b. Excludes umbrella and excess liability policies from the uninsured,
underinsured, and medical payments coverage requirements that apply to motor
vehicle insurance policies. Insurers are still required to affirmatively offer
uninsured and underinsured coverages under umbrella and excess liability policies,
however.
c. Clarifies that only one named insured is required to reject or request
uninsured or underinsured coverage for an umbrella or excess liability policy and
that one named insured's rejection of or request for the coverage applies to all persons
insured under the policy.
d. Generally, excludes from the definitions of uninsured and underinsured
motor vehicles, motor vehicles that are owned by a governmental entity; excludes
from the definition of an uninsured motor vehicle, in addition to one that is owned
or operated by a person who has furnished proof of financial responsibility, one that
is owned or operated by a person who is self-insured under any other applicable
motor vehicle law; and includes in the definition of an underinsured motor vehicle,
one that is owned or operated by a person who has furnished proof of financial

responsibility or who is self-insured under any other applicable motor vehicle law
but with limits that are less than needed to compensate the insured for his or her
damages.
For further information see the state 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:
AB701, s. 1 1Section 1. 14.83 of the statutes is repealed.
AB701, s. 2 2Section 2. 49.45 (31) (e) of the statutes is created to read:
AB701,5,93 49.45 (31) (e) 1. Notwithstanding par. (b) (intro.), the department, when
4making a determination under par. (a) 1. or 2. with respect to an individual, shall
5disregard an amount equal to the insurance benefit payments that are made to or
6on behalf of the individual under a qualified long-term care insurance policy under
726 USC 7702B (b) that was purchased in a state that had a state plan amendment
8that provided for a qualified state long-term care partnership, as defined in 42 USC
91396p
(b) (1) (C) (iii), at the time of the purchase of the policy.
AB701,5,1210 2. The department shall comply with standards established by the federal
11department of health and human services in accordance with section 6021 (b) of the
12federal Deficit Reduction Act of 2005.
AB701, s. 3 13Section 3. 149.13 (1) of the statutes is amended to read:
AB701,6,214 149.13 (1) Every insurer shall participate in the cost of administering the plan,
15except the commissioner may by rule exempt as a class those insurers whose share
16as determined under sub. (2) would be so minimal as to not exceed the estimated cost
17of levying the assessment
, at the request of an insurer and after holding a public
18hearing, exempt an insurer from participating in the cost of administering the plan
.

1The commissioner shall advise the authority of the insurers participating in the cost
2of administering the plan.
AB701, s. 4 3Section 4. 601.31 (1) (Lg) of the statutes is created to read:
AB701,6,64 601.31 (1) (Lg) For filing an original electronic resident intermediary license
5application following successful completion of any required prelicensing education
6or examination under s. 628.04, $10.
AB701, s. 5 7Section 5. 601.415 (11) of the statutes is repealed.
AB701, s. 6 8Section 6. 601.59 of the statutes is repealed.
AB701, s. 7 9Section 7. 609.91 (1) (intro.) of the statutes is amended to read:
AB701,6,1410 609.91 (1) Immunity of enrollees and policyholders. (intro.) Except as
11provided in sub. (1m) or (1p), an enrollee or policyholder of a health maintenance
12organization insurer is not liable for health care costs that are incurred on or after
13January 1, 1990, and that are covered under a policy or certificate issued by the
14health maintenance organization insurer, if any of the following applies:
AB701, s. 8 15Section 8. 609.91 (1p) of the statutes is created to read:
AB701,6,2116 609.91 (1p) Immunity for certain medicare recipients. An enrollee,
17policyholder, or insured under a policy issued by an insurer under Part C of Medicare
18under 42 USC 1395w-21 to 1395w-28 or Part D of Medicare under 42 USC
191395w-101
to 1395w-152 to provide prepaid health care, fee-for-service health
20care, or drug benefits to enrollees of Part C or Part D of Medicare is not liable for
21health care costs that are covered under the policy.
AB701, s. 9 22Section 9. 609.91 (2), (3) and (4) (a), (b), (cm) and (d) of the statutes are
23amended to read:
AB701,7,424 609.91 (2) Prohibited recovery attempts. No person may bill, charge, collect
25a deposit from, seek remuneration or compensation from, file or threaten to file with

1a credit reporting agency or have any recourse against an enrollee, policyholder or
2insured, or any person acting on their behalf, for health care costs for which the
3enrollee, policyholder or insured, or person acting on their behalf, is not liable under
4sub. (1) or, (1m), or (1p).
AB701,7,8 5(3) Deductibles, copayments and premiums. Subsections (1) to (2) do not affect
6the liability of an enrollee, policyholder or insured for any deductibles, copayments
7or premiums owed under the policy or certificate issued by the health maintenance
8organization insurer or by the insurer described in sub. (1m) or (1p).
AB701,7,14 9(4) (a) An agreement, other than a notice of election or termination of election
10in accordance with s. 609.92 or 609.925, entered into by the provider, the health
11maintenance organization insurer, the insurer described in sub. (1m) or (1p) or any
12other person, at any time, whether oral or written and whether implied or explicit,
13including an agreement that purports to hold the enrollee, policyholder or insured
14liable for health care costs.
AB701,7,1915 (b) A breach of or default on an agreement by the health maintenance
16organization insurer, the insurer described in sub. (1m) or (1p) or any other person
17to compensate the provider, directly or indirectly, for health care costs, including
18health care costs for which the enrollee, policyholder or insured is not liable under
19sub. (1) or, (1m), or (1p).
AB701,8,220 (cm) The insolvency of the insurer described in sub. (1m) or (1p) or any person
21contracting with the insurer or provider, or the commencement or the existence of
22conditions permitting the commencement of insolvency, delinquency or bankruptcy
23proceedings involving the insurer or other person, including delinquency
24proceedings, as defined in s. 645.03 (1) (b), under ch. 645, despite whether the insurer
25or other person has agreed to compensate, directly or indirectly, the provider for

1health care costs for which the enrollee, policyholder or insured is not liable under
2sub. (1m) or (1p).
AB701,8,73 (d) The inability of the provider or other person who is owed compensation for
4health care costs to obtain compensation from the health maintenance organization
5insurer, the insurer described in sub. (1m) or (1p), or any other person for health care
6costs for which the enrollee, policyholder or insured is not liable under sub. (1) or,
7(1m), or (1p).
AB701, s. 10 8Section 10. 611.33 (2) (b) 1. of the statutes is repealed.
AB701, s. 11 9Section 11. 611.33 (2) (b) 2. of the statutes is repealed.
AB701, s. 12 10Section 12. 612.22 (3) (a), (4) and (6) of the statutes are amended to read:
AB701,8,2011 612.22 (3) (a) Each of the participating corporations shall file with the
12commissioner for approval a copy of the resolution and any explanatory material
13proposed to be issued to the members who have the right to vote on the merger under
14sub. (4)
, together with so much of the information under s. 611.13 (2) or 612.02 (4),
15whichever is appropriate, for the surviving or new corporation as the commissioner
16reasonably requires. The commissioner shall approve the plan unless he or she finds,
17after a hearing, that it would be contrary to the law, or that the surviving or new
18corporation would not satisfy the requirements for a certificate of authority under
19s. 611.20 or 612.02 (6), whichever is appropriate, or that the plan would be contrary
20to the interest of insureds or of the public.
AB701,9,2 21(4) Approval by members of the mutuals. After being approved by the
22commissioner under sub. (3), the plan shall be submitted for approval to the
23members of the participating town mutual or mutuals for their approval and to the
24members of the participating domestic mutual if the domestic mutual is assessable
.

1The members of each participating mutual who have the right to vote on the merger
2shall vote separately.
AB701,9,7 3(6) Reports to commissioner. Each participating mutual, the members of
4which have the right to vote under sub. (4),
shall file with the commissioner a copy
5of the resolution adopted under sub. (4), stating the number of members entitled to
6vote, the number of members voting, and the number of votes cast in favor of the plan,
7stating separately in each case the mail votes and the votes cast in person.
AB701, s. 13 8Section 13. 614.29 (1) of the statutes is amended to read:
AB701,9,159 614.29 (1) Right to amend articles. The articles of a fraternal may provide for
10amendment by the supreme governing body or by the board of directors, and may
11provide also for amendment by the members by referendum. If amendment is by
12referendum, a majority of those members who vote must vote affirmatively. Votes
13cast within 60 days from the date of mailing of the first ballot ballots by the fraternal
14shall be counted. The timeliness of a vote is determined by the date of its mailing
15as proved by its postmark or other suitable evidence.
AB701, s. 14 16Section 14. 614.42 (1) (a) of the statutes is amended to read:
AB701,9,2417 614.42 (1) (a) Board of directors. A board with some directors elected directly
18by the members or by their representatives in intermediate assemblies under sub.
19(2), and other directors prescribed in the fraternal's laws. The elected directors shall
20constitute a majority in number and not less than the number of votes required to
21amend those articles or bylaws of the fraternal that can be amended without consent
22of the members. The board shall meet at least quarterly to conduct the business of
23the fraternal. The elected directors shall be elected on a plan that ensures equal
24weight to each fraternal member's vote. Voting may be conducted by mail, by

1electronic means, or by any other method or combination of methods approved by the
2board and prescribed in the fraternal's bylaws
.
AB701, s. 15 3Section 15. 615.03 (5) of the statutes is amended to read:
AB701,10,84 615.03 (5) Application of chapters 600 to 646. The commissioner may by rule
5or order impose on licensees under this chapter any other provisions of chs. 600 to
6646 applicable to ch. 611 corporations, if necessary to protect the interests of
7annuitants or the public, except that the commissioner may not impose the
8provisions of s. 620.23 (1) (d), (2) (a), and (5) on a licensee under this chapter
.
AB701, s. 16 9Section 16. 615.10 (5) (intro.) of the statutes is created to read:
AB701,10,1110 615.10 (5) (intro.) All of the following apply to the investment of the assets of
11a segregated account under this section:
AB701, s. 17 12Section 17. 615.10 (5) of the statutes, as affected by 2009 Wisconsin Act 33,
13is renumbered 615.10 (5) (a) and amended to read:
AB701,10,1514 615.10 (5) (a) Assets of a segregated account under this section shall be
15invested in accordance with ch. 881.
AB701, s. 18 16Section 18. 615.10 (5) (b) of the statutes is created to read:
AB701,10,1817 615.10 (5) (b) No more than 50 percent of the assets may be invested in common
18stock.
AB701, s. 19 19Section 19. 615.10 (5) (c) of the statutes is created to read:
AB701,10,2120 615.10 (5) (c) No more than 10 percent of the assets may be invested in the
21common stock of any single corporation and its affiliates.
AB701, s. 20 22Section 20. 615.10 (5) (d) of the statutes is created to read:
AB701,11,223 615.10 (5) (d) Assets that are invested in a mutual fund or other investment
24company shall be treated as if the licensee directly owned, in proportion to the

1amount invested, the same types of assets and in the same proportional share as the
2assets owned by the mutual fund or other investment company.
AB701, s. 21 3Section 21. 628.10 (5) (a) of the statutes is amended to read:
AB701,11,164 628.10 (5) (a) Reinstatement within 12 months. An intermediary who is a
5natural person and whose license is revoked under sub. (2) (a), (am), or (cm) may have
6his or her license reinstated within 12 months after the date on which the license was
7revoked without having to satisfy any prelicensing education or examination
8requirements under s. 628.04. To have his or her license reinstated, the intermediary
9must satisfy the requirement under sub. (2) (a), (am), or (cm) for which the license
10was revoked, satisfactorily complete a reinstatement application, and pay the
11application fee for original licensure
twice the amount of the license renewal fee as
12specified by rule. The reinstatement is effective on the date on which the
13commissioner actually reinstates the license. If the intermediary is also a resident
14who is required to complete continuing education, the intermediary must have
15satisfied all previous continuing education requirements to have his or her license
16reinstated under this paragraph.
AB701, s. 22 17Section 22. 632.32 (2) (ag) of the statutes is created to read:
AB701,11,1818 632.32 (2) (ag) "Governmental unit" has the meaning given in s. 50.33 (1r).
AB701, s. 23 19Section 23. 632.32 (2) (at) of the statutes, as affected by 2009 Wisconsin Act
2028
, is amended to read:
AB701,12,221 632.32 (2) (at) "Motor vehicle" means a self-propelled land motor vehicle
22designed for travel on public roads and subject to motor vehicle registration under
23ch. 341. It includes trailers and semitrailers A trailer or semitrailer that is designed
24for use with such vehicles. It and connected to a motor vehicle shall be considered

1a single unit with the motor vehicle. "Motor vehicle"
does not include farm tractors,
2well drillers, road machinery, or snowmobiles.
AB701, s. 24 3Section 24. 632.32 (2) (be) of the statutes is created to read:
AB701,12,54 632.32 (2) (be) "Owned motor vehicle" means a motor vehicle that is owned by
5the insured or that is leased by the insured for a term of 6 months or longer.
AB701, s. 25 6Section 25. 632.32 (2) (e) (intro.) of the statutes, as created by 2009 Wisconsin
7Act 28
, is amended to read:
AB701,12,108 632.32 (2) (e) (intro.) "Underinsured motor vehicle" means a motor vehicle,
9other than a motor vehicle owned by a governmental unit,
to which all of the
10following apply:
AB701, s. 26 11Section 26. 632.32 (2) (e) 2. of the statutes, as created by 2009 Wisconsin Act
1228
, is amended to read:
AB701,12,1713 632.32 (2) (e) 2. A At the time of the accident, a bodily injury liability insurance
14policy applies to the motor vehicle at the time of the accident or the owner or operator
15of the motor vehicle has furnished proof of financial responsibility for the future
16under subch. III of ch. 344 and it is in effect or is a self-insurer under another
17applicable motor vehicle law
.
AB701, s. 27 18Section 27. 632.32 (2) (e) 3. of the statutes, as created by 2009 Wisconsin Act
1928
, is amended to read:
AB701,12,2220 632.32 (2) (e) 3. The limits under the bodily injury liability insurance policy or
21with respect to the proof of financial responsibility or self-insurance
are less than
22the amount needed to fully compensate the insured for his or her damages.
AB701, s. 28 23Section 28. 632.32 (2) (g) (intro.) of the statutes, as created by 2009 Wisconsin
24Act 28
, is amended to read:
AB701,13,9
1632.32 (2) (g) (intro.) "Uninsured motor vehicle" means a motor vehicle, other
2than a motor vehicle owned by a governmental unit,
that is involved in an accident
3with a person who has uninsured motorist coverage and with respect to which, at the
4time of the accident, a bodily injury liability insurance policy is not in effect and the
5owner or operator has not furnished proof of financial responsibility for the future
6under subch. III of ch. 344 and is not a self-insurer under any other applicable motor
7vehicle law
. "Uninsured motor vehicle" also includes any of the following motor
8vehicles, other than a motor vehicle owned by governmental unit, involved in an
9accident with a person who has uninsured motorist coverage:
AB701, s. 29 10Section 29. 632.32 (2) (g) 1. of the statutes, as created by 2009 Wisconsin Act
1128
, is amended to read:
AB701,13,1512 632.32 (2) (g) 1. An insured motor vehicle, or a motor vehicle with respect to
13which the owner or operator is a self-insurer under any applicable motor vehicle law,

14if before or after the accident the liability insurer of the motor vehicle, or the
15self-insurer,
is declared insolvent by a court of competent jurisdiction.
AB701, s. 30 16Section 30. 632.32 (4) (a) (intro.) of the statutes, as affected by 2009 Wisconsin
17Act 28
, is amended to read:
AB701,13,2318 632.32 (4) (a) (intro.) Every Except as provided in par. (d), every policy of
19insurance subject to this section that insures with respect to any owned motor vehicle
20registered or principally garaged in this state against loss resulting from liability
21imposed by law for bodily injury or death suffered by any person arising out of the
22ownership, maintenance, or use of a motor vehicle shall contain therein or
23supplemental thereto provisions for all of the following coverages:
AB701, s. 31 24Section 31. 632.32 (4) (d) of the statutes is created to read:
AB701,14,2
1632.32 (4) (d) This subsection does not apply to umbrella or excess liability
2policies, which are subject to sub. (4r).
AB701, s. 32 3Section 32. 632.32 (4r) (a) of the statutes, as created by 2009 Wisconsin Act
428
, is amended to read:
AB701,14,135 632.32 (4r) (a) An insurer writing umbrella or excess liability policies that
6insure with respect to a an owned motor vehicle registered or principally garaged
7in this state against loss resulting from liability imposed by law for bodily injury or
8death suffered by a person arising out of the ownership, maintenance, or use of a
9motor vehicle shall provide written offers of uninsured motorist coverage and
10underinsured motorist coverage, which offers shall include a brief description of the
11coverage offered. An insurer is required to provide the offers required under this
12subsection only one time with respect to any policy in the manner provided in par.
13(b).
AB701, s. 33 14Section 33. 632.32 (4r) (c) of the statutes, as created by 2009 Wisconsin Act
1528
, is amended to read:
AB701,14,2216 632.32 (4r) (c) An applicant or a named insureds insured may reject one or both
17of the coverages offered, but must do so in writing. If the applicant or named insureds
18reject
insured rejects either of the coverages offered, the insurer is not required to
19provide the rejected coverage under a the policy that is renewed to the person at
20renewal
by that insurer unless an insured under the policy subsequently requests
21the rejected coverage in writing. The action of one named insured to reject or request
22coverage applies to all persons insured under the policy.
AB701, s. 34 23Section 34. 632.897 (11) of the statutes is created to read:
AB701,15,724 632.897 (11) (a) Notwithstanding subs. (2) to (10), the commissioner may
25promulgate rules establishing standards requiring insurers to provide continuation

1of coverage for any individual covered at any time under a group policy who is a
2terminated insured or an eligible individual under any federal program that
3provides for a federal premium subsidy for individuals covered under continuation
4of coverage under a group policy, including rules governing election or extension of
5election periods, notice, rates, premiums, premium payment, application of
6preexisting condition exclusions, election of alternative coverage, and status as an
7eligible individual, as defined in s. 149.10 (2t).
AB701,15,15 8(b) The commissioner may promulgate the rules under par. (a) as emergency
9rules under s. 227.24. Notwithstanding s. 227.24 (1) (c), emergency rules
10promulgated under this paragraph may remain in effect for one year and may be
11extended under s. 227.24 (2). Notwithstanding s. 227.24 (1) (a) and (3), the
12commissioner is not required to provide evidence that promulgating a rule under this
13paragraph as an emergency rule is necessary for the preservation of the public peace,
14health, safety, or welfare and is not required to provide a finding of emergency for a
15rule promulgated under this paragraph.
AB701, s. 35 16Section 35. 645.69 (1) of the statutes is amended to read:
AB701,15,2117 645.69 (1) A claim against a health maintenance organization insurer or an
18insurer described in s. 609.91 (1m) or (1p) for health care costs, as defined in s. 609.01
19(1j), for which an enrollee, as defined in s. 609.01 (1d), policyholder or insured of the
20health maintenance organization insurer or other insurer is not liable under ss.
21609.91 to 609.935.
AB701, s. 36 22Section 36. 646.01 (1) (b) 19. of the statutes is created to read:
AB701,16,323 646.01 (1) (b) 19. A policy issued by an insurer to an enrollee under Title XVIII
24of the federal social security act, 42 USC 1395 to 1395ccc, or Title XIX of the federal
25social security act, 42 USC 1396 to 1396v, or a contract entered into by an insurer

1with the federal government or an agency of the federal government under Title
2XVIII or Title XIX of the federal social security act, to provide health care or
3prescription drug benefits to persons enrolled in Title XVIII or Title XIX programs.
AB701, s. 37 4Section 37. 646.03 (2n) of the statutes is repealed.
AB701, s. 38 5Section 38. 646.13 (2) (d) of the statutes is amended to read:
AB701,16,156 646.13 (2) (d) Have standing to appear in any liquidation proceedings in this
7state involving an insurer in liquidation, and have authority to appear or intervene
8before a court or agency of any other state having jurisdiction over an impaired or
9insolvent insurer, in accordance with the laws of that state, with respect to which the
10fund is or may become obligated or that has jurisdiction over any person or property
11against which the fund may have subrogation or other rights. Standing shall extend
12to all matters germane to the powers and duties of the fund, including proposals for
13reinsuring, modifying, or guaranteeing the policies or contracts of the impaired or
14insolvent insurer and the determination of the policies or contracts and contractual
15obligations.
AB701, s. 39 16Section 39. 646.13 (4) of the statutes is amended to read:
AB701,16,2117 646.13 (4) When duty to defend terminates. Any obligation of the fund to
18defend an insured ceases upon the fund's payment, by settlement releasing the
19insured
or on a judgment, of an amount equal to the lesser of the fund's covered claim
20obligation limit or the applicable policy limit, subject to any express policy terms
21regarding tender of limits.
AB701, s. 40 22Section 40. 646.31 (1) (b) of the statutes is renumbered 646.31 (1) (b) 1.
AB701, s. 41 23Section 41. 646.31 (1) (b) 2. of the statutes is created to read:
Loading...
Loading...