Miscellaneous motor vehicle insurance provisions
This bill makes a number of changes to the current law provisions that relate
to motor vehicle insurance policies and umbrella and excess liability policies,
including the following:
1. Current law, as a result of provisions in the 2009-11 biennial budget act
(budget act), makes a number of formerly permissible provisions prohibited in a
motor vehicle liability insurance policy. The bill restores some of former law by
making the following provisions permissible in a motor vehicle liability insurance
policy:
a. Providing that, regardless of the number of policies, persons, or vehicles
involved, the limits for any coverage under the policy may not be added to the limits
for similar coverage applying to other motor vehicles to determine an overall limit
of coverage available for a person in any one accident.
b. Providing that the maximum amount of uninsured or underinsured motorist
coverage available for bodily injury or death suffered by a person not using a motor
vehicle in an accident (such as a pedestrian) is the highest single limit of uninsured
or underinsured motorist coverage for any vehicle with respect to which the person
is insured at the time of the accident.
c. Providing that the maximum amount of medical payments coverage
available for bodily injury or death suffered by a person not using a motor vehicle in

an accident is the highest single limit of medical payments coverage for any vehicle
with respect to which the person is insured at the time of the accident.
2. Uninsured motorist coverage provides coverage for persons who are legally
entitled to recover damages for bodily injury from owners or operators of motor
vehicles that are not insured. Medical payments coverage pays for medical or
chiropractic services provided to persons who are injured while using the insured
motor vehicle. Under former law, all motor vehicle liability insurance policies were
required to include uninsured motorist coverage in limits of at least $25,000 per
person and $50,000 per accident and medical payments coverage in the amount of
at least $1,000 per person. As a result of provisions in the budget act, the level of
uninsured motorist coverage that motor vehicle liability insurance policies, except
for those written by town mutuals, must include is increased to $100,000 per person
and $300,000 per accident and the level of medical payments coverage that those
policies must include is increased to $10,000 per person. The bill reduces the
minimum required limits for uninsured motorist coverage to $50,000 per person and
$100,000 per accident and eliminates any minimum required limit for medical
payments coverage.
3. Underinsured motorist coverage provides coverage for persons who are
legally entitled to recover damages for bodily injury from owners or operators of
underinsured motor vehicles. Former law did not require motor vehicle liability
insurance policies to include underinsured motorist coverage but required insurers
to provide written notice of the availability of that coverage. If an insured accepted
underinsured motorist coverage after receiving notice of its availability, the policy
had to include the coverage in limits of at least $50,000 per person and $100,000 per
accident. Current law, as a result of provisions in the budget act, requires every
motor vehicle liability insurance policy, except for those written by town mutuals, to
include underinsured motorist coverage coverage in limits of at least $100,000 per
person and $300,000 per accident. The bill allows an insured to reject underinsured
motorist coverage, which is the case under both former and current law for medical
payments coverage.
4. Current law defines an underinsured motor vehicle as a motor vehicle that
is involved in an accident with an insured and which, at the time of the accident, was
covered by a motor vehicle liability insurance policy with limits that are less than the
amount needed to fully compensate the insured for his or her damages. The bill
defines an underinsured motor vehicle as one that is involved in an accident with an
insured person who has underinsured motorist coverage and which vehicle, at the
time of an accident, was covered by a motor vehicle liability insurance policy with
limits that are less than the limits of that insured person's underinsured motorist
coverage. The definition also includes a motor vehicle 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 the
limits of the insured person's underinsured motorist coverage.
5. Under current law, an uninsured motor vehicle includes an unidentified
motor vehicle involved in a hit-and-run accident with the insured person. The bill
specifies that an unidentified motor vehicle involved in a hit-and-run accident with

the insured person is an uninsured motor vehicle if the vehicle makes contact with
the insured person or the vehicle that the insured person is occupying.
6. Current law, as a result of provisions in the budget act, requires an insurer,
except for a town mutual, that writes umbrella or excess liability policies that cover
motor vehicle liability to make a written offer of both uninsured motorist coverage
and underinsured motorist coverage whenever application is made for such an
umbrella or excess liability policy. An applicant or insured may reject the coverage,
but must do so in writing. If an insurer fails to provide a required written offer of
uninsured or underinsured motorist coverage and the umbrella or excess liability
policy does not include the coverage, or coverages, for which an offer was not given,
a court must, on the request of the insured, reform the policy to include the coverage
or coverages with the same limits as the liability coverage limits under the policy.
The bill eliminates the requirement that an insurer writing an umbrella or excess
liability policy make a written offer of uninsured motorist coverage and
underinsured motorist coverage. In addition, the bill explicitly excludes umbrella
and excess liability policies from the requirements that apply to motor vehicle
insurance policies with respect to uninsured, underinsured, and medical payments
coverage.
7. Current law, as a result of provisions in the budget act, prohibits an insurer
from placing an applicant for insurance in a high-risk category on the basis that the
applicant has not previously had motor vehicle insurance. The bill provides that this
does not apply to a person who applies for motor vehicle insurance on or after
January 1, 2011, and who, at the time of application, is in violation of the
requirement beginning June 1, 2010, to have motor vehicle liability insurance as a
condition for operating a motor vehicle.
8. Under current law, an insurer must provide at least 60 days' notice to an
insured if the insured's policy will be renewed with increased premiums. The bill
provides that this does not apply if the premium increase results from a statutory or
regulatory change or a change based on case law.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB646, s. 1 1Section 1. 227.01 (13) (zz) of the statutes, as created by 2009 Wisconsin Act
228
, is repealed.
SB646, s. 2 3Section 2. 344.01 (2) (am) 5. of the statutes, as created by 2009 Wisconsin Act
428
, is repealed.
SB646, s. 3 5Section 3. 344.11 of the statutes, as created by 2009 Wisconsin Act 28, is
6repealed.
SB646, s. 4
1Section 4. 631.36 (5) (b) (intro.) of the statutes is amended to read:
SB646,5,42 631.36 (5) (b) Exception. (intro.) Paragraph (a) does not apply if the only
3change that is adverse to the policyholder is a premium increase and if either any of
4the following applies to the premium increase:
SB646, s. 5 5Section 5. 631.36 (5) (b) 3. of the statutes is created to read:
SB646,5,76 631.36 (5) (b) 3. The premium increase results from a statutory or regulatory
7change or a change based on case law.
SB646, s. 6 8Section 6. 631.43 (3) of the statutes, as affected by 2009 Wisconsin Act 28, is
9amended to read:
SB646,5,1110 631.43 (3) Exception. Subsection (1) does not affect the rights of insurers to
11exclude, limit, or restrict coverage under s. 632.32 (5) (b) or, (c), or (f) to (j).
SB646, s. 7 12Section 7. 632.32 (1) of the statutes is amended to read:
SB646,5,1613 632.32 (1) Scope. Except as otherwise provided, this section applies to every
14motor vehicle liability policy of insurance issued or delivered in this state against the
15insured's liability for loss or damage resulting from accident caused by any motor
16vehicle, whether the loss or damage is to property or to a person.
SB646, s. 8 17Section 8. 632.32 (2) (bc) of the statutes is created to read:
SB646,5,1918 632.32 (2) (bc) "Motor vehicle liability policy" has the meaning given in s.
19344.61 (2).
SB646, s. 9 20Section 9. 632.32 (2) (cm) of the statutes, as created by 2009 Wisconsin Act 28,
21is amended to read:
SB646,5,2522 632.32 (2) (cm) "Umbrella or excess liability policy" means an insurance
23contract providing at least $1,000,000 of liability coverage per person or per
24occurrence in excess of certain required underlying motor vehicle liability insurance
25policy coverage or a specified amount of self-insured retention.
SB646, s. 10
1Section 10. 632.32 (2) (e) 2. of the statutes, as created by 2009 Wisconsin Act
228
, is amended to read:
SB646,6,73 632.32 (2) (e) 2. A At the time of the accident, a bodily injury liability insurance
4policy applies to the motor vehicle at the time of the accident or the owner or operator
5of the motor vehicle has furnished proof of financial responsibility for the future
6under subch. III of ch. 344 and it is in effect or is a self-insurer under another
7applicable motor vehicle law
.
SB646, s. 11 8Section 11. 632.32 (2) (e) 3. of the statutes, as created by 2009 Wisconsin Act
928
, is amended to read:
SB646,6,1310 632.32 (2) (e) 3. The limits under the bodily injury liability insurance policy or
11with respect to the proof of financial responsibility or self-insurance
are less than
12the amount needed to fully compensate the insured for his or her damages limits of
13the person's underinsured motorist coverage under subd. 1
.
SB646, s. 12 14Section 12. 632.32 (2) (g) 3. of the statutes, as created by 2009 Wisconsin Act
1528
, is amended to read:
SB646,6,1816 632.32 (2) (g) 3. An unidentified motor vehicle involved in a hit-and-run
17accident with the person that makes contact, in the accident, with the person or the
18vehicle that the person is occupying
.
SB646, s. 13 19Section 13. 632.32 (4) (a) (intro.) of the statutes, as affected by 2009 Wisconsin
20Act 28
, is amended to read:
SB646,7,221 632.32 (4) (a) (intro.) Every Except as provided in par. (d), every motor vehicle
22liability
policy of insurance subject to this section that insures with respect to any
23motor vehicle registered or principally garaged in this state against loss resulting
24from liability imposed by law for bodily injury or death suffered by any person arising

1out of the ownership, maintenance, or use of a motor vehicle shall contain therein or
2supplemental thereto provisions for all of the following coverages:
SB646, s. 14 3Section 14. 632.32 (4) (a) 1. of the statutes, as affected by 2009 Wisconsin Act
428
, is amended to read:
SB646,7,75 632.32 (4) (a) 1. Excluding a policy written by a town mutual organized under
6ch. 612, uninsured motorist coverage, in limits of at least $100,000 $50,000 per
7person and $300,000 $100,000 per accident.
SB646, s. 15 8Section 15. 632.32 (4) (a) 3m. of the statutes, as affected by 2009 Wisconsin
9Act 28
, is amended to read:
SB646,7,1210 632.32 (4) (a) 3m. Medical payments coverage, in the amount of at least $10,000
11per person
. Coverage written under this subdivision may be excess coverage over
12any other source of reimbursement to which the insured person has a legal right.
SB646, s. 16 13Section 16. 632.32 (4) (bc) of the statutes, as created by 2009 Wisconsin Act
1428
, is amended to read:
SB646,7,1915 632.32 (4) (bc) Notwithstanding par. (a) 2m. and 3m., the named insured may
16reject underinsured motorist coverage or medical payments coverage. If the named
17insured rejects the coverage, the
or both. Any rejected coverage need not be provided
18in a subsequent renewal policy issued by the same insurer unless the insured
19requests it in writing.
SB646, s. 17 20Section 17. 632.32 (4) (d) of the statutes is created to read:
SB646,7,2221 632.32 (4) (d) This subsection does not apply to umbrella or excess liability
22policies.
SB646, s. 18 23Section 18. 632.32 (4r) of the statutes, as created by 2009 Wisconsin Act 28,
24is repealed.
SB646, s. 19
1Section 19. 632.32 (6) (d) of the statutes, as affected by 2009 Wisconsin Act 28,
2is renumbered 632.32 (5) (f) and amended to read:
SB646,8,103 632.32 (5) (f) No A policy may provide that, regardless of the number of policies
4involved, vehicles involved, persons covered, claims made, vehicles or premiums
5shown on the policy, or premiums paid, the limits for any uninsured motorist
6coverage or underinsured motorist
coverage under the policy may not be added to the
7limits for similar coverage applying to other motor vehicles to determine the limit of
8insurance coverage available for bodily injury or death suffered by a person in any
9one accident, except that a policy may limit the number of motor vehicles for which
10the limits for coverage may be added to 3 vehicles
.
SB646, s. 20 11Section 20. 632.32 (6) (e) of the statutes, as affected by 2009 Wisconsin Act 28,
12is renumbered 632.32 (5) (g) and amended to read:
SB646,8,1913 632.32 (5) (g) No A policy may provide that the maximum amount of uninsured
14motorist coverage or underinsured motorist coverage available for bodily injury or
15death suffered by a person who was not using a motor vehicle at the time of an
16accident is any the highest single limit of uninsured motorist coverage or
17underinsured motorist coverage, whichever is applicable, for any motor vehicle with
18respect to which the person is insured, except that a policy may limit the number of
19motor vehicles for which coverage limits may be added to 3 vehicles
.
SB646, s. 21 20Section 21. 632.32 (6) (f) of the statutes, as affected by 2009 Wisconsin Act 28,
21is renumbered 632.32 (5) (h) and amended to read:
SB646,9,222 632.32 (5) (h) No A policy may provide that the maximum amount of medical
23payments coverage available for bodily injury or death suffered by a person who was
24not using a motor vehicle at the time of an accident is any the highest single limit of
25medical payments coverage for any motor vehicle with respect to which the person

1is insured, except that a policy may limit the number of motor vehicles for which
2medical payments coverage limits may be added to 3 vehicles
.
SB646, s. 22 3Section 22. 632.355 (title) of the statutes, as created by 2009 Wisconsin Act
428
, is amended to read:
SB646,9,5 5632.355 (title) Prohibited bases basis for assessing risk.
SB646, s. 23 6Section 23. 632.355 (intro.) (except 632.355 (title)) and (1) of the statutes, as
7created by 2009 Wisconsin Act 28, are consolidated, renumbered 632.355 (1c) and
8amended to read:
SB646,9,129 632.355 (1c) In issuing or renewing a motor vehicle insurance policy, an insurer
10may not do any of the following: (1) Place place the applicant or insured in a
11high-risk category on the basis that the applicant or insured has not previously had
12motor vehicle insurance.
SB646, s. 24 13Section 24. 632.355 (2) of the statutes is created to read:
SB646,9,1614 632.355 (2) Subsection (1c) does not apply to a person who applies for a motor
15vehicle insurance policy on or after January 1, 2011, and who is in violation of s.
16344.62 at the time of application.
SB646, s. 25 17Section 25. Initial applicability.
SB646,9,2118 (1) Limits, required coverage, and policy provisions. The treatment of sections
19631.43 (3) and 632.32 (4) (a) 1. and 3m. and (bc), (4r), and (6) (d), (e), and (f) of the
20statutes first applies to motor vehicle insurance policies and umbrella and excess
21liability policies that are issued or renewed on the effective date of this subsection.
SB646,9,2422 (2) Renewal with increased premium. The treatment of section 631.36 (5) (b)
233. of the statutes first applies to policies that renewed on the first day of the 3rd
24month beginning after the effective date of this subsection.
SB646,10,6
1(3) Uninsured and underinsured motor vehicle definitions. If a motor vehicle
2insurance policy that is in effect on the effective date of this subsection contains a
3provision that is inconsistent with the treatment of section 632.32 (2) (e) 2. or 3. or
4(g) 3. or (4) (a) (intro.) or (d) of the statutes, the treatment of section 632.32 (2) (e) 2.
5or 3. or (g) 3. or (4) (a) (intro.) or (d) of the statutes, whichever is applicable, first
6applies to that motor vehicle insurance policy on the date on which it is renewed.
SB646,10,77 (End)
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