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,
01-0017.
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,
01-0178.
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,
00-1369. See also Ruenger v. Soodsma, 2005 WI App 79,
281 Wis. 2d 228,
695 N.W.2d 840,
04-1795.
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,
00-1369.
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,
01-1302.
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,
00-0944.
632.32 Annotation
Although a reducing clause in the underinsured motorist (UIM) 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,
00-2682.
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
The fact that an insurance policy may include arguably ambiguous language upon which the insurer has not relied is of no consequence and will not defeat the right of an insurer to reduce its limits of liability under a valid provision under sub. (5) (i). Remiszewski v. American Family Insurance Co. 2004 WI App 175,
276 Wis. 2d 167,
687 N.W.2d 809,
03-2653.
632.32 Annotation
A valid anti-stacking provision need not be a word-for-word mirror of sub. (5) (f). Remiszewski v. American Family Insurance Co. 2004 WI App 175,
276 Wis. 2d 167,
687 N.W.2d 809,
03-2653.
632.32 Annotation
There is no "magic language" required by sub. (5) (i). A reducing clause does not have to mirror the language of the statute. The phrase "or any similar law" following a reference to worker's compensation benefits was not an invalid attempt to reduce payments from sources not permitted under sub. (5) (i). Myers v. General Casualty Company of Wisconsin, 2005 WI App 49,
279 Wis. 2d 432,
694 N.W.2d 723,
04-0827.
632.32 Annotation
Sub. (3) extended coverage under an umbrella policy with an endorsement covering vehicles of the policy owners' daughter to include liability for an accident involving the daughter's car while being driven by a 3rd party with the daughter's permission. Dorbritz v. American Family Mutual Insurance Company, 2005 WI App 154,
284 Wis. 2d 442,
702 N.W.2d 406,
04-1896.
632.32 Annotation
Sub. (3) (a) mandates that, except as provided in sub. (5), coverage provided to the named insured must apply in the same manner and under the same provisions to any person riding in any motor vehicle described in the policy. Sub. (3) (a) applies to uninsured motorist coverage, regardless of whether that coverage is categorized as liability or indemnity insurance. An insurer cannot cast its "other insurance" clause as an "exclusion" under subsection (5) (e) in order to save the clause from the requirements of subsection (3) (a). An "other insurance" clause that operated so that the policy provided primary coverage for a named insured while providing only excess coverage for an occupancy insured violated sub. (3) (a). Progressive Northern Insurance Co. v. Hall, 2006 WI 13,
288 Wis. 2d 282,
709 N.W.2d 46,
04-0688.
632.32 Annotation
Neither sub. (3) (a) or (b) requires an insurance policy to provide separate limits of liability to both a person permissively using the covered vehicle and the named insured who is liable by statute for imputed negligence as a sponsor for a minor's driver license, for the minor's negligent operation of a vehicle. LaCount v. General Casualty Company of Wisconsin, 2006 WI 14,
288 Wis. 2d 358,
709 N.W.2d 418,
03-3258.
632.32 Annotation
A full-service car wash where vehicles are serviced and driven by employees is a service station and therefore a statutory motor vehicle handler under sub. (2) (b). Rocker v. USAA Casualty Insurance Company, 2006 WI 26,
289 Wis. 2d 294,
711 N.W.2d 634,
04-0356.
632.32 Annotation
The broad scope of the entire section is dependent upon whether a policy includes motor vehicle coverage, but each subsection can include provisions that exempt certain coverages from the scope as defined in sub. (1). An insurer cannot reduce the scope of the section simply because the motor vehicle coverage is issued as part of a comprehensive insurance policy. The statute can apply despite the fact that an insurer's policy excludes coverage for any vehicles owned by the insured, and no vehicles are specifically described in the policy. Under sub. (1), sub. (6) (a) applies to a policy that provides liability coverage for customers' automobiles while on or next to the premises. Rocker v. USAA Casualty Insurance Company, 2006 WI 26,
289 Wis. 2d 294,
711 N.W.2d 634,
04-0356.
632.32 Annotation
An umbrella policy insures with respect to a particular motor vehicle when the policy requires underlying insurance that does. Accordingly, under sub. (4m), an insurer is required to notify its insured of the availability of underinsured motorist coverage under the umbrella policy. Under the circumstances of the case, that there was not a brief description of the coverage in the umbrella policy as required by sub. (4m) was not fatal when the underlying automobile policy gave the insured underinsured motorist coverage and also defined the coverage in a special full-page endorsement attached to the policy. Rebernick v. Wausau General Insurance Co. 2006 WI 27,
289 Wis. 2d 324,
711 N.W.2d 621,
04-0487.
632.32 Annotation
Sub. (6) (b) 1. applies to underinsured motorist coverage when issued as part of a policy containing liability insurance. Vieau v. American Family Mutual Insurance Company, 2006 WI 31,
289 Wis. 2d 552,
712 N.W.2d 661,
04-1358.
632.32 Annotation
When a tortfeasor injures more than one person in a single occurrence and the injured persons are not insured under the same underinsured motorist policy, a definition of an underinsured motor vehicle that compares the injured person's UIM limits to the limits of a tortfeasor's liability policy without regard to the amount the injured person actually receives from the tortfeasor's insurer is invalid under subs. (4m) and (5)(i). A UIM policy must provide a fixed level of UIM recovery that will be arrived at by combining payments made from all sources. Welin v. American Family Mutual Insurance Company, 2006 WI 81,
292 Wis. 2d 73,
717 N.W.2d 690,
04-1513.
632.32 Annotation
Sub. (5) (i) 2. does not allow the reduction of uninsured motorist policy limits by worker's compensation funds that were paid to the state Work Injury Supplemental Benefit Fund because the insured had no dependents. Teschendorf v. State Farm Insurance Companies, 2006 WI 89,
293 Wis. 2d 123,
717 N.W.2d 258,
03-3521.
632.32 Annotation
Sub. (5) (f) clearly limits its application to addition of limits applying to different motor vehicles. In this case there was a single motorcycle and two insureds. There was but a single coverage and multiple insureds who were entitled to full and equal protection under sub. (3) (a) and to receive the full "each person" limit under the policy. Progressive Casualty Insurance Company v. Bauer, 2007 WI App 122,
301 Wis. 2d 491,
731 N.W.2d 378,
06-1568.
632.32 Annotation
Sub. (5) (i) 1. allows an insurer to reduce the limit of underinsured motorist liability by the amount paid by a non-underinsured motorist tortfeasor. Marotz v. Hallman, 2007 WI 89,
302 Wis. 2d 428,
734 N.W.2d 411,
05-1579.
632.32 Annotation
The physical contact element for a hit-and-run accident under sub. (4) (a) 2. b. requires: 1) a hit by the unidentified motor vehicle, or a part thereof, and 2) a hit to the insured's vehicle by another vehicle or part thereof, but not necessarily by the unidentified vehicle. DeHart v. Wisconsin Mutual Insurance Company, 2007 WI 91,
302 Wis. 2d 564,
734 N.W.2d 394,
05-2962.
632.32 Annotation
The insured's umbrella insurance applied to motor vehicle liability and constitutes a policy within the meaning of sub. (4m). The insurer was therefore required to provide notice of the availability of UIM coverage under that policy and failure to do so violated the mandate of the statute. Pursuant to s. 631.15 (3m), enforcing the umbrella policy "as if it conformed to the statute" entitles the insureds to only the level of coverage necessary for their policy to conform to sub. (4m) (d), $50,000 per person and $100,000 per accident. Stone v. Acuity, 2008 WI 30, ___ Wis. 2d ___,
747 N.W. 2d 149,
05-1629.
632.32 Annotation
Sub. (5) (i) permits two independent underinsured motorist (UIM) carriers with two separate policies to each reduce their respective UIM coverages by the liability limits paid by a single tortfeasor. Progressive Northern Insurance Co. v. Kirchoff, 2008 WI App 108, ___ Wis. 2d ___, ___ N.W.2d ___,
07-1342.
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).
