SB618,3,2
12. Purport to alter, amend, or extend coverage provided by the policy referenced
2by the certificate of insurance or other document.
SB618,3,63 3. Alter the terms and conditions of any notice requirement in the policy. A
4person is entitled to notice of cancellation, nonrenewal, or any material change to the
5policy, or to any similar notice concerning the policy only as provided in the policy or
6an endorsement.
SB618,3,87 (b) No person may alter a certificate of insurance or other document used for
8evidence of insurance after it is issued.
SB618,3,129 (c) No certificate of insurance or other document used for evidence of insurance
10may warrant that the policy referenced by the certificate of insurance or other
11document fulfills the insurance or indemnification requirements of a specific
12contract.
SB618,3,1513 (d) 1. Except as provided in subd. 2., this subsection applies to any certificate
14of insurance or other document used for evidence of insurance that is issued by an
15insurer as evidence of property or casualty insurance.
SB618,3,1616 2. This subsection does not apply to any of the following:
SB618,3,1717 a. A policy or endorsement.
SB618,3,1818 b. A binder.
SB618,3,1919 c. Evidence of motor vehicle liability insurance required under s. 344.62 (2).
SB618,2 20Section 2. 631.36 (4) (b) of the statutes is amended to read:
SB618,3,2421 631.36 (4) (b) Exceptions. This subsection does not apply if the policyholder has
22insured elsewhere, has accepted replacement coverage, or has requested or agreed
23to nonrenewal, if the policy is renewed in an affiliate in compliance with s. 631.39,
24or if the policy is expressly designated as nonrenewable.
SB618,3 25Section 3. 631.39 of the statutes is created to read:
SB618,4,3
1631.39 Renewals in affiliates. (1) Scope. This section applies to property
2and casualty lines of insurance, excluding disability insurance, as defined in s.
3645.675 (1) (h).
SB618,4,6 4(2) Renewal requirements. An insurer may renew a policy in an affiliate
5without having to comply with s. 102.31 (2) (a) or 631.36 (4) or s. INS 21.01 (6), Wis.
6Adm. Code, if all of the following are satisfied:
SB618,4,97 (a) All of the stock of, interest in, or control of the affiliate is held by one or more
8persons in the same insurance holding company system, as defined in s. 622.03 (2),
9that includes the insurer.
SB618,4,1110 (b) The affiliate holds a valid certificate of authority in this state for the kind
11of business necessary to write the policy being renewed.
SB618,4,1512 (c) If the policy renewed in the affiliate contains terms and conditions, except
13for the rates and rating plan, that are less advantageous to the policyholder than the
14policyholder's current policy, the insurer complies with the requirements of s. 631.36
15(5).
SB618,4,1716 (d) The insurer provides notice to the policyholder at least 60 days before the
17renewal date that the policy will be renewed in an affiliate.
SB618,4,1818 (e) The notice under par. (d) includes or states all of the following information:
SB618,4,2019 1. The name and contact information of the company in which the policy will
20be renewed and that it is affiliated with the insurer.
SB618,4,2121 2. That there will be no interruption of coverage.
SB618,4,2322 3. That the premium for the renewal policy will be determined according to the
23rates and rating plan of the affiliate.
SB618,5,224 4. If the policy currently held by the policyholder is written by a mutual
25company and will be renewed in an affiliate that is a stock insurance company, that

1the policy will be renewed in an affiliate that is a stock insurance company and the
2policyholder will no longer have the rights that are granted to a mutual policyholder.
SB618,5,43 5. The A.M. Best or similar rating of the affiliate, if that rating is lower than
4the current A.M. Best or similar rating of the insurer.
SB618,5,75 6. If the amount of the premium for the policy after it is renewed in the affiliate
6will increase 25 percent or more from the amount of the premium prior to being
7renewed in the affiliate, notice of the increased premium.
SB618,5,118 (f) If the policy is a worker's compensation insurance policy under ch. 102, the
9insurer provides notice to the department of workforce development at least 60 days
10prior to renewal of the policy in an affiliate notifying the department of the name of
11the affiliate in which the policy is to be renewed.
SB618,5,13 12(3) Applicability of other law. Sections 611.78 and 618.32 do not apply to
13renewals under this section.
SB618,4 14Section 4. Initial applicability.
SB618,5,1615 (1) This act first applies to policies that are renewable on the first day of the
163rd month beginning after the effective date of this subsection.
SB618,5,1717 (End)
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