AB75: Bill Text

AB75,1542,7 632.32 (2) (f) "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. "Uninsured motor vehicle" also includes both of the following motor vehicles involved in an accident with a person who has uninsured motorist coverage:

AB75,1542,9 1. An insured motor vehicle if before or after the accident the liability insurer of the motor vehicle is declared insolvent by a court of competent jurisdiction.

AB75,1542,10 2. An unidentified motor vehicle.

AB75, s. 3155 Section 3155. 632.32 (2) (g) of the statutes is created to read:

AB75,1542,15 632.32 (2) (g) "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.

AB75, s. 3156 Section 3156. 632.32 (4) (title) of the statutes is amended to read:

AB75,1542,18 632.32 (4) (title) Required uninsured motorist, underinsured motorist, and medical payments coverages.

AB75, s. 3157 Section 3157. 632.32 (4) (intro.) (except 632.32 (4) (title)) of the statutes is renumbered 632.32 (4) (a) (intro.) and amended to read:

AB75,1543,2 632.32 (4) (a) (intro.) Every policy of insurance subject to this section that insures with respect to any 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 the following provisions for all of the following coverages:

AB75, s. 3158 Section 3158. 632.32 (4) (a) (title) of the statutes is repealed.

AB75, s. 3159 Section 3159. 632.32 (4) (a) 1. of the statutes is amended to read:

AB75,1543,10 632.32 (4) (a) 1. For the protection of persons injured who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness or disease, including death resulting therefrom Excluding a policy written by a town mutual organized under ch. 612, uninsured motorist coverage, in limits of at least $25,000 $100,000 per person and $50,000 $300,000 per accident.

AB75, s. 3160 Section 3160. 632.32 (4) (a) 2. of the statutes is repealed.

AB75, s. 3161 Section 3161. 632.32 (4) (a) 2m. of the statutes is created to read:

AB75,1543,15 632.32 (4) (a) 2m. 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.

AB75, s. 3162 Section 3162. 632.32 (4) (a) 3. of the statutes is renumbered 632.32 (4) (c) and amended to read:

AB75,1543,21 632.32 (4) (c) Insurers Unless an insurer waives the right to subrogation, insurers making payment under the uninsured motorists' coverage any of the coverages under this subsection shall, to the extent of the payment, be subrogated to the rights of their insureds.

AB75, s. 3163 Section 3163. 632.32 (4) (b) (title) of the statutes is repealed.

AB75, s. 3164 Section 3164. 632.32 (4) (b) of the statutes is renumbered 632.32 (4) (a) 3m. and amended to read:

AB75,1544,10 632.32 (4) (a) 3m. To indemnify for medical payments or chiropractic payments or both Medical payments coverage, in the amount of at least $1,000 $10,000 per person for protection of all persons using the insured motor vehicle from losses resulting from bodily injury or death. The named insured may reject the coverage. If the named insured rejects the coverage, it need not be provided in a subsequent renewal policy issued by the same insurer unless the insured requests it in writing. Under the medical or chiropractic payments coverage, the insurer shall be subrogated to the rights of its insured to the extent of its payments. Coverage written under this paragraph subdivision may be excess coverage over any other source of reimbursement to which the insured person has a legal right.

AB75, s. 3165 Section 3165. 632.32 (4) (bc) of the statutes is created to read:

AB75,1544,15 632.32 (4) (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.

AB75, s. 3166 Section 3166. 632.32 (4m) of the statutes is repealed.

AB75, s. 3167 Section 3167. 632.32 (4r) of the statutes is created to read:

AB75,1545,2 632.32 (4r) Required written offers of uninsured motorist and underinsured motorist coverages for umbrella or excess liability policies. (a) An insurer writing umbrella or excess liability policies that insure with respect to a 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).

AB75,1545,6 (b) 1. Each application for an umbrella or excess liability policy issued on or after the effective date of this subdivision .... [LRB inserts date], shall contain a written offer of uninsured motorist coverage and a written offer of underinsured motorist coverage.

AB75,1545,14 2. For umbrella or excess liability policies that are in effect on the effective date of this subdivision .... [LRB inserts date], 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 the effective date of this subdivision .... [LRB inserts date].

AB75,1545,19 (c) An applicant or named insureds may reject one or both of the coverages offered, but must do so in writing. If the applicant or named insureds reject either of the coverages offered, the insurer is not required to provide the rejected coverage under a policy that is renewed to the person by that insurer unless an insured under the policy subsequently requests the rejected coverage in writing.

AB75,1546,4 (d) If an umbrella or excess liability policy that was issued on or after the effective date of this paragraph .... [LRB inserts date], or an umbrella or excess liability policy that was in effect on, but renewed after, the effective date of this paragraph .... [LRB inserts date], 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.

AB75,1546,5 (e) This subsection does not apply to a town mutual organized under ch. 612.

AB75, s. 3168 Section 3168. 632.32 (5) (f) of the statutes is renumbered 632.32 (6) (d) and amended to read:

AB75,1546,13 632.32 (6) (d) A 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 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.

AB75, s. 3169 Section 3169. 632.32 (5) (g) of the statutes is renumbered 632.32 (6) (e) and amended to read:

AB75,1546,21 632.32 (6) (e) A 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 the highest 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.

AB75, s. 3170 Section 3170. 632.32 (5) (h) of the statutes is renumbered 632.32 (6) (f) and amended to read:

AB75,1547,3 632.32 (6) (f) A 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 the highest any single limit of medical payments coverage for any motor vehicle with respect to which the person is insured.

AB75, s. 3171 Section 3171. 632.32 (5) (i) of the statutes is renumbered 632.32 (6) (g), and 632.32 (6) (g) (intro.), as renumbered, is amended to read:

AB75,1547,9 632.32 (6) (g) (intro.) A 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:

AB75, s. 3172 Section 3172. 632.32 (5) (j) of the statutes is renumbered 632.32 (6) (h), and 632.32 (6) (h) (intro.), as renumbered, is amended to read:

AB75,1547,14 632.32 (6) (h) (intro.) A No 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:

AB75, s. 3173 Section 3173. 632.72 (1g) (b) of the statutes is amended to read:

AB75,1547,19 632.72 (1g) (b) "Medical benefits or assistance" means health care services funded by a relief block grant under ch. 49, as defined in s. 49.001 (5p); medical assistance, as defined under s. 49.43 (8); or maternal and child health services under s. 253.05.

AB75, s. 3174 Section 3174. 632.7497 of the statutes is created to read:

AB75,1547,24 632.7497 Modifications at renewal. (1) In this section, "individual major medical or comprehensive health benefit plan" includes coverage under a group health benefit plan that is underwritten on an individual basis and issued to individuals or families.

AB75,1548,3 (2) An insurer that issues an individual major medical or comprehensive health benefit plan shall, at the time of a coverage renewal, at the request of an insured, permit the insured to do either of the following:

AB75,1548,4 (a) Change his or her coverage to any of the following:

AB75,1548,6 1. A different but comparable individual major medical or comprehensive health benefit plan currently offered by the insurer.

AB75,1548,8 2. An individual major medical or comprehensive health benefit plan currently offered by the insurer with more limited benefits.

AB75,1548,10 3. An individual major medical or comprehensive health benefit plan currently offered by the insurer with higher deductibles.

AB75,1548,13 (b) Modify his or her existing coverage by electing an optional higher deductible, if any, under the individual major medical or comprehensive health benefit plan.

AB75,1548,17 (3) (a) The insurer may not impose any new preexisting condition exclusion under the new or modified coverage under sub. (2) that did not apply to the insured's original coverage and shall allow the insured credit under the new or modified coverage for the period of original coverage.

AB75,1548,20 (b) For the new or modified coverage, the insurer may not rate for health status other than on the insured's health status at the time the insured applied for the original coverage and as the insured disclosed on the original application.

AB75,1548,23 (4) (a) Annually, the insurer shall mail to each insured under an individual major medical or comprehensive health benefit plan issued by the insurer, a notice that includes all of the following information:

AB75,1548,25 1. That the insured has the right to elect alternative coverage as described in sub. (2).

AB75,1549,1 2. A description of the alternatives available to the insured.

AB75,1549,2 3. The procedure for making the election.

AB75,1549,4 (b) The insurer shall mail the notice under par. (a) not more than 3 months nor less than 60 days before the renewal date of the insured's plan.

AB75,1549,7 (5) (a) Nothing in this section requires an insurer to issue alternative coverage under sub. (2) if the insured's coverage may be nonrenewed or discontinued under s. 632.7495 (2), (3) (b), or (4).

AB75,1549,11 (b) Notwithstanding s. 600.01 (1) (b) 3. and 4., this section applies to a group health benefit plan described in s. 600.01 (1) (b) 3. or 4. if that group health benefit plan is an individual major medical or comprehensive health benefit plan as defined in sub. (1).

AB75, s. 3175 Section 3175. 632.76 (2) (a) of the statutes is amended to read:

AB75,1549,18 632.76 (2) (a) No claim for loss incurred or disability commencing after 2 years 12 months from the date of issue of the policy may be reduced or denied on the ground that a disease or physical condition existed prior to the effective date of coverage, unless the condition was excluded from coverage by name or specific description by a provision effective on the date of loss. This paragraph does not apply to a group health benefit plan, as defined in s. 632.745 (9), which is subject to s. 632.746.

AB75, s. 3176 Section 3176. 632.76 (2) (ac) of the statutes is created to read:

AB75,1549,24 632.76 (2) (ac) An individual disability insurance policy, as defined in s. 632.895 (1) (a), may not define a preexisting condition more restrictively than a condition, whether physical or mental, regardless of the cause of the condition, for which medical advice, diagnosis, care, or treatment was recommended or received within 12 months before the effective date of coverage.

AB75, s. 3177 Section 3177. 632.76 (2) (b) of the statutes is amended to read:

AB75,1550,18 632.76 (2) (b) Notwithstanding par. (a), no claim for loss incurred or disability commencing after 6 months from the date of issue of a medicare supplement policy, medicare replacement policy or long-term care insurance policy may be reduced or denied on the ground that a disease or physical condition existed prior to the effective date of coverage. A Notwithstanding par. (ac), a medicare supplement policy, medicare replacement policy, or long-term care insurance policy may not define a preexisting condition more restrictively than a condition for which medical advice was given or treatment was recommended by or received from a physician within 6 months before the effective date of coverage. Notwithstanding par. (a), if on the basis of information contained in an application for insurance a medicare supplement policy, medicare replacement policy, or long-term care insurance policy excludes from coverage a condition by name or specific description, the exclusion must terminate no later than 6 months after the date of issue of the medicare supplement policy, medicare replacement policy, or long-term care insurance policy. The commissioner may by rule exempt from this paragraph certain classes of medicare supplement policies, medicare replacement policies, and long-term care insurance policies, if the commissioner finds the exemption is not adverse to the interests of policyholders and certificate holders.

AB75, s. 3178 Section 3178. 632.835 (title) of the statutes is amended to read:

AB75,1550,21 632.835 (title) Independent review of adverse and experimental treatment coverage denial determinations.

AB75, s. 3179 Section 3179. 632.835 (1) (ag) of the statutes is created to read:

AB75,1550,25 632.835 (1) (ag) "Coverage denial determination" means an adverse determination, an experimental treatment determination, a preexisting condition exclusion denial determination, or the rescission of a policy or certificate.

AB75, s. 3180 Section 3180. 632.835 (1) (cm) of the statutes is created to read:

AB75,1551,5 632.835 (1) (cm) "Preexisting condition exclusion denial determination" means a determination by or on behalf of an insurer that issues a health benefit plan denying or terminating treatment or payment for treatment on the basis of a preexisting condition exclusion, as defined in s. 632.745 (23).

AB75, s. 3181 Section 3181. 632.835 (2) (a) of the statutes is amended to read:

AB75,1551,11 632.835 (2) (a) Every insurer that issues a health benefit plan shall establish an independent review procedure whereby an insured under the health benefit plan, or his or her authorized representative, may request and obtain an independent review of an adverse determination or an experimental treatment a coverage denial determination made with respect to the insured.

AB75, s. 3182 Section 3182. 632.835 (2) (b) of the statutes is amended to read:

AB75,1551,20 632.835 (2) (b) If an adverse determination or an experimental treatment a coverage denial determination is made, the insurer involved in the determination shall provide notice to the insured of the insured's right to obtain the independent review required under this section, how to request the review, and the time within which the review must be requested. The notice shall include a current listing of independent review organizations certified under sub. (4). An independent review under this section may be conducted only by an independent review organization certified under sub. (4) and selected by the insured.

AB75, s. 3183 Section 3183. 632.835 (2) (bg) 3. of the statutes is amended to read:

AB75,1552,6 632.835 (2) (bg) 3. For any adverse determination or experimental treatment coverage denial determination for which an explanation of benefits is not provided to the insured, the insurer provides a notice that the insured may have a right to an independent review after the internal grievance process and that an insured may be entitled to expedited, independent review with respect to an urgent matter. The notice shall also include a reference to the section of the policy or certificate that contains the description of the independent review procedure as required under subd. 1. The notice shall provide a toll-free telephone number and website, if appropriate, where consumers may obtain additional information regarding internal grievance and independent review processes.

AB75, s. 3184 Section 3184. 632.835 (2) (c) of the statutes is amended to read:

AB75,1552,13 632.835 (2) (c) Except as provided in par. (d), an insured must exhaust the internal grievance procedure under s. 632.83 before the insured may request an independent review under this section. Except as provided in sub. (9) (a), an insured who uses the internal grievance procedure must request an independent review as provided in sub. (3) (a) within 4 months after the insured receives notice of the disposition of his or her grievance under s. 632.83 (3) (d).

AB75, s. 3185 Section 3185. 632.835 (2) (e) of the statutes is created to read:

AB75,1552,16 632.835 (2) (e) Nothing in this section affects an insured's right to commence a civil proceeding relating to a coverage denial determination.

AB75, s. 3186 Section 3186. 632.835 (3) (a) of the statutes is amended to read:

AB75,1553,5 632.835 (3) (a) To request an independent review, an insured or his or her authorized representative shall provide timely written notice of the request for independent review, and of the independent review organization selected, to the insurer that made or on whose behalf was made the adverse or experimental treatment coverage denial determination. The insurer shall immediately notify the commissioner and the independent review organization selected by the insured of the request for independent review. The insured or his or her authorized representative must pay a $25 fee to the independent review organization. If the insured prevails on the review, in whole or in part, the entire amount paid by the insured or his or her authorized representative shall be refunded by the insurer to the insured or his or her authorized representative. For each independent review in which it is involved, an insurer shall pay a fee to the independent review organization.

AB75, s. 3187 Section 3187. 632.835 (3) (e) of the statutes is amended to read:

AB75,1553,17 632.835 (3) (e) In addition to the information under pars. (b) and (c), the independent review organization may accept for consideration any typed or printed, verifiable medical or scientific evidence that the independent review organization determines is relevant, regardless of whether the evidence has been submitted for consideration at any time previously. The insurer and the insured shall submit to the other party to the independent review any information submitted to the independent review organization under this paragraph and pars. (b) and (c). If, on the basis of any additional information, the insurer reconsiders the insured's grievance and determines that the treatment that was the subject of the grievance should be covered, or that the policy or certificate that was rescinded should be reinstated, the independent review is terminated.

AB75, s. 3188 Section 3188. 632.835 (3) (f) of the statutes is renumbered 632.835 (3) (f) 1. and amended to read:

AB75,1554,2 632.835 (3) (f) 1. If the independent review is not terminated under par. (e), the independent review organization shall, within 30 business days after the expiration of all time limits that apply in the matter, make a decision on the basis of the documents and information submitted under this subsection. The decision shall be in writing, signed on behalf of the independent review organization and served by personal delivery or by mailing a copy to the insured or his or her authorized representative and to the insurer. A Except as provided in subd. 2., a decision of an independent review organization is binding on the insured and the insurer.

AB75, s. 3189 Section 3189. 632.835 (3) (f) 2. of the statutes is created to read:

AB75,1554,6 632.835 (3) (f) 2. A decision of an independent review organization regarding a preexisting condition exclusion denial determination or a rescission is not binding on the insured.