632.32(2)(b)
(b) "Motor vehicle handler" means any of the following:
632.32(2)(b)3.
3. A repair shop, service station, storage garage or public parking place.
632.32(2)(be)
(be) "Owned motor vehicle" means a motor vehicle that is owned by the insured or that is leased by the insured for a term of 6 months or longer.
632.32(2)(cm)
(cm) "Umbrella or 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 or a specified amount of self-insured retention.
632.32(2)(d)
(d) "Underinsured motorist coverage" means coverage for the protection of persons insured under that coverage who are legally entitled to recover damages for bodily injury, death, sickness, or disease from owners or operators of underinsured motor vehicles.
632.32(2)(e)
(e) "Underinsured motor vehicle" means a motor vehicle to which all of the following apply:
632.32(2)(e)1.
1. The motor vehicle is involved in an accident with a person who has underinsured motorist coverage.
632.32(2)(e)2.
2. At the time of the accident, a bodily injury liability insurance policy applies to the motor vehicle or the owner or operator of the motor vehicle has furnished proof of financial responsibility for the future under
subch. III of ch. 344 and it is in effect or is a self-insurer under another applicable motor vehicle law.
632.32(2)(e)3.
3. The limits under the bodily injury liability insurance policy or with respect to the proof of financial responsibility or self-insurance are less than the amount needed to fully compensate the insured for his or her damages.
632.32(2)(f)
(f) "Uninsured motorist coverage" means coverage for the protection of persons insured under that coverage who are legally entitled to recover damages for bodily injury, death, sickness, or disease from owners or operators of uninsured motor vehicles.
632.32(2)(g)
(g) "Uninsured motor vehicle" means a motor vehicle that is involved in an accident with a person who has uninsured motorist coverage and with respect to which, at the time of the accident, a bodily injury liability insurance policy is not in effect and the owner or operator has not furnished proof of financial responsibility for the future under
subch. III of ch. 344 and is not a self-insurer under any other applicable motor vehicle law. "Uninsured motor vehicle" also includes any of the following motor vehicles involved in an accident with a person who has uninsured motorist coverage:
632.32(2)(g)1.
1. An insured motor vehicle, or a motor vehicle with respect to which the owner or operator is a self-insurer under any applicable motor vehicle law, if before or after the accident the liability insurer of the motor vehicle, or the self-insurer, is declared insolvent by a court of competent jurisdiction.
632.32(2)(g)2.
2. Except as provided in
subd. 3., an unidentified motor vehicle, provided that an independent 3rd party provides evidence in support of the unidentified motor vehicle's involvement in the accident.
632.32(2)(g)3.
3. An unidentified motor vehicle involved in a hit-and-run accident with the person.
632.32(2)(h)
(h) "Using" includes driving, operating, manipulating, riding in and any other use.
632.32(3)
(3) Required provisions. Except as provided in
sub. (5), every policy subject to this section issued to an owner shall provide that:
632.32(3)(a)
(a) Coverage provided to the named insured applies in the same manner and under the same provisions to any person using any motor vehicle described in the policy when the use is for purposes and in the manner described in the policy.
632.32(3)(b)
(b) Coverage extends to any person legally responsible for the use of the motor vehicle.
632.32(4)
(4) Required uninsured motorist, underinsured motorist, and medical payments coverages. 632.32(4)(a)(a) Except as provided in
par. (d), every policy of insurance subject to this section that insures with respect to any owned motor vehicle registered or principally garaged in this state against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle shall contain therein or supplemental thereto provisions for all of the following coverages:
632.32(4)(a)1.
1. Excluding a policy written by a town mutual organized under
ch. 612, uninsured motorist coverage, in limits of at least $100,000 per person and $300,000 per accident.
632.32(4)(a)2m.
2m. Excluding a policy written by a town mutual organized under
ch. 612, underinsured motorist coverage, in limits of at least $100,000 per person and $300,000 per accident.
632.32(4)(a)3m.
3m. Medical payments coverage, in the amount of at least $10,000 per person. Coverage written under this subdivision may be excess coverage over any other source of reimbursement to which the insured person has a legal right.
632.32(4)(bc)
(bc) Notwithstanding
par. (a) 3m., the named insured may reject medical payments coverage. If the named insured rejects the coverage, the coverage need not be provided in a subsequent renewal policy issued by the same insurer unless the insured requests it in writing.
632.32(4)(c)
(c) Unless an insurer waives the right to subrogation, insurers making payment under any of the coverages under this subsection shall, to the extent of the payment, be subrogated to the rights of their insureds.
632.32(4)(d)
(d) This subsection does not apply to umbrella or excess liability policies, which are subject to
sub. (4r).
632.32 Cross-reference
Cross-reference: See also s.
Ins 6.77, Wis. adm. code.
632.32(4r)
(4r) Required written offers of uninsured motorist and underinsured motorist coverages for umbrella or excess liability policies. 632.32(4r)(a)(a) An insurer writing umbrella or excess liability policies that insure with respect to an owned motor vehicle registered or principally garaged in this state against loss resulting from liability imposed by law for bodily injury or death suffered by a person arising out of the ownership, maintenance, or use of a motor vehicle shall provide written offers of uninsured motorist coverage and underinsured motorist coverage, which offers shall include a brief description of the coverage offered. An insurer is required to provide the offers required under this subsection only one time with respect to any policy in the manner provided in
par. (b).
632.32(4r)(b)1.1. Each application for an umbrella or excess liability policy issued on or after November 1, 2009, shall contain a written offer of uninsured motorist coverage and a written offer of underinsured motorist coverage.
632.32(4r)(b)2.
2. For umbrella or excess liability policies that are in effect on November 1, 2009, the insurer shall provide a written offer of uninsured motorist coverage to the named insureds under each policy that does not include uninsured motorist coverage and a written offer of underinsured motorist coverage to the named insureds under each policy that does not include underinsured motorist coverage. The insurer shall provide an offer under this subdivision in conjunction with the notice of the first renewal of the policy occurring after November 1, 2009.
632.32(4r)(c)
(c) An applicant or a named insured may reject one or both of the coverages offered, but must do so in writing. If the applicant or named insured rejects either of the coverages offered, the insurer is not required to provide the rejected coverage under the policy at renewal by that insurer unless an insured under the policy subsequently requests the rejected coverage in writing. The action of one named insured to reject or request coverage applies to all persons insured under the policy.
632.32(4r)(d)
(d) If an umbrella or excess liability policy that was issued on or after November 1, 2009, or an umbrella or excess liability policy that was in effect on, but renewed after, November 1, 2009, includes neither uninsured motorist coverage nor underinsured motorist coverage, or only one of the coverages, and the insurer did not provide a written offer required under
par. (b) 1. or
2. with respect to the coverage or coverages not included, on the request of the insured the court shall reform the policy to include the coverage or coverages not included and for which the insurer did not provide a written offer, with the same limits as the liability coverage limits under the policy.
632.32(4r)(e)
(e) This subsection does not apply to a town mutual organized under
ch. 612.
632.32 Cross-reference
Cross-reference: See also s.
Ins 6.77, Wis. adm. code.
632.32(5)(a)(a) A policy may limit coverage to use that is with the permission of the named insured or, if the insured is an individual, to use that is with the permission of the named insured or an adult member of that insured's household other than a chauffeur or domestic servant. The permission is effective even if it violates
s. 343.45 (2) and even if the use is not authorized by law.
632.32(5)(b)
(b) If the policy is issued to anyone other than a motor vehicle handler, it may limit the coverage afforded to a motor vehicle handler or its officers, agents or employees to the limits under
s. 344.01 (2) (d) and to instances when there is no other valid and collectible insurance with at least those limits whether the other insurance is primary, excess or contingent.
632.32(5)(c)
(c) If the policy is issued to a motor vehicle handler, it may restrict coverage afforded to anyone other than the motor vehicle handler or its officers, agents or employees to the limits under
s. 344.01 (2) (d) and to instances when there is no other valid and collectible insurance with at least those limits whether the other insurance is primary, excess or contingent.
632.32(5)(d)
(d) If a motor vehicle covered by the policy is sold or transferred, the purchaser or transferee is not an additional insured unless the consent of the insurer is endorsed on the policy.
632.32(5)(e)
(e) A policy may provide for exclusions not prohibited by
sub. (6) or other applicable law. Such exclusions are effective even if incidentally to their main purpose they exclude persons, uses or coverages that could not be directly excluded under
sub. (6) (b).
632.32(5)(j)
(j) A policy may provide that any coverage under the policy does not apply to a loss resulting from the use of a motor vehicle that meets all of the following conditions:
632.32(5)(j)1.
1. Is owned by the named insured, or is owned by the named insured's spouse or a relative of the named insured if the spouse or relative resides in the same household as the named insured.
632.32(5)(j)2.
2. Is not described in the policy under which the claim is made.
632.32(5)(j)3.
3. Is not covered under the terms of the policy as a newly acquired or replacement motor vehicle.
632.32(6)(a)(a) No policy issued to a motor vehicle handler may exclude coverage upon any of its officers, agents or employees when any of them are using motor vehicles owned by customers doing business with the motor vehicle handler.
632.32(6)(b)
(b) No policy may exclude from the coverage afforded or benefits provided:
632.32(6)(b)1.
1. Persons related by blood, marriage or adoption to the insured.
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(6)(d)
(d) No policy may provide that, regardless of the number of policies involved, vehicles involved, persons covered, claims made, vehicles or premiums shown on the policy, or premiums paid, the limits for any uninsured motorist coverage or underinsured motorist coverage under the policy may not be added to the limits for similar coverage applying to other motor vehicles to determine the limit of insurance coverage available for bodily injury or death suffered by a person in any one accident, except that a policy may limit the number of motor vehicles for which the limits for coverage may be added to 3 vehicles.
632.32(6)(e)
(e) No policy may provide that the maximum amount of uninsured motorist coverage or underinsured motorist coverage available for bodily injury or death suffered by a person who was not using a motor vehicle at the time of an accident is any single limit of uninsured motorist coverage or underinsured motorist coverage, whichever is applicable, for any motor vehicle with respect to which the person is insured, except that a policy may limit the number of motor vehicles for which coverage limits may be added to 3 vehicles.
632.32(6)(f)
(f) No policy may provide that the maximum amount of medical payments coverage available for bodily injury or death suffered by a person who was not using a motor vehicle at the time of an accident is any single limit of medical payments coverage for any motor vehicle with respect to which the person is insured, except that a policy may limit the number of motor vehicles for which medical payments coverage limits may be added to 3 vehicles.
632.32(6)(g)
(g) No policy may provide that the limits under the policy for uninsured motorist coverage or underinsured motorist coverage for bodily injury or death resulting from any one accident shall be reduced by any of the following that apply:
632.32(6)(g)1.
1. Amounts paid by or on behalf of any person or organization that may be legally responsible for the bodily injury or death for which the payment is made.
632.32(6)(g)2.
2. Amounts paid or payable under any worker's compensation law.
632.32(6)(g)3.
3. Amounts paid or payable under any disability benefits laws.
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 Note
NOTE: 1995 Wisconsin Act 21, which became effective July 15, 1995, made significant changes in the law regarding the "stacking" of insurance policy coverage.
632.32 Note
NOTE: 2009 Wisconsin Act 28, made significant changes to this section, effective November 1, 2009, regarding uninsured and underinsured motorist coverage, as well as stacking and reducing insurance policy coverage.
632.32 Annotation
A "family exclusion clause" valid in the state of policy issuance will be given effect in Wisconsin. Knight v. Heritage Mutual Insurance Co.
71 Wis. 2d 821,
239 N.W.2d 348 (1976).
632.32 Annotation
The concept of permissive use is the same regardless of whether it arises under the "any motor vehicle" coverage section of s. 344.33 (2) or the omnibuses coverage statute. Gross v. Joecks,
72 Wis. 2d 583,
241 N.W.2d 727 (1976).
632.32 Annotation
A "fellow employee" exclusion clause is only valid if the tort-feasor and injured party are employees of the named insured and employer is required to provide worker's compensation coverage. Dahm v. Employers Mutual Liability Insurance Co.
74 Wis. 2d 123,
246 N.W.2d 131 (1976).
632.32 Annotation
A spouse who was not party to the contract, reasonably believing that coverage existed after the insured spouse's death, must be given a grace period before having to comply with technical, not commonly known provisions of a policy. Handal v. American Farmers Mutual Casualty Co.
79 Wis. 2d 67,
255 N.W.2d 903 (1977).
632.32 Annotation
Generally when a permissive user of a vehicle is the real owner of the car for all practical purposes, but not the named insured, and the permissive user grants permission for a 3rd person to use the vehicle, the named insured's permission is implied. American Family Mutual Insurance Co. v. Osusky,
90 Wis. 2d 142,
279 N.W.2d 719 (Ct. App. 1979).
632.32 Annotation
Injury to a police officer who was stabbed while unloading beer cans from an automobile did not arise out of use of the automobile. Tomlin v. State Farm Mutual Auto. Insurance Co.
95 Wis. 2d 215,
290 N.W.2d 285 (1980).
632.32 Annotation
Third parties may recover against an insurer even though the insured's fraudulent application voided the policy under s. 631.11. Rauch v. American Family Insurance Co.
115 Wis. 2d 257,
340 N.W.2d 478 (1983).
632.32 Annotation
Arguments that "reduction clauses" in uninsured motorist provisions were invalid and that a release did not bar subsequent a claim against the insurer for bad faith were frivolous. Radlein v. Industrial Fire & Casualty Insurance Co.
117 Wis. 2d 605,
345 N.W.2d 874 (1984).
632.32 Annotation
A "drive other car" exclusion that prohibited stacking of uninsured motorist benefits against the same insurer was voided by s. 631.43. Welch v. State Farm Mutual Automobile Insurance Co.
122 Wis. 2d 172,
361 N.W.2d 680 (1985).
632.32 Annotation
A reducing clause in an uninsured motorist provision was voided by [former] sub. (4) (a). Nicholson v. Home Insurance Cos.
137 Wis. 2d 581,
405 N.W.2d 327 (1987).
632.32 Annotation
Because uninsured motorist coverage is "personal and portable," the claimant was covered by a policy on a vehicle not involved in the accident. Parks v. Waffle,
138 Wis. 2d 70,
405 N.W.2d 690 (Ct. App. 1987).
632.32 Annotation
Loss of consortium is not a separate bodily injury under a policy's "each person" limitation. Landsinger v. American Family Mutual Insurance Co.
142 Wis. 2d 138,
417 N.W.2d 899 (Ct. App. 1987).
632.32 Annotation
An insurer could not avoid uninsured motorist coverage based on a policy provision excluding resident relatives who own their own car. Hulsey v. American Family Mutual Insurance Co.
142 Wis. 2d 639,
419 N.W.2d 288 (Ct. App. 1987).
632.32 Annotation
A reducing clause and "regular use" exclusionary clause violated [former] sub. (4) (a). Niemann v. Badger Mutual Insurance Co.
143 Wis. 2d 73,
420 N.W.2d 378 (Ct. App. 1988).
