SB160,3,20 20(2) Definitions. In this section:
SB160,3,2321 (a) "Federal metropolitan statistical area" means an area defined by the federal
22office of management and budget under 44 USC 3504 (d) (3) as a metropolitan
23statistical area or a primary metropolitan statistical area.
SB160,3,2524 (b) "Midpoint rate" means the arithmetic average of the lowest premium rate
25and the highest premium rate within a rate band.
SB160,4,6
1(c) "Motor vehicle insurance policy" means an insurance policy issued or
2delivered in this state to an individual that provides motor vehicle physical damage
3or collision coverage or coverage for the insured's liability for loss or damage to a
4person or property resulting from a motor vehicle accident, or any combination of
5those types of coverage, and under which each motor vehicle designated as insured
6is any of the following types:
SB160,4,87 1. A private passenger automobile that is not used as a public or livery
8conveyance for passengers or rented to others.
SB160,4,109 2. Any other 4-wheel motor vehicle that is designed for travel on public roads
10and that has a load capacity of no more than 1,500 pounds.
SB160,4,1111 3. A motorcycle or moped.
SB160,4,1212 (d) "Municipality" means a city, village or town.
SB160,4,14 13(3) Determining rates. For all types of coverage under a policy that is subject
14to this section, an insurer shall determine initial rates as follows:
SB160,4,1815 (a) The insurer shall first divide the federal metropolitan statistical area
16specified in sub. (1) into separate contiguous areas. Each such contiguous area must
17include one or more municipalities and may not include less than all of any
18municipality that is included in the contiguous area.
SB160,4,2119 (b) All motor vehicle insurance policies subject to this section, of all insureds
20residing within a contiguous area designated by the insurer under par. (a), shall
21constitute a class.
SB160,4,2422 (c) Except for modifications for individual risks as permitted by rule under sub.
23(4) (a), the insurer shall charge the same rate for the same or similar type of coverage
24under all policies within the same class.
SB160,5,2
1(d) For each type of coverage, the insurer may establish no more than 2 rate
2bands for all motor vehicle insurance policies subject to this section.
SB160,5,43 (e) No rate within a rate band may vary from the midpoint rate within the rate
4band by more than 7.5% of that midpoint rate.
SB160,5,75 (f) If the insurer establishes 2 rate bands for a type of coverage, the highest rate
6within one rate band may not vary from the highest rate within the other rate band
7by more than 15% of the higher of those 2 rates.
SB160,5,11 8(4) Rules for modifications for individual risks. (a) The commissioner shall
9promulgate rules specifying factors that an insurer, after determining rates as
10provided in sub. (3), may consider in modifying such rates for individual risks. The
11factors shall include all of the following:
SB160,5,1312 1. Subject to s. 632.36 (1), the driving safety record, including accidents and
13tickets, of the drivers of the insured motor vehicle.
SB160,5,1414 2. The amount of driving experience of the drivers of the insured motor vehicle.
SB160,5,1515 3. The number of miles that the insured motor vehicle is driven each year.
SB160,5,1616 4. The value of the insured motor vehicle.
SB160,5,1817 5. Subject to par. (b), any other factors that the commissioner determines are
18relevant.
SB160,5,2019 (b) Rates determined under sub. (3) may not be modified on the basis of the zip
20code of the insured or the zip code of any other driver of the insured motor vehicle.
SB160,5,2321 (c) Notwithstanding sub. (3) (e) and (f), a rate determined under sub. (3) that
22is modified for individual risks in accordance with rules promulgated under par. (a)
23may fall outside a rate band established under sub. (3).
SB160,6,2 24(5) Rate service organizations. If an insurer uses rates for motor vehicle
25insurance policies that are prepared by a rate service organization designated under

1s. 625.15, rates filed by the rate service organization on behalf of the insurer must
2comply with this section.
SB160,6,5 3(6) Exceptions. This section does not apply to a motor vehicle insurance policy
4that insures more than 4 vehicles or that is issued under a risk-sharing plan
5established under s. 619.01 (1) or continued under s. 619.01 (6).
SB160, s. 6 6Section 6 . Nonstatutory provisions; insurance.
SB160,6,107 (1) The commissioner of insurance shall submit in proposed form the rules
8required under section 632.39 (4) (a) of the statutes, as created by this act, to the
9legislative council staff under section 227.15 (1) of the statutes no later than the first
10day of the 10th month beginning after the effective date of this subsection.
SB160, s. 7 11Section 7. Initial applicability; insurance.
SB160,6,1412 (1) This act first applies to rates and premiums for motor vehicle insurance
13policies, as defined in section 632.39 (2) (c) of the statutes, as created by this act, that
14are issued or renewed on the effective date of this subsection.
SB160, s. 8 15Section 8. Effective dates; insurance. This act takes effect on the first day
16of the 13th month beginning after publication, except as follows:
SB160,6,1817 (1) The treatment of section 632.39 (4) (a) and (b) of the statutes and Section
186 (1 ) of this act take effect on the day after publication.
SB160,6,1919 (End)
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