632.32(4)
(4) Required uninsured motorist and medical payments coverages. Every policy of insurance subject to this section that insures with respect to any motor vehicle registered or principally garaged in this state against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance or use of a motor vehicle shall contain therein or supplemental thereto provisions approved by the commissioner:
632.32(4)(a)1.1. For the protection of persons injured who are legally entitled to recover damages from owners or operators of uninsured motor vehicles because of bodily injury, sickness or disease, including death resulting therefrom, in limits of at least $25,000 per person and $50,000 per accident.
632.32(4)(a)2.
2. In this paragraph "uninsured motor vehicle" also includes:
632.32(4)(a)2.a.
a. An insured motor vehicle if before or after the accident the liability insurer of the motor vehicle is declared insolvent by a court of competent jurisdiction.
632.32(4)(a)2.b.
b. An unidentified motor vehicle involved in a hit-and-run accident.
632.32(4)(a)3.
3. Insurers making payment under the uninsured motorists' coverage shall, to the extent of the payment, be subrogated to the rights of their insureds.
632.32(4)(b)
(b)
Medical payments. To indemnify for medical payments or chiropractic payments or both in the amount of at least $1,000 per person for protection of all persons using the insured motor vehicle from losses resulting from bodily injury or death. The named insured may reject the coverage. If the named insured rejects the coverage, it need not be provided in a subsequent renewal policy issued by the same insurer unless the insured requests it in writing. Under the medical or chiropractic payments coverage, the insurer shall be subrogated to the rights of its insured to the extent of its payments. Coverage written under this paragraph may be excess coverage over any other source of reimbursement to which the insured person has a legal right.
632.32(4m)(a)1.1. An insurer writing policies that insure with respect to a motor vehicle registered or principally garaged in this state against loss resulting from liability imposed by law for bodily injury or death suffered by a person arising out of the ownership, maintenance or use of a motor vehicle shall provide to one insured under each such insurance policy that goes into effect after October 1, 1995, that is written by the insurer and that does not include underinsured motorist coverage written notice of the availability of underinsured motorist coverage, including a brief description of the coverage. An insurer is required to provide the notice required under this subdivision only one time and in conjunction with the delivery of the policy.
632.32(4m)(a)2.
2. An insurer under
subd. 1. shall provide to one insured under each insurance policy described in
subd. 1. that is in effect on October 1, 1995, that is written by the insurer and that does not include underinsured motorist coverage written notice of the availability of underinsured motorist coverage, including a brief description of the coverage. An insurer is required to provide the notice required under this subdivision only one time and in conjunction with the notice of the first renewal of each policy occurring after 120 days after October 1, 1995.
632.32(4m)(b)
(b) Acceptance or rejection of underinsured motorist coverage by a person after being notified under
par. (a) need not be in writing. The absence of a premium payment for underinsured motorist coverage is conclusive proof that the person has rejected such coverage. The rejection of such coverage by the person notified under
par. (a) shall apply to all persons insured under the policy, including any renewal of the policy.
632.32(4m)(c)
(c) If a person rejects underinsured motorist coverage after being notified under
par. (a), the insurer is not required to provide such coverage under a policy that is renewed to the person by that insurer unless an insured under the policy subsequently requests such underinsured motorist coverage in writing.
632.32(4m)(d)
(d) If an insured who is notified under
par. (a) 1. accepts underinsured motorist coverage, the insurer shall include the coverage under the policy just delivered to the insured in limits of at least $50,000 per person and $100,000 per accident. For any insured who accepts the coverage after notification under
par. (a) 2., the insurer shall include the coverage under the renewed policy in limits of at least $50,000 per person and $100,000 per accident.
632.32(5)(a)(a) A policy may limit coverage to use that is with the permission of the named insured or, if the insured is an individual, to use that is with the permission of the named insured or an adult member of that insured's household other than a chauffeur or domestic servant. The permission is effective even if it violates
s. 343.45 (2) and even if the use is not authorized by law.
632.32(5)(b)
(b) If the policy is issued to anyone other than a motor vehicle handler, it may limit the coverage afforded to a motor vehicle handler or its officers, agents or employes to the limits under
s. 344.01 (2) (d) and to instances when there is no other valid and collectible insurance with at least those limits whether the other insurance is primary, excess or contingent.
632.32(5)(c)
(c) If the policy is issued to a motor vehicle handler, it may restrict coverage afforded to anyone other than the motor vehicle handler or its officers, agents or employes to the limits under
s. 344.01 (2) (d) and to instances when there is no other valid and collectible insurance with at least those limits whether the other insurance is primary, excess or contingent.
632.32(5)(d)
(d) If a motor vehicle covered by the policy is sold or transferred, the purchaser or transferee is not an additional insured unless the consent of the insurer is endorsed on the policy.
632.32(5)(e)
(e) A policy may provide for exclusions not prohibited by
sub. (6) or other applicable law. Such exclusions are effective even if incidentally to their main purpose they exclude persons, uses or coverages that could not be directly excluded under
sub. (6) (b).
632.32(5)(f)
(f) A policy may provide that regardless of the number of policies involved, vehicles involved, persons covered, claims made, vehicles or premiums shown on the policy or premiums paid 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 the limit of insurance coverage available for bodily injury or death suffered by a person in any one accident.
632.32(5)(g)
(g) A policy may provide that the maximum amount of uninsured or underinsured motorist coverage available for bodily injury or death suffered by a person who was not using a motor vehicle at the time of an accident is the highest single limit of uninsured or underinsured motorist coverage, whichever is applicable, for any motor vehicle with respect to which the person is insured.
632.32(5)(h)
(h) A policy may provide that the maximum amount of medical payments coverage available for bodily injury or death suffered by a person who was not using a motor vehicle at the time of an accident is the highest single limit of medical payments coverage for any motor vehicle with respect to which the person is insured.
632.32(5)(i)
(i) A policy may provide that the limits under the policy for uninsured or underinsured motorist coverage for bodily injury or death resulting from any one accident shall be reduced by any of the following that apply:
632.32(5)(i)1.
1. Amounts paid by or on behalf of any person or organization that may be legally responsible for the bodily injury or death for which the payment is made.
632.32(5)(i)2.
2. Amounts paid or payable under any worker's compensation law.
632.32(5)(i)3.
3. Amounts paid or payable under any disability benefits laws.
632.32(5)(j)
(j) A policy may provide that any coverage under the policy does not apply to a loss resulting from the use of a motor vehicle that meets all of the following conditions:
632.32(5)(j)1.
1. Is owned by the named insured, or is owned by the named insured's spouse or a relative of the named insured if the spouse or relative resides in the same household as the named insured.
632.32(5)(j)2.
2. Is not described in the policy under which the claim is made.
632.32(5)(j)3.
3. Is not covered under the terms of the policy as a newly acquired or replacement motor vehicle.
632.32(6)(a)(a) No policy issued to a motor vehicle handler may exclude coverage upon any of its officers, agents or employes when any of them are using motor vehicles owned by customers doing business with the motor vehicle handler.
632.32(6)(b)
(b) No policy may exclude from the coverage afforded or benefits provided:
632.32(6)(b)1.
1. Persons related by blood or marriage to the insured.
632.32(6)(b)2.a.a. Any person who is a named insured or passenger in or on the insured vehicle, with respect to bodily injury, sickness or disease, including death resulting therefrom, to that person.
632.32(6)(b)2.b.
b. This subdivision, as it relates to passengers, does not apply to a policy of insurance for a motorcycle as defined in
s. 340.01 (32) or a moped as defined in
s. 340.01 (29m) if the motorcycle or moped is designed to carry only one person and does not have a seat for any passenger.
632.32(6)(b)3.
3. Any person while using the motor vehicle, solely for reasons of age, if the person is of an age authorized to drive a motor vehicle.
632.32(6)(b)4.
4. Any use of the motor vehicle for unlawful purposes, or for transportation of liquor in violation of law, or while the driver is under the influence of an intoxicant or a controlled substance or controlled substance analog under
ch. 961 or a combination thereof, under the influence of any other drug to a degree which renders him or her incapable of safely driving, or under the combined influence of an intoxicant and any other drug to a degree which renders him or her incapable of safely driving, or any use of the motor vehicle in a reckless manner. In this subdivision, "drug" has the meaning specified in
s. 450.01 (10).
632.32(6)(c)
(c) No policy may limit the time for giving notice of any accident or casualty covered by the policy to less than 20 days.
632.32 Annotation
Legislative Council Note, 1979: Sub. (1) retains the scope portion of former sub. (1), but the notice provision of former sub. (1) is transferred to new s. 632.26 and broadened to apply to all liability insurance.
632.32 Annotation
Sub. (2) (b) continues former sub. (2) (a); pars. (a) and (c) are new definitions in this place, though par. (a) tracks the language of s. 344.01 (2) (b). It would be possible to sharpen up the definition of motor vehicle, though that can only be done on the basis of a policy determination of what policies should be subject to this section. The exact delimitation of the affected class of policies is of less importance than if the section were mandating insurance or purported to change rules of law.
632.32 Annotation
Sub. (4) continues former sub. (3) and former s. 632.34 (5) with major editorial changes but without intended change of meaning except to add an unidentified hit-run vehicle as an uninsured vehicle. A precise definition of hit-and-run is not necessary for in the rare case where a question arises the court can draw the line.
632.32 Annotation
Sub. (5) continues the permitted provisions of former sub. (2) (b). Par. (d) continues a sentence of former s. 632.32 (2) (b), relocated in relation to other provisions to make its application clearer.
632.32 Annotation
Sub. (5) (e) deals with a latent ambiguity in former s. 204.34, carried forward into s. 632.34, which was picked up and noticed by the Wisconsin Supreme Court in Davison v. Wilson (1975),
71 Wis. 2d 630. The court suggested (at p. 641) that the section should be the subject of a clarifying amendment. The same ambiguity was dealt with by the court in Dahm v. Employers Mutual Liability Insurance Company of Wisconsin (1976),
74 Wis. 2d 123. The resolution of the ambiguity in par. (e) is believed to represent the probable intention of the legislature in the original enactment and, in any event, to represent the sound position in public policy.
632.32 Annotation
Sub. (6) deals with prohibited provisions. Par. (a) picks up the last sentence of former sub. (2) (b) which was a prohibited rather than a required provision. Par. (b) incorporates what was formerly s. 632.34 (3) in sub. (6) (b) 1., former subs. (5) and (6) in sub. (6) (b) 2., former sub. (2) (a) in sub. (6) (b) 3 and former sub. (2) (b) and (c) in sub. (6) (b) 4. Par. (c) continues the first sentence of former s. 632.34 (4), without change.
632.32 Annotation
It escaped the attention of everyone involved in the revision, and not least the principal drafters, that former s. 632.34 (1) narrowed the coverage of old s. 204.34. That has led, in this amendment, to combining most of ss. 632.32 and 632.34 in a single section, numbered 632.32. All parts of s. 632.34 which need to be preserved are transferred to s. 632.32, with the minor exception contained in new s. 632.34. [Bill 146-S]
632.32 Annotation
"Family exclusion clause" valid in state of policy issuance will be given effect in Wisconsin. Knight v. Heritage Mut. Ins. Co. 71 W (2d) 821, 239 NW (2d) 348.
632.32 Annotation
See note to 344.33, citing Gross v. Joecks, 72 W (2d) 583, 241 NW (2d) 727.
632.32 Annotation
Fellow employe exclusion clause is only valid where tort-feasor and injured party are employes of the named insured and employer is required to provide worker's compensation coverage. Dahm v. Employers Mut. Liability Ins. Co. 74 W (2d) 123, 246 NW (2d) 131.
632.32 Annotation
Spouse who was not party to contract, reasonably believing that coverage existed after insured spouse's death, must be given grace period before having to comply with technical, not commonly known provisions of policy. Handal v. American Farmers Mut. Cas. Co. 79 W (2d) 67, 255 NW (2d) 903.
632.32 Annotation
Implied permission of named insured discussed. American Family Mut. Ins. Co. v. Osusky, 90 W (2d) 142, 279 NW (2d) 719 (Ct. App. 1979).
632.32 Annotation
Injury to police officer who was stabbed while unloading beer cans from automobile did not arise out of use of automobile. Tomlin v. State Farm Mut. Auto. Ins. Co. 95 W (2d) 215, 290 NW (2d) 285 (1980).
632.32 Annotation
Sub. (4) (a) 2. b. does not mandate coverage for accident involving insured's vehicle and unidentified motor vehicle when there was no physical contact between the vehicles. Hayne v. Progressive N. Ins. Co. 115 W (2d) 68, 339 NW (2d) 588 (1983).
632.32 Annotation
Third parties may recover against insurer even though insured's fraudulent application voided policy under 631.11. Rauch v. American Fam. Ins. Co. 115 W (2d) 257, 340 NW (2d) 478 (1983).
632.32 Annotation
See note to 814.025, citing Radlein v. Industrial Fire & Cas. Ins. Co. 117 W (2d) 605, 345 NW (2d) 874 (1984).
632.32 Annotation
"Drive other car" exclusion which prohibited stacking of uninsured motorist benefits against same insurer was voided by 631.43. Welch v. State Farm Mut. Auto. Ins. Co. 122 W (2d) 172, 361 NW (2d) 680 (1985).
632.32 Annotation
Motor vehicle operated by insured driver was not "uninsured" under (4). Hemerley v. American Fam. Mut. Ins. Co. 127 W (2d) 304, 379 NW (2d) 860 (Ct. App. 1985).
632.32 Annotation
Reducing clause in uninsured motorist provision was voided by (4) (a). Nicholson v. Home Ins. Cos. 137 W (2d) 581, 405 NW (2d) 327 (1987).
632.32 Annotation
Because uninsured motorist coverage is "personal and portable", claimant was covered by policy on vehicle not involved in the accident. Parks v. Waffle, 138 W (2d) 70, 405 NW (2d) 690 (Ct. App. 1987).
632.32 Annotation
Loss of consortium isn't separate bodily injury under policy's "each person" limitation. Landsinger v. American Family, 142 W (2d) 138, 417 NW (2d) 899 (Ct. App. 1987).
632.32 Annotation
Insurer could not avoid uninsured motorist coverage based on policy provision excluding resident relatives who own their own car. Hulsey v. American Family Mut. Ins. 142 W (2d) 639, 419 NW (2d) 288 (Ct. App. 1987).
632.32 Annotation
Reducing clause and "regular use" exclusionary clause violated (4) (a). Niemann v. Badger Mut. Ins. Co. 143 W (2d) 73, 420 NW (2d) 378 (Ct. App. 1988).
632.32 Annotation
Auto insurer who pays under uninsured motorist provision is not a tortfeasor or tortfeasor's insurer against whom injured insured's medical insurer may assert subrogation claim. Employers Health Ins. v. General Cas. 161 W (2d) 937, 469 NW (2d) 172 (1991).
632.32 Annotation
Policy may expand but not reduce uninsured motorist coverage; policy not statute determines coverage beyond statutory requirements. Fletcher v. Aetna Casualty & Surety Co. 165 W (2d) 350, 477 NW (2d) 90 (Ct. App. 1991).
632.32 Annotation
Policy cannot limit uninsured motorist coverage to occupants of vehicles. St. Paul Mercury Ins. Co. v. Zastrow, 166 W (2d) 423, 480 NW (2d) 8 (1992).
632.32 Annotation
Where the insurer of a vehicle becomes insolvent, the vehicle is uninsured under sub. (4) (a) 2. even though an insurance guaranty association assumes the liability of the insolvent insurer. Fritsche v. Ford Motor Credit Co. 171 W (2d) 280, 491 NW (2d) 119 (Ct. App. 1992).
632.32 Annotation
To take advantage of sub. (5) (c), a policy must include language which either says permissive users are restricted to the minimum statutory limits of liability or that users may not avail themselves of the policy unless there is no other valid collectible insurance. Carrell v. Wolken, 173 W (2d) 426, 496 NW (2d) 651 (Ct. App. 1992).
632.32 Annotation
A reducing clause unavailable to a tortfeasor which seeks to reduce uninsured motorist benefits is invalid; reduction for worker's compensation is not allowed. United Fire & Cas. Co. v. Kleppe, 174 W (2d) 637, 498 NW (2d) 226 (1993).
632.32 Annotation
Adult members of a named insured's household must be deemed to be capable of giving themselves permission to drive under sub. (5). When the named insured is a corporation and the insurer knows the vehicle is owned by a corporation employee, the owner shall be treated as the named insured under sub. (5). Home Ins. Co. v. Phillips, 175 W (2d) 104, 499 NW (2d) 193 (Ct. App. 1993).
632.32 Annotation
Where premium has been paid for underinsured motorist coverage under which no benefits may ever be paid due to the application of policy definitions, the coverage is illusory and against public policy. Hoglund v. Secura Insurance, 176 W (2d) 265, NW (2d) (Ct. App. 1993).
632.32 Annotation
Despite policy restrictions to the contrary, under sub. (3) separate coverage must be provided to both a named insured and an additional insured where both are actively negligent. Iaquinta v. Allstate Ins. Co. 180 W (2d) 661, 510 NW (2d) 715 (Ct. App. 1993).
632.32 Annotation
Sub. (4) (a) does not require the named insured in commercial fleet policies, where the named insured is a corporation or government entity, to be interpreted as including all the entity's employes. Meyer v. City of Amery, 185 W (2d) 537, 518 NW (2d) 296 (Ct. App. 1994).
632.32 Annotation
The uninsured motorist coverage requirements of s. 632.32 are inapplicable to self-insured entities under s. 344.16. Classified Insurance Co. v. Budget Rent-A-Car Inc. 186 W (2d) 476, 521 NW (2d) 478 (Ct. App. 1994).
632.32 Annotation
Sub. (3) (a) does not apply to uninsured motorist coverage so that a permissive user is entitled to increased coverage limits purchased for specifically named persons not including the user. American Hardware Mut. Ins. Co. v. Steberger, 187 W (2d) 681, 523 NW (2d) 187 (Ct. App. 1994).
632.32 Annotation
A medical insurer with subrogation rights may be an injured person under s. 632.32 (4). An auto insurance policy providing that uninsured motorist coverage does not apply to persons claiming by right of subrogation, impermissibly reduces coverage which the statute mandates for injured persons. WEA Insurance Corp. v. Freiheit, 190 W (2d) 111, 527 NW (2d) 363 (Ct. App. 1994).
632.32 Annotation
No policy issued pursuant to the ch. 344 financial responsibility statutes may exclude coverage for persons related by blood or marriage to the operator as mandated by s. 632.32 (6) (b) 1. Bindrim v. Colonial Ins. Co. 190 W (2d) 525, 527 NW (2d) 321 (1995).
632.32 Annotation
This section does not prevent the exclusion of coverage of vehicles used solely on the insured's premises. Rea v. Transportation Ins. Co. 191 W (2d) 271, 528 NW (2d) 79 (Ct. App. 1995).
632.32 Annotation
This section does not distinguish between an owner and a named insurer. A policy which excludes coverage to the owner of a vehicle covered by the policy violates this section. Kettner v. Wausau Insurance Cos. 191 W (2d) 724, 530 NW (2d) 399 (Ct. App. 1995).
632.32 Annotation
When the insurer defines uninsurance as including underinsurance, all case law concerning an insurer's duties and limitations in an uninsurance situation apply. Kuhn v. Allstate Ins. Co. 193 W (2d) 50, 532 NW (2d) 124 (1995).
632.32 Annotation
An uninsured motorist policy which restricted coverage to cases where the insured is "hit" or "struck" was void. A bite by a dog tied in a parked vehicle was the result of use of the vehicle and subject to coverage. Trampf v. Prudential Property & Casualty Co. 199 W (2d) 380, 544 NW (2d) 596 (Ct. App. 1996).
632.32 Annotation
Under the subrogation provision of sub. (4) (b), there is no requirement that the insurer plead setoff or file a counterclaim in order to recover payments made to or on behalf of its insured. Jones v. Aetna Casualty & Surety Co. 212 W (2d) 165, 567 NW (2d) 904 (Ct. App. 1997).
632.32 Annotation
When the named insured is a corporation, but the insurer knows the covered vehicles are owned by individuals and used by family members, this section does not distinguish between the owner of the vehicle and the named insurer in determining coverage. Greene v. General Casualty Co. 216 W (2d) 152, 576 NW (2d) 56 (Ct. App. 1997).
632.32 Annotation
Sub. (4) does not prohibit the application of a policy arbitration clause to a disputed claim under the policy's uninsured motorist clause. Jones v. Poole, 217 W (2d) 116, 579 NW (2d) 739 (Ct. App. 1998).
632.32 Annotation
Because a business operates under a variety of "d/b/a" designations and provides a spectrum of services, some of which qualify under sub. (5) (c) and some of which do not, does not operate to bar the coverage restrictions under that paragraph. That a policy names a "d/b/a" designation does not prevent looking to the entire legal entity to apply sub. (5) (c). Binon v. Great Northern Insurance Co. 218 W (2d) 26, 580 NW (2d) 370 (Ct. App. 1998).
632.32 Annotation
Neither statutes nor case law expressly prohibit territorial limitations on uninsured motorist coverage. A clause restricting the territorial application of uninsured motorist is valid. Clark v. American Family Mutual Insurance Co. 218 W (2d) 169, 577 NW (2d) 790 (1998).
