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).
632.32 Annotation
Sub. (6) (b) 1. prevents insurers from excluding persons related by blood or marriage from coverage under a liability policy, but is inapplicable to other than liability policies. Peabody v. American Family Mutual Insurance Co. 220 W (2d) 340, 582 NW (2d) 753 (Ct. App. 1998).
632.32 Annotation
Uninsured motorist coverage: Wisconsin courts open up additional avenues of recovery. Dunphy. WBB Nov. 1982.
632.34
632.34
Defense of noncooperation. If a policy of automobile liability insurance provides a defense to the insurer for lack of cooperation on the part of the insured, the defense is not effective against a 3rd person making a claim against the insurer unless there was collusion between the 3rd person and the insured or unless the claimant was a passenger in or on the insured vehicle. If the defense is not effective against the claimant, after payment the insurer is subrogated to the injured person's claim against the insured to the extent of the payment and is entitled to reimbursement by the insured.
632.34 History
History: 1975 c. 375,
421;
1979 c. 102,
104,
177.
632.34 Annotation
Legislative Council Note, 1979: This provision is continued from former s. 632.34 (8). It is changed from a required provision of the policy to a rule of law. It is not the kind of rule that needs to be put in the policy to inform the policyholder. Indeed, the policyholder should receive no encouragement to fail to cooperate. This is a relaxation of present law. [Bill 146-S]
632.34 Annotation
Prejudice is not a component of the defense of noncooperation. Schaefer v. Northern Assurance Co. 182 W (2d) 148, 513 NW (2d) 16 (Ct. App. 1994).
632.35
632.35
Prohibited rejection, cancellation and nonrenewal. No insurer may cancel or refuse to issue or renew an automobile insurance policy wholly or partially because of one or more of the following characteristics of any person: age, sex, residence, race, color, creed, religion, national origin, ancestry, marital status or occupation.
632.35 History
History: 1975 c. 375;
1979 c. 102.
632.36
632.36
Accident in the course of business or employment. 632.36(1)(1)
Rate and other terms. An insurer may increase or charge a higher rate for a motor vehicle liability insurance policy issued or renewed on or after April 16, 1982, on the basis of an accident which occurs while the insured is operating a motor vehicle in the course of the insured's business or employment, only if the policy covers the insured for liability arising in the course of the insured's business or employment. An insurer may issue or renew a motor vehicle liability insurance policy on or after November 1, 1989, on terms that are less favorable to the insured than would otherwise be offered, including but not limited to the rate, because of an accident which occurs while the insured is operating a motor vehicle in the course of the insured's business or employment, only if the policy covers the insured for liability arising in the course of the insured's business or employment.
632.36(2)
(2) Cancellation or nonrenewal. An insurer may cancel a motor vehicle liability insurance policy that is issued or renewed on or after November 1, 1989, or refuse to renew a motor vehicle liability insurance policy on or after November 1, 1989, on the basis of an accident which occurs while the insured is operating a motor vehicle in the course of the insured's business or employment, only if the policy covers the insured for liability arising in the course of the insured's business or employment.
632.36 History
History: 1981 c. 178;
1989 a. 31.
632.365
632.365
Use of emission inspection data in setting rates. An insurer may not use odometer reading data collected in the course of an inspection under
s. 110.20 (6) or
(7) as a factor in setting rates or premiums for a motor vehicle liability insurance policy or as a factor in altering rates or premiums during the term, or at renewal, of such a policy. However, an insurer may use such data as a basis for investigation into the number of miles that the motor vehicle is normally driven.
632.365 History
History: 1991 a. 279;
1993 a. 213.
632.37
632.37
Motor vehicle glass repair practices; restriction on specifying vendor. An insurer that issues a motor vehicle insurance policy covering the repair or replacement of motor vehicle glass may not require, as a condition of that coverage, that an insured, or a 3rd party, making a claim under the policy for the repair or replacement of motor vehicle glass obtain services or parts from a particular vendor, or in a particular location, specified by the insurer.
632.37 History
History: 1991 a. 269.
632.38
632.38
Nonoriginal manufacturer replacement parts. 632.38(1)(a)
(a) "Insured" means the person who owns the motor vehicle that is subject to repair or the person seeking the repair on behalf of the owner.
632.38(1)(b)
(b) "Insurer's representative" means a person, excluding the person repairing the motor vehicle, who has agreed in writing to represent an insurer with respect to a claim.
632.38(1)(c)
(c) "Motor vehicle" means any motor-driven vehicle required to be registered under
ch. 341 or exempt from registration under
s. 341.05 (2), including a demonstrator or executive vehicle not titled or titled by a manufacturer or a motor vehicle dealer. "Motor vehicle" does not mean a moped, semitrailer or trailer designed for use in combination with a truck or truck tractor.
632.38(1)(d)
(d) "Nonoriginal manufacturer replacement part" means a replacement part that is not made by or for the manufacturer of an insured's motor vehicle.
632.38(1)(e)
(e) "Replacement part" means a replacement for any of the nonmechanical sheet metal or plastic parts that generally constitute the exterior of a motor vehicle, including inner and outer panels.
632.38(2)
(2) Notice of intended use. An insurer or the insurer's representative may not require directly or indirectly the use of a nonoriginal manufacturer replacement part in the repair of an insured's motor vehicle, unless the insurer or the insurer's representative provides to the insured the notice described in this subsection in the manner required in
sub. (3) or
(4). The notice shall be in writing and shall include all of the following information:
632.38(2)(a)
(a) A clear identification of each nonoriginal manufacturer replacement part that is intended for use in the repair of the insured's motor vehicle.
632.38(2)(b)
(b) The following statement in not smaller than 10-point type: "This estimate has been prepared based on the use of one or more replacement parts supplied by a source other than the manufacturer of your motor vehicle. Warranties applicable to these replacement parts are provided by the manufacturer or distributor of the replacement parts rather than by the manufacturer of your motor vehicle."
632.38(3)(a)(a) The notice described in
sub. (2) shall appear on or be attached to the estimate of the cost of repairing the insured's motor vehicle if the estimate is based on the use of one or more nonoriginal manufacturer replacement parts and is prepared by the insurer or the insurer's representative. The insurer or the insurer's representative shall deliver the estimate and notice to the insured before the motor vehicle is repaired.
632.38(3)(b)
(b) If the insurer or the insurer's representative directs the insured to obtain one or more estimates of the cost of repairing the insured's motor vehicle and the estimate approved by the insurer or the insurer's representative clearly identifies one or more nonoriginal manufacturer replacement parts to be used in the repair, the insurer or the insurer's representative shall assure delivery of the notice described in
sub. (2) to the insured before the motor vehicle is repaired.
632.38(3)(c)
(c) The insurer or the insurer's representative may not require the person repairing the motor vehicle to give the notice described in
sub. (2).
632.38(3)(d)
(d) Notwithstanding
par. (b), if an insured authorizes repairs to begin prior to the approval by the insurer or the insurer's representative of an estimate that clearly identifies one or more nonoriginal manufacturer replacement parts to be used in the repair, the insurer or the insurer's representative shall send the written notice described in
sub. (2) by mail to the insured's last-known address no later than 3 working days after the insurer or the insurer's representative receives the estimate.
632.38(4)
(4) Notice by telephone. Notwithstanding
sub. (3), notice of the intention to use nonoriginal manufacturer replacement parts in the repair of the insured's motor vehicle may be given by the insurer or the insurer's representative by telephone. If such notice is given, the insurer or insurer's representative shall send the written notice described in
sub. (2) by mail to the insured's last-known address no later than 3 working days after the telephone contact.
632.38 History
History: 1991 a. 176.
LIFE INSURANCE AND ANNUITIES
632.41
632.41
Prohibited provisions in life insurance. 632.41(1)(1)
Assessable policies. No insurer may issue assessable life insurance policies under which assessments or calls may be made upon policyholders or others.
632.41(2)(a)(a) Except as provided in
par. (b), no contract in which the insurer agrees to pay for any of the incidents of burial or other disposition of the body of a deceased may provide that the benefits are payable to a funeral director or any other person doing business related to burials.
632.41(2)(b)1.1. A life insurance policy may provide for the assignment of the proceeds of the policy to a funeral director or operator of a funeral establishment if the insurance intermediary who sells or solicits the sale of the policy is not an agent of the funeral director or operator of the funeral establishment or if the assignment of proceeds is contingent on the provision of funeral merchandise or funeral services as provided for in a burial agreement that satisfies the requirements of
s. 445.125 (3m) and rules promulgated by the funeral directors examining board under
s. 445.125 (3m) (j) 1. b.
632.41(2)(b)2.
2. Subject to
subd. 3., the commissioner shall by rule establish minimum standards for benefits, claims payments, marketing practices, compensation arrangements and reporting practices for life insurance policies sold under
subd. 1.
632.41(2)(b)3.
3. A life insurance policy sold under
subd. 1. shall permit the policyholder to designate a different beneficiary, after written notice to the current beneficiary, and a different funeral director or operator of a funeral establishment that is to receive the assignment of proceeds, after written notice to the current funeral director or operator of the funeral establishment.
632.41 Annotation
Sub. (2) does not prohibit naming funeral director as beneficiary of life insurance policy in conjunction with separate agreement between insured and funeral director that proceeds will be used for funeral and burial expenses.
71 Atty. Gen. 7.
632.41 AnnotationPurpose of (2) is to prevent monopolistic or unfair trade practices.
76 Atty. Gen. 291.
632.42
632.42
Trustee and deposit agreements in life insurance. 632.42(1)(1)
Trustee and other agreements. An insurer may hold as a part of its general assets the proceeds of any policy subject to this subchapter under a trust or other agreement upon such terms and restrictions as to revocation by the policyholder and control by the beneficiary and with such exemptions from the claims of creditors of the beneficiary as the insurer and the policyholder agree to in writing. An insurer may also receive funds in such amounts and upon such conditions, including the right of the policyholder to withdraw unused portions thereof, as the insurer and the policyholder agree to in writing:
632.42(1)(a)
(a)
Advance premiums. As premiums in advance upon policies or annuities subject to this subchapter; or
632.42(1)(b)
(b)
New policies. To accumulate for the purchase of future policies or annuities subject to this subchapter.
632.42(2)
(2) Accumulation of funds. Any insurer may, in connection with life insurance or annuity contracts, accept funds remitted to it under an agreement for an accumulation of the funds for the purpose of providing annuities or other benefits, under such reasonable rules as are prescribed by the commissioner.
632.42 History
History: 1975 c. 373,
375,
422.
632.43
632.43
Standard nonforfeiture law for life insurance. 632.43(1)(1) On and after January 1, 1948, no policy of life insurance, except as stated in
sub. (8), shall be issued or delivered in this state unless it shall contain in substance the following provisions, or corresponding provisions which in the opinion of the commissioner are at least as favorable to the defaulting or surrendering policyholder as the minimum requirements under this section and are substantially in compliance with
sub. (7m):
632.43(1)(a)
(a) In the event of default in any premium payment, the company will grant, upon proper request not later than 60 days after the due date of the premium in default, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of the due date, of an amount specified in this section or an actuarially equivalent paid-up nonforfeiture benefit which provides a greater amount or longer period of death benefits or a greater amount or earlier payment of endowment benefits.
632.43(1)(b)
(b) Upon surrender of the policy within 60 days after the due date of any premium payment in default after premiums have been paid for at least 3 full years in the case of ordinary insurance or 5 full years in the case of industrial insurance, the company will pay, in lieu of any paid-up nonforfeiture benefit, a cash surrender value of such amount as may be hereinafter specified.
632.43(1)(c)
(c) A specified paid-up nonforfeiture benefit shall become effective as specified in the policy unless the person entitled to make such election elects another available option not later than 60 days after the due date of the premium in default.
632.43(1)(d)
(d) If the policy shall have become paid up by completion of all premium payments or if it is continued under any paid-up nonforfeiture benefit which became effective on or after the third policy anniversary in the case of ordinary insurance or the fifth policy anniversary in the case of industrial insurance, the company will pay, upon surrender of the policy within 30 days after any policy anniversary, a cash surrender value of such amount as may be hereinafter specified.
632.43(1)(e)
(e) For policies which cause on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or which provide an option for changes in benefits or premiums other than a change to a new policy, a statement of the mortality table, interest rate, and method used in calculating cash surrender values and the paid-up nonforfeiture benefits available under the policy. For other policies, a statement of the mortality table and interest rate used in calculating the cash surrender values and the paid-up nonforfeiture benefits available under the policy and a table showing any cash surrender value or paid-up nonforfeiture benefit available under the policy on each policy anniversary during the shorter of the first 20 policy years or the term of the policy assuming that there are no dividends or paid-up additions credited to the policy and that there is no indebtedness to the company on the policy.
632.43(1)(f)
(f) A statement that the cash surrender values and the paid-up nonforfeiture benefits available under the policy are not less than the minimum values and benefits required by or pursuant to the insurance law of the state in which the policy is delivered; an explanation of the manner in which the cash surrender values and the paid-up nonforfeiture benefits are altered by the existence of any paid-up additions credited to the policy or any indebtedness to the company on the policy; if a detailed statement of the method of computation of the values and benefits shown in the policy is not stated therein, a statement that such method of computation has been filed with the insurance supervisory official of the state in which the policy is delivered; and a statement of the method to be used in calculating the cash surrender value and paid-up nonforfeiture benefit available under the policy on any policy anniversary beyond the last anniversary for which such values and benefits are consecutively shown in the policy.
632.43(1)(g)
(g) The company shall reserve the right to defer the payment of any cash surrender value for a period of 6 months after demand therefor with surrender of the policy.
632.43(1)(h)
(h) Any of the foregoing provisions or portions thereof not applicable by reason of the plan of insurance may, to the extent inapplicable, be omitted from the policy.
632.43(2)(a)(a) Any cash surrender value under the policy on default of a premium payment due on any policy anniversary shall be not less than any excess of the then present value of any existing paid-up additions and future guaranteed benefits which would have been provided by the policy, if there had been no default, over the sum of the present value of the adjusted premiums under
subs. (4) to
(6m) corresponding to premiums which would have fallen due on and after the anniversary and the amount of any indebtedness to the company on the policy.
632.43(2)(b)
(b) For a policy issued on or after the operative date of
sub. (6m) providing by rider or supplemental provision supplemental life insurance or annuity benefits at the option of the insured on payment of an additional premium, any cash surrender value under the policy on default of a premium payment due on a policy anniversary shall be not less than the sum of the following:
632.43(2)(b)1.
1. The cash surrender value under
par. (a) for the policy without the rider or supplemental provision.
632.43(2)(b)2.
2. The cash surrender value under
par. (a) for a policy providing only the benefits of the rider or supplemental provision.
632.43(2)(c)
(c) For a family policy issued on or after the operative date of
sub. (6m) providing term insurance on the life of the spouse of the primary insured expiring before the spouse attains the age of 71, any cash surrender value under the policy on default of a premium payment due on a policy anniversary shall be not less than the sum of the following:
632.43(2)(c)1.
1. The cash surrender value under
par. (a) for the policy without the term insurance on the life of the spouse.
632.43(2)(c)2.
2. The cash surrender value under
par. (a) for a policy providing only the benefits of the term insurance on the life of the spouse.
632.43(2)(d)
(d) Any cash surrender value available within 30 days after any policy anniversary under any policy paid-up by completion of all premium payments or any policy continued under any paid-up nonforfeiture benefit shall be not less than the then present value of any existing paid-up additions and future guaranteed benefits provided by the policy decreased by any indebtedness to the company on the policy.
632.43(3)
(3) Any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment due on any policy anniversary shall be such that its present value as of such anniversary shall be at least equal to the cash surrender value then provided for by the policy or, if none is provided for, that cash surrender value which would have been required by this section in the absence of the condition that premiums shall have been paid for at least a specified period.
