sworn to by the insured, stating the knowledge and belief of the insured as to the following: the time and origin of the loss, the interest of the insured and of all others in the property, the actual cash value of each item thereof and the amount of loss thereto, all encumbrances thereon, all other contracts of insurance, whether valid or not, covering any of said property, any changes in the title, use, occupation, location, possession or exposures of said property since the issuing of this property, by whom and for what purpose any building herein described and the several parts thereof were occupied at the time of loss and whether or not it then stood on leased ground, and shall furnish a copy of all the descriptions and schedules in all policies and, if required, verified plans and specifications of any building, fixtures or machinery destroyed or damaged. The insured, as often as may be reasonably required, shall exhibit to any person designated by this Company all that remains of any property herein described, and submit to examinations under oath by any person named by this Company, and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by this Company or its representative, and shall permit extracts and copies thereof to be made.
In case the insured and this Company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand. The appraisers shall first select a competent and disinterested umpire; and failing for fifteen days to agree upon such umpire, then, on request of the insured or this Company, such umpire shall be selected by a judge of a court of record in the state in which the property covered is located. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this Company shall determine the amount of actual cash value and loss. Each appraiser shall be paid by the party selecting him or her and the expenses of appraisal and umpire shall be paid by the parties equally.
(m) Company's options.
It shall be optional with this Company to take all, or any part, of the property at the agreed or appraised value, and also to repair, rebuild or replace the property destroyed or damaged with other of like kind and quality within a reasonable time, on giving notice of its intention so to do within thirty days after the receipt of the proof of loss herein required.
There can be no abandonment to this Company of any property.
(o) When loss payable.
The amount of loss for which this Company may be liable shall be payable sixty days after proof of loss, as herein provided, is received by this Company and ascertainment of the loss is made either by agreement between the insured and this Company expressed in writing or by the filing with this Company of an award as herein provided.
No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, and unless commenced within 12 months next after inception of the loss.
This Company may require from the insured an assignment of all right of recovery against any party for loss to the extent that payment therefor is made by this Company.
Ins 6.76 History
Cr. Register, November, 1977, No. 263
, eff. 12-1-77; am. (3) (a), Register, November, 1978, No. 275
, eff. 12-1-78.
Exemption from mid-term cancellation requirements and from required uninsured motorist, underinsured motorist and medical payment coverages. Ins 6.77(2)
This section applies to all insurers authorized to write umbrella or excess liability insurance policies in Wisconsin, to all insurers authorized to write commercial liability policies in Wisconsin and to all insurers authorized to write aircraft insurance policies in Wisconsin.
"Application form" means a policy form that is designated an application by the insurer and that is filed with the office of the commissioner of insurance under s. 631.20
"Commercial liability policy" means any form of liability insurance policy, including a commercial or business package policy or a policy written on farm and agriculture operations, that is intended principally to provide primary coverage for the insured's general liability arising out of its business or other commercial activities, and which includes coverage for the insured's liability arising out of the ownership, maintenance or use of motor vehicles as only one component of the policy or as coverage that is only incidental to the principal purpose of the policy. For purposes of this section, commercial liability policy excludes worker's compensation policies.
"Excess liability policy" means an insurance contract providing at least $1,000,000 of liability coverage per person or per occurrence in excess of certain required underlying liability insurance coverage.
"Owned motor vehicle" means a motor vehicle that is owned by the insured or that is leased for a term of six months or longer.
"Umbrella liability policy" means an insurance contract providing at least $1,000,000 of liability coverage per person or per occurrence in excess of certain required underlying liability insurance coverage or a specified amount of self-insured retention.
"War risks coverage" means insurance coverage provided under an aircraft insurance policy for bodily injury, mental anguish, medical expense, or damage or loss to the covered aircraft or a third party's property caused by declared or undeclared war, invasion, rebellion, insurrection or warlike operations or by an attempt to or the actual seizure or detention of an aircraft by any government, military, naval, or usurped power.
Any umbrella liability or excess liability insurance policy issued or renewed on or after November 1, 2009 is exempt from the requirements of s. 632.32 (4) (a)
, Stats., if the coverage it provides for the insured's liability arising out of the maintenance or use of a motor vehicle is limited to coverage for non-owned motor vehicles.
Any commercial liability policy issued or renewed on or after July 1, 2007, is exempt from the requirements of s. 632.32 (4)
, Stats., if its coverage of the insured's liability arising out of the maintenance or use of a motor vehicle is limited to coverage for non-owned motor vehicles.
An insurer cancelling any umbrella liability policy or excess liability policy shall notify the commissioner of the grounds for such cancellation not later than the time at which the insurer notifies the policyholder of such cancellation. Insurers shall provide notice to the insured as set forth in s. 631.36 (2) (b)
No cancellation under s. 631.36 (2) (a)
, Stats., of any war risks coverage contained in an aircraft insurance policy is effective until at least 7 days after the 1st class mailing or delivery of a written notice to the policyholder.
An insurer shall disclose on the application form for each commercial liability, umbrella liability and excess liability policy subject to sub. (4) (am)
whether or not uninsured motorist coverage, underinsured motorist coverage and medical payments coverage may be purchased from the insurer under the policy. If the insurer writes such policies without using an application form, the insurer shall send with delivery of the policy a written disclosure of whether or not uninsured motorist coverage, underinsured motorist coverage and medical payments coverage may be purchased from the insurer under the policy. The insured's signature on the application form or on the disclosure sent with the policy is not required, and the disclosure on the application form or with the delivery of the initial policy creates an irrebuttable presumption that the disclosure was made in accordance with this paragraph. An insurer is only required to provide the disclosure under this paragraph on any application form or with the delivery of the initial policy, if no application form is used, and need not provide the disclosure in connection with any subsequent renewal of or change to the policy. This paragraph first applies to policies issued on and after November 1, 2009.
Each insurer that has a policy subject to sub. (4) (am)
in effect on November 1, 2009, shall disclose in writing to one insured under each policy whether or not uninsured motorist coverage, underinsured motorist coverage and medical payments coverage may be purchased from the insurer under the policy. An insurer is required to provide the disclosure only one time and in conjunction with either the notice of, or the delivery of, the first renewal of each policy occurring on and after November 1, 2009.
Nothing in this subsection shall be interpreted to require insurers to provide uninsured motorist coverage, underinsured motorist coverage or medical payments coverage in a commercial liability, umbrella or excess policy if its coverage of the insured's liability arising out of the maintenance or use of a motor vehicle is limited to coverage for non-owned motor vehicles.
Ins 6.77 History
Emerg. cr. eff. 7-1-77; cr. Register, November, 1977, No. 263
, eff. 12-1-77; am. (1), (4) and (5), Register, May, 1987, No. 377
, eff. 6-1-87; am. (1) and (2), renum. (3) (a), (4) and (5) to be (3) (c), (4) (a) and (5) (a), cr. (3) (a) and (d), (4) (b) and (5) (b), Register, July, 1990, No. 415
, eff. 8-1-90; CR 06-117
: am. (1), (2) and (4) (a), cr. (3) (ac), (ag), (am) and (bm), (4) (b) and (c) and (6), renum. (4) (b) to be (4) (d), Register June 2007 No. 618
, eff. 7-1-07; correction in (1) made under s. 13.92 (4) (b) 7.
, Stats., Register January 2010 No. 649
: emerg. am. (1), (2), (4) (a), (b) and (6), r. (3) (ag) and (4) (c), cr. (4) (am), eff. 11-1-09; CR 09-097
: am. (1), (2), (4) (a) and (6), r. (3) (ag) and (4) (c), cr. (4) (am) Register April 2010 No. 652
, eff. 5-1-10; correction in (1) and (4) (a) made under s. 13.92 (4) (b) 7.
, Stats., Register, January, 2012 No. 673
Exemption from filing of rates. Ins 6.78(1)
The purpose of this section is to exempt from the filing requirements of s. 625.13
, Stats., those rates for risks which have been customarily written on a consent-to-rate basis and certain title insurance rates, it having been determined that such filing is not necessary to protect policyholders and the public. This rule implements and interprets ss. 625.04
, and 625.15
This section applies to the following lines or classes of insurance:
The classes specified in s. Ins 6.75 (2) (a)
, and (n)
Individual rate modifications that are a reduction from the filed title insurance rate.
(3) Exempt filings.
If a specific risk in a line or class of insurance set forth in sub. (2) (a)
is of the type which is customarily written on a consent-to-rate basis wherein the insured agrees to accept a rate that is different from the insurer's filed rates, the consent-to-rate shall not be filed with the commissioner, provided:
The insurer keeps for at least 1 year after the expiration date of the policy;
The written application signed by the insured stating the insured's reason for requesting the rate.
Prior to entering into such insurance agreements in Wisconsin the insurer has notified the commissioner of insurance of its intention so to do, identifying the contemplated lines and classes of insurance.
(4) Exempt filing.
If a title insurance rate as set forth in sub. (2) (b)
is a downward deviation of an existing filed rate, the rate shall not be filed with the commissioner provided that all of the following apply:
The insurer keeps for at least five years after the inception date of the policy the following information:
The filed rate and premium and the deviated rate and premium;
The effective date of the policy and the location and description of the risk;
Prior to entering into such insurance agreements in Wisconsin, the insurer has notified the commissioner of its intentions to do so, identifying the contemplated rate deviation program.
Ins 6.78 History
Cr. Register, January, 1980, No. 289
, eff. 2-1-80; am. (1), (2) and (3) (intro.), cr. (4), Register, February, 1993, No. 446
, eff. 3-1-93; reprinted to restore dropped copy in (3), Register, May, 1993, No. 449
Exemption from rate filing requirements. Ins 6.785(1)(1)
This section is intended to exempt certain classes of property and casualty rates from the rate filing requirements. This section implements and interprets ss. 625.04
This section applies to the lines or classes of insurance which are listed in s. Ins 6.75 (2) (a)
of direct insurance written on risks or operations in this state subject to s. 625.03
, Stats., and which are exempted under the consent-to-rate provision of s. Ins 6.78
The commissioner of insurance finds that for certain classes of business certain risks within other classes of business and certain situations, the rate filing requirements set forth in s. 625.13
, Stats., are unnecessary to achieve the purposes of ch. 625, Stats.
The commissioner bases this finding on the following reasons:
The manual rate, classification or form is inappropriate because it does not adequately reflect the exposure represented by the risk;
The risk is so different from other risks that no single manual rate or classification could be representative of all such risks;
The risk belongs to a classification that does not develop enough experience to warrant sufficient credibility for rate-making purposes; or
The risk involves a new product or coverage as to which there are no appropriate analogous exposures for rate-making purposes.
(4) Rate filing exemption.
The following rates shall not be filed with the commissioner by the insurer or rate service organization on behalf of the insurer provided the insurer complies with sub. (7)
The rate for an individual risk written under a rating rule class filed with the commissioner which must be accompanied by a certification by a qualified actuary that the rate under the rating rule class cannot be objectively rated for at least one of the following reasons:
The class generates insufficient loss experience to be reliably used in rating;
The class loss experience is so volatile as to make it unreliable;