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2007 - 2008 LEGISLATURE
December 7, 2007 - Introduced by Senators Carpenter and Lehman, cosponsored
by Representatives Cullen, Young, Grigsby, Steinbrink and A. Williams.
Referred to Committee on Health, Human Services, Insurance, and Job
Creation.
SB348,1,3
1An Act to renumber 632.365;
to amend 632.365 (title); and
to create 632.365
2(1) (title), 632.365 (2) and 632.365 (3) of the statutes;
relating to: factors for
3setting premium rates for motor vehicle insurance.
Analysis by the Legislative Reference Bureau
Current law specifies general criteria on which insurance rates may be based,
such as past and prospective loss and expense experience. In addition, current law
specifies that, for the purpose of establishing rates, risks may be classified in any
reasonable way, except that classifications may not be based on race, color, creed, or
national origin and classifications in automobile insurance may not be based on
physical condition or developmental disability. Current law also provides that an
insurer may not use odometer reading data collected in the course of an inspection
as a factor in setting automobile insurance rates.
This bill additionally prohibits an insurer, when setting rates for automobile
insurance, from using as a factor the zip code of the residence of an insured. The bill
provides that an insurer may use as factors when setting automobile insurance
premium rates the driving record of any insured, the length of time that any insured
has been driving, and the number of miles that the insured vehicle is driven in a year.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB348, s. 1
1Section
1. 632.365 (title) of the statutes is amended to read:
SB348,2,2
2632.365 (title)
Use of emission inspection data Factors in setting rates.
SB348, s. 2
3Section
2. 632.365 of the statutes is renumbered 632.365 (1).
SB348, s. 3
4Section
3. 632.365 (1) (title) of the statutes is created to read:
SB348,2,55
632.365
(1) (title)
Emission inspection data.
SB348, s. 4
6Section
4. 632.365 (2) of the statutes is created to read:
SB348,2,107
632.365
(2) Zip codes. An insurer may not use as a factor in setting rates or
8premiums for a motor vehicle liability insurance policy, or as a factor in altering rates
9or premiums during the term or at renewal of such a policy, the zip code of the
10residence of any insured under the policy.
SB348, s. 5
11Section
5. 632.365 (3) of the statutes is created to read:
SB348,2,1412
632.365
(3) Permitted factors. An insurer may use as a factor in setting rates
13or premiums for a motor vehicle liability insurance policy, or as a factor in altering
14rates or premiums during the term or at renewal of such a policy, any of the following:
SB348,2,1515
(a) The driving record of any insured under the policy.
SB348,2,1616
(b) The length of time that any insured under the policy has been driving.
SB348,2,1817
(c) The number of miles that the insured motor vehicle is driven or expected to
18be driven in a year.
SB348,2,2120
(1) This act first applies to motor vehicle insurance policies issued or renewed
21on the effective date of this subsection.
