Notice of Hearing
Insurance
Notice is hereby given that pursuant to the authority granted under s.
601.41 (3), Stats., and the procedures set forth in under s.
227.18, Stats., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order affecting Section
Ins 6.77, Wis. Adm. Code, relating to underinsured and uninsured motorist coverage in umbrella and commercial policies and affecting small business. This hearing will also be held in compliance with s.
227.24 (4) concerning the emergency rule which corresponds to the proposed rule, as this proposed rule has been issued as an emergency rule.
Hearing Information
Date: December 11, 2006
Time: 10:00 a.m., or as soon thereafter as the matter may be reached
Place: OCI, Room 227, 125 South Webster St 2nd Floor, Madison, WI
Written comments can be mailed to:
Mr. Robert Luck
Legal Unit - OCI Rule Comment for Rule Ins 6.77
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
Mr. Robert Luck
Legal Unit - OCI Rule Comment for Rule Ins 6.77
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53702
Comments can be emailed to:
Robert Luck
Comments submitted through the Wisconsin Administrative Rule website at: http://adminrules. wisconsin.gov on the proposed rule will be considered.
The deadline for submitting comments is 4:00 p.m. on the 8th day after the date for the hearing stated in this Notice.
Analysis Prepared by the Office of the Commissioner of Insurance (OCI)
1. Statutes interpreted:
2. Statutory authority:
3. Explanation of the OCI's authority to promulgate the proposed rule under these statutes:
Under s.
631.01 (5), the commissioner is given authority to exempt certain classes of insurance from the requirements of 631.36 or 632.32, Stats. The commissioner has previously exercised this authority in adopting and amending Ins 6.77, Wis. Admin. Code.
4. Related Statutes or rules: Ins 6.77, Wisc. Admin. Code
5. The plain language analysis and summary of the proposed rule:
This rule would remove the requirement that umbrella and commercial policies give notice of the availability of underinsured motorists coverage. The obligation to give this notice would rest solely with the insurer writing the auto coverage.
In addition, the current exemption from the requirement to offer uninsured motorists for umbrella policies would be expanded to include commercial liability policies.
6. Summary of and comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule: None.
7. Comparison of similar rules in adjacent states:
Illinois: 215 ILCS 5/143a In Hartbarger v. Country Mut. Ins. Co., 107 Ill. App. 3d 391, it was found that this section was enacted to insure a minimum amount of uninsured motorist protection, but did not give the authority to rewrite unambiguous provisions of an umbrella policy in order to expand the maximum coverage afforded plaintiff.
Iowa: Iowa Code § 321A.21 Primary insurance is purchased to be the first tier of insurance coverage while an umbrella policy is intended to cover only catastrophic losses that exceed the insured's required primary insurance limit. "Umbrella" policies are not included under Iowa Code § 321A.21, the financial responsibility statute. Jalas v. State Farm Fire & Cas. Co.,
505 N.W.2d 811, 1993 Iowa Sup. LEXIS 211 (Iowa 1993).
Michigan: Sec. 257.520(a) Michigan is a no-fault state and thus is not comparable to Wisconsin. Michigan defines a “motor vehicle liability policy" as an owner's or an operator's policy of liability insurance which would appear to not include an umbrella policy.
Minnesota: 65B.49 Minnesota is a no-fault state and thus is not comparable to Wisconsin. Uninsured and underinsured coverage is required in auto policies.
8. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:
OCI review of complaints, NAIC models, insurer's financial information
9. Any analysis and supporting documentation that OCI used in support of OCI's determination of the rule's effect on small businesses under s.
227.114:
The change will continue the existing practice used by insurers issuing umbrella and commercial policies. As such, it will have no impact.
10. If these changes may have a significant fiscal effect on the private sector, the anticipated costs that will be incurred by private sector in complying with the rule:
These changes will not have a significant fiscal effect on the private sector.
11. A description of the Effect on Small Business:
This rule will have little or no effect on small businesses.
12. Agency contact person:
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI WEB sites at:
http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, OCI Services Section, at:
Phone: (608) 264-8110
Address: 125 South Webster St – 2nd Floor
Madison WI 53702
Mail: PO Box 7873, Madison WI 53707-7873
13. Place where comments are to be submitted:
Mailing address:
Robert Luck, Legal Unit
OCI Rule Comment for Rule Ins 6
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Street address:
Robert Luck, Legal Unit
OCI Rule Comment for Rule Ins 6
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53702
Email address:
Fiscal Estimate
There will be no state or local government fiscal effect. The full text of the proposed changes, a summary of the changes and the fiscal estimate are attached to this Notice of Hearing.
Initial Regulatory Flexibility Analysis
This rule does not impose any additional requirements on small businesses.
The OCI small business coordinator is Eileen Mallow and may be reached at phone number (608) 266- 7843 or at email address:
Eileen.Mallow@oci.state.wi.us
Contact Person
A copy of the full text of the proposed rule changes, analysis and fiscal estimate may be obtained from the OCI internet WEB site at
http://oci.wi.gov/ocirules.htm or by contacting Inger Williams, Services Section, OCI, at:
Inger.Williams@OCI.State.WI.US, (608) 264-8110, 125 South Webster Street – 2
nd Floor, Madison WI or PO Box 7873, Madison WI 53707-7873.
Notice of Hearing
Insurance
Notice is hereby given that pursuant to the authority granted under s.
601.41 (3), Stats., and the procedures set forth in under s.
227.18, Stats., OCI will hold a public hearing to consider the adoption of the attached proposed rulemaking order affecting Section
Ins 9.25 (8), Wis. Adm. Code, relating to preferred provider plan limited exemption. This hearing will also be held in compliance with s.
227.24 (4) as this proposed rule was issued as an emergency rule.
Hearing Information
Date: December 12, 2006
Time: 10:00 a.m., or as soon thereafter as the matter may be reached
Place: OCI, Room 227, 125 South Webster St 2nd Floor, Madison, WI
Written comments can be mailed to:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 9258
Office of the Commissioner of Insurance
PO Box 7873
Madison WI 53707-7873
Written comments can be hand delivered to:
Julie E. Walsh
Legal Unit - OCI Rule Comment for Rule Ins 9258
Office of the Commissioner of Insurance
