632.32 Annotation
Sub. (4) requires uninsured motorist coverage when a detached piece of an unidentified motor vehicle is propelled into the insured's motor vehicle by an unidentified motor vehicle. Theis v. Midwest Security Insurance Co. 2000 WI 15,
232 Wis. 2d 749,
606 N.W.2d 162.
632.32 Annotation
Sub. (5) (j) allows "drive other car" exclusions in only very narrow and specific circumstances. It did not allow exclusion of uninsured motorist coverage for an insured injured while occupying a fire truck in the course of her employment. Blazekovic v. City of Milwaukee, 2000 WI 41,
234 Wis. 2d 587,
610 N.W.2d 467.
632.32 Annotation
Although only one parent was the named insured under an uninsured motorist insurance policy paying benefits for the wrongful death of their child, s. 895.04 requires payment of the proceeds to both parents. The purpose of the coverage is to reimburse the victim. If the victim is deceased the compensation must go to the victim's survivors, not to other insureds. Bruflat v. Prudential Property & Casualty Insurance Co. 2000 WI 69,
233 Wis. 2d 523,
608 N.W.2d 371.
632.32 Annotation
Neither sub. (6) nor s. 344.33 requires an automobile insurance policy to include motorcycle coverage. Beerbohm v. State Farm Mutual Automobile Insurance Co. 2000 WI App 105,
235 Wis. 2d 182,
612 N.W.2d 338.
632.32 Annotation
Sub. (5) (i) does not deprive an insured of any state or federal constitutional right to enter into an insurance contract without fraud. An insurer may reduce payments made pursuant to an underinsured motorist clause by amounts received from other legally responsible parties, provided that a fixed level of recovery that will be arrived at by combining payments is clearly stated. Dowhower v. West Bend Mutual Insurance Co. 2000 WI 73,
236 Wis. 2d 113,
613 N.W.2d 557.
632.32 Annotation
No statute requires a self-insured entity under s. 344.16 to provide uninsured motorist coverage as part of the optional insurance it offers to its customers. Prophet v. Enterprise Rent-A-Car Company, Inc. 2000 WI App 171,
238 Wis. 2d 150,
617 N.W.2d 225.
632.32 Annotation
A hit and run under sub. (4) (a) 2. b. requires: 1) an unidentified motor vehicle that; 2) is involved in a "hit;" and 3) "runs" from the accident scene. Physical contact must be present. A hit and run occurs when an unidentified vehicle hits an intermediate vehicle, propelling it into the insured vehicle. Smith v. General Casualty Co. 2000 WI 127,
239 Wis. 2d 646,
619 N.W.2d 882.
632.32 Annotation
This section applies only to policies issued and delivered in Wisconsin. Danielson v. Gasper, 2000 WI App 12,
240 Wis. 2d 633,
623 N.W.2d 182.
632.32 Annotation
When uninsured motorist coverage in the amount of $25,000 was contracted for in violation of the requirement for $50,000 coverage under sub. (4m) (d), the higher level of coverage was read into the policy under s. 631.15 (3m), even though it was not reflected in the premium paid. Brunson v. Ward, 2001 WI 89,
245 Wis. 2d 163,
629 N.W.2d 140.
632.32 Annotation
The statute of limitations for subrogation claims under sub. (4) (a) 3. is the statute of limitations on the underlying tort. Schwittay v. Sheboygan Falls Mutual Insurance Co. 2001 WI App 140,
246 Wis. 2d 385,
630 N.W.2d 772.
632.32 Annotation
Sub. (6) (a) was applicable to a general liability policy that contained an endorsement for non-owned liability coverage. Heritage Mutual Insurance Co. v. Wilber, 2001 WI App 247,
248 Wis. 2d 111,
635 N.W.2d 631.
632.32 Annotation
Sub. (5) (f) contains no requirement that a policy clause contain specific language or that the policy parrot the statute in order for an antistacking provision to be enforceable. Gragg v. American Family Mutual Insurance Co. 2001 WI App 272,
248 Wis. 2d 735,
637 N.W.2d 477.
632.32 Annotation
An underinsured motorist provision that required the named insurer to be an occupant of an insured vehicle violated sub. (6) (b) 2. a. because the occupancy requirement had the effect of excluding coverage for a named insured. Mau v. North Dakota Insurance Reserve Fund, 2001 WI 134,
248 Wis. 2d 1031,
637 N.W.2d 45.
632.32 Annotation
An underinsured motorist provision that required the named insurer to be an occupant of an insured vehicle was a "drive other car" exclusion under sub. (5) (j) because it had the effect of excluding coverage for a named insured not occupying the insured vehicle. Because the vehicle was a rental vehicle, it did not meet the requirement of sub. (5) (j) 1. that a vehicle subject to a permissible "drive other car" exclusion must be owned by a named insured or related party. Mau v. North Dakota Insurance Reserve Fund, 2001 WI 134,
248 Wis. 2d 1031,
637 N.W.2d 45.
632.32 Annotation
Sub. (5) (i) 1. does not permit an uninsured motorist insurer to reduce its coverage by an amount the insured received from another uninsured motorist insurer. A reduction for payments by a party responsible for the injury permitted under sub. (5) (i) 1. refers to payments made by or on behalf of a tortfeasor. Janssen v. State Farm Mutual Auto Insurance Co. 2002 WI App 72,
251 Wis. 2d 660,
643 N.W.2d 857.
632.32 Annotation
For actions seeking coverage under an underinsured motorist policy, the statute of limitations begins to run from the date of loss, which is the date on which a final resolution is reached in the underlying claim against the tortfeasor, be it through denial of that claim, settlement, judgment, execution of releases, or other form of resolution, whichever is the latest. Yocherer v. Farmers Insurance Exchange, 2002 WI 41,
252 Wis. 2d 114,
643 N.W.2d 457.
632.32 Annotation
Although a reducing clause in the underinsured (UIM) motorist provisions of a policy may comport with the requirements of sub. (5) (i), it may not, when viewed in the context of the entire policy, clearly set forth that the insured is purchasing a fixed level of UIM recovery arrived at by combining payments from all sources. In that case, the reducing clause is ambiguous and unenforceable, and renders the UIM coverage illusory. Badger Mutual Insurance Co. v. Schmitz, 2002 WI 98,
255 Wis. 2d 61,
647 N.W.2d 223.
632.32 Annotation
By saying the insured's underinsured motorist coverage would be reduced by payments from any and every source, rather than the 3 allowed by sub. (5) (i), a reducing clause did not clearly inform the insured of the level of coverage actually purchased and was unenforceable. Hanson v. Prudential Property & Casualty Insurance Company, 2002 WI App 275,
258 Wis. 2d 709,
653 N.W.2d 915.
632.32 Annotation
Sub. (3) (b) does not extend policy-limits protection to both the tortfeasor and the person or persons vicariously liable for the tortfeasor's wrongdoing. A person to whom the negligence of another is imputed is not entitled to separate liability coverage. Folkman v. Quamme, 2003 WI 116,
264 Wis. 2d 571,
665 N.W.2d 857,
02-0261.
632.32 Annotation
An insurer is not barred from creating a traditional limit on liability for bodily injury because the limit is not expressly authorized by sub. (5) (f). The focus of sub. (5) (f) is directed at policy provisions affecting uninsured- or underinsured-motorist coverage, or other coverage that implicates coverage to more than one vehicle. To read its scope beyond this subject matter is unreasonable. Folkman v. Quamme, 2003 WI 116,
264 Wis. 2d 571,
665 N.W.2d 857,
02-0261.
632.32 Annotation
Sub. (6) (b) 2. a. only prohibits excluding coverage for certain individuals relating to the insured vehicle. An exclusion barring coverage for a non-owned vehicle is not prohibited. Gulmire v. St. Paul Fire and Marine Insurance Company, 2004 WI App 18,
269 Wis. 2d 501,
674 N.W.2d 629,
03-1199.
632.32 Annotation
A self-insured city is not an insurer writing policies subject to s. 632.32 (4m) (a) 1. and is not subject to the requirement to provide underinsured motorist coverage. Van Erden v. Sobczak, 2004 WI App 40,
271 Wis. 2d 163,
677 N.W.2d 718,
02-1595.
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 Wis. 2d 148,
513 N.W.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
Subch. V of ch. 632 Cross-reference
Cross Reference: See also ch.
Ins 2, Wis. adm. code.
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)
(2) Burial insurance. Except as provided in
s. 632.415, no contract in which the insurer agrees to provide benefits 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 Cross-reference
Cross Reference: See also ch.
Ins 23, Wis. adm. code.
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.
632.415(1)(1) In this section, "multipremium funeral policy" means a life insurance policy sold under
sub. (2) for which premiums to fund the policy are paid over time.
632.415(2)
(2) 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.
632.415(3)
(3) A life insurance policy sold under
sub. (2) shall permit the policyholder to designate a different beneficiary, upon written notice to the insurer, 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.
632.415(4)(a)(a) An insurer may issue a multipremium funeral policy only if, at the time that the policy is issued, the face amount of the policy is not less than the value of funeral merchandise and services to be provided under a burial agreement under
s. 445.125 (3m).
632.415(4)(b)
(b) The death benefit under a multipremium funeral policy may not be less than the face amount of the policy unless all of the following apply:
632.415(4)(b)1.
1. The policy contains a detailed explanation of the lower death benefit, as well as full disclosure of the lower death benefit on the first page of the policy.
632.415(4)(b)2.
2. The applicant does not apply for, or qualify for, any full face amount multipremium funeral policy that the insurer offers.
632.415(4)(b)3.
3. The death benefit is not less than at least one of the following:
632.415(4)(b)3.a.
a. Twenty-five percent of the face amount of the policy during the first year that the policy is in effect, 50% of the face amount of the policy during the 2nd year that the policy is in effect and the full face amount of the policy after the end of the 2nd year that the policy is in effect, but in no event less than the total of the premiums actually paid.
632.415(4)(b)3.b.
b. During the first 2 years that the policy is in effect, an amount equal to the actual premiums paid plus simple interest at the rate of 3% per year, and, after the end of the 2nd year that the policy is in effect, the full face amount of the policy.
632.415(4)(c)
(c) The period over which premiums may be payable under a multipremium funeral policy may not exceed the following applicable period:
632.415(4)(c)1.
1. Twenty years, if the insured is less 60 years of age when the policy is issued.
632.415(4)(c)2.
2. Ten years, if the insured is at least 60 years of age but less than 80 years of age when the policy is issued.
632.415(4)(c)3.
3. Five years, if the insured is at least 80 years of age when the policy is issued.
632.415(4)(d)
(d) At the time that an applicant applies for coverage under a multipremium funeral policy, the insurance intermediary or other person selling or soliciting the sale of the policy shall disclose the maximum number of premium payments to be made over the life of the policy, the frequency of the premium payments and the amount of each premium payment.
632.415(4m)
(4m) Proof of death for an insurance policy sold under
sub. (2) may be established with an affidavit in the form prescribed under
s. 69.02 (1) (c) if the insurer consents to receipt of the affidavit.
632.415(5)
(5) Subject to
subs. (3) and
(4), the commissioner shall by rule establish minimum standards for claims payments, marketing practices and reporting practices for life insurance policies sold under
sub. (2).
632.415 History
History: 1999 a. 191 ss.
2 to
5;
2003 a. 167.
632.415 Cross-reference
Cross Reference: See also ch.
Ins 23, Wis. adm. code.
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.
