AB604: Bill Text

AB604,12,20 631.20 (7) Surplus lines insurance. Except as provided in sub. (1) (c) 9. and s. 618.41 (6m), this section does not apply to a surplus lines insurance form issued under s. 618.41 before, on, or after the effective date of this subsection .... [LRB inserts date].

AB604, s. 24 Section 24. 631.85 of the statutes is amended to read:

AB604,13,5 631.85 Appraisal or arbitration. An insurance policy may contain provision provisions for independent appraisal and compulsory arbitration, subject to the provisions of s. 631.20. If an approved policy provides for application to a court of record for the appointment of a disinterested appraiser, arbitrator , or umpire, any court of record of this state except the court of appeals or the supreme court may be requested to make an appointment. Upon appropriate request, the court shall make the appointment promptly. This section does not apply to a surplus lines insurance form issued under s. 618.41 before, on, or after the effective date of this section .... [LRB inserts date].

AB604, s. 25 Section 25. 632.32 (2) (ab) of the statutes is created to read:

AB604,13,10 632.32 (2) (ab) "Commercial automobile liability policy" means a liability insurance policy that is intended principally to provide primary coverage for the insured's liability arising out of the ownership, maintenance, or use of a motor vehicle in the insured's business or other commercial activities.

AB604, s. 26 Section 26. 632.32 (2) (ac) of the statutes, as created by 2011 Wisconsin Act 14, is amended to read:

AB604,13,21 632.32 (2) (ac) "Commercial liability policy" means any form of liability insurance policy, including a commercial or business package policy or a policy written on farm and agricultural 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 that includes coverage for the insured's liability arising out of the ownership, maintenance, or use of a motor vehicle as only one component of the policy or as coverage that is only incidental to the principal purpose of the policy. "Commercial liability policy" does not include a worker's compensation policy or a commercial automobile liability policy.

AB604, s. 27 Section 27. 632.32 (4) (a) (intro.) of the statutes is amended to read:

AB604,14,3 632.32 (4) (a) (intro.) 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:

AB604, s. 28 Section 28. 632.32 (4) (bc) of the statutes, as affected by 2011 Wisconsin Act 14, is amended to read:

AB604,14,9 632.32 (4) (bc) Notwithstanding par. (a) 2., the named insured may reject medical payments coverage. If the one named insured rejects the coverage, the coverage need not be provided in a subsequent renewal policy issued by the same insurer unless the a named insured under the policy requests it in writing.

AB604, s. 29 Section 29. 632.32 (4) (d) of the statutes, as affected by 2011 Wisconsin Act 14, is amended to read:

AB604,14,18 632.32 (4) (d) This subsection does not apply to a commercial liability policies policy 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 motor vehicles that are not owned motor vehicles, or to an umbrella or excess liability policies policy. If a commercial liability policy or an umbrella or excess liability policy provides medical payments coverage or uninsured motorist coverage, however, the coverage must have limits of at least those specified in par. (a).

AB604, s. 30 Section 30. 632.32 (4m) (a) of the statutes, as created by 2011 Wisconsin Act 14, is amended to read:

AB604,15,5 632.32 (4m) (a) Except as provided in par. (e), an insurer writing 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 to one named insured under each such insurance policy that goes into effect after November 1, 2011, that is written by the insurer and that does not include underinsured motorist coverage written notice of the availability of underinsured motorist coverage, including a brief description of the coverage. An insurer is required to provide the notice required under this paragraph only one time and in conjunction with the delivery of the policy.

AB604, s. 31 Section 31. 632.32 (4m) (e) of the statutes, as created by 2011 Wisconsin Act 14, is amended to read:

AB604,15,14 632.32 (4m) (e) This subsection does not apply to a commercial liability policies policy 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 motor vehicles that are not owned motor vehicles, or to an umbrella or excess liability policies policy. If a commercial liability policy or an umbrella or excess liability policy provides underinsured motorist coverage, however, the coverage must have limits of at least those specified in par. (d).

AB604, s. 32 Section 32. 646.01 (2) (b) of the statutes is amended to read:

AB604,15,18 646.01 (2) (b) To provide where appropriate for the continuation of protection under policies and supplemental supplementary contracts of life insurance, disability insurance and annuities.

AB604, s. 33 Section 33. 646.03 (4m) of the statutes is created to read:

AB604,15,24 646.03 (4m) "Retained asset account" means any mechanism in which the settlement of proceeds payable under a life insurance policy is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer, under a written supplementary contract not involving annuity benefits.

AB604, s. 34 Section 34. 646.31 (1) (intro.) of the statutes is amended to read:

AB604,16,4 646.31 (1) Conditions of eligibility. (intro.) A claim is not eligible for payment from the fund unless it is an unpaid claim for a loss insured under the policy or annuity, or an unpaid claim under a supplementary contract providing for a retained asset account, and all of the following conditions are met:

AB604, s. 35 Section 35. 646.31 (4) (a) of the statutes is renumbered 646.31 (4) (ap) and amended to read:

AB604,16,13 646.31 (4) (ap) Except in regard to worker's compensation insurance and except as provided in par. (b), the obligation of the fund on a single risk, loss, or life, regardless of the number of policies or contracts, may not exceed $300,000, regardless of the number of policies or contracts except that the aggregate liability of the fund for a single risk, loss, or life with respect to benefits for property insurance, liability insurance, and disability insurance, regardless of the number of those policies, may not exceed $500,000.

AB604, s. 36 Section 36. 646.31 (4) (ag) of the statutes is created to read:

AB604,16,21 646.31 (4) (ag) For purposes of this subsection, "disability insurance" means comprehensive health insurance policies and major medical health insurance policies. "Disability insurance" does not include hospital indemnity; loss of time; accidental benefits; limited or specified benefit or other ancillary coverages; disability income insurance coverage; long-term care insurance coverage; insurance coverage that is supplemental to another insurance policy or program, including Medicare supplement insurance; or similar types of policies.

AB604, s. 37 Section 37. 646.35 (1) (b) of the statutes is amended to read:

AB604,16,24 646.35 (1) (b) Life insurance and supplementary contracts providing for retained asset accounts.

AB604, s. 38 Section 38. 646.35 (6) (b) of the statutes is amended to read:

AB604,17,6 646.35 (6) (b) In the case of a disability insurance policy that is neither guaranteed renewable nor noncancelable, the fund is not obligated to continue the policy in force beyond the time required under s. 645.43 30 days after the date the order of liquidation is entered, or 30 days after the date established in the liquidation order of another state, but may continue the coverage under any disability insurance policy for up to 180 days after the date of the liquidation order.

AB604, s. 39 Section 39. Initial applicability.

AB604,17,11 (1) Ocean marine insurance tax rate. The treatment of sections 618.41 (9) (a) and 618.43 (1) (a) (intro.) (with respect to the tax rate exception for ocean marine insurance), (b), and (d) of the statutes first applies to surplus lines ocean marine insurance issued or renewed on the effective date of this subsection.

AB604, s. 40 Section 40. Effective dates. This act takes effect on the day after publication, except as follows:

AB604,17,16 (1) Auto insurance provisions. The treatment of section 632.32 (2) (ab) and (ac), (4) (a) (intro.), (bc), and (d), and (4m) (a) and (e) of the statutes takes effect on November 1, 2011, or on the day after publication, whichever is later.

AB604,17,17 (End)