SB386,1,11
1An Act to repeal 227.01 (13) (zz), 344.01 (2) (am), 344.11, 632.32 (2) (am), 632.32
2(2) (cm), 632.32 (2) (d), 632.32 (2) (e), 632.32 (2) (f), 632.32 (2) (g), 632.32 (4) (a)
32m., 632.32 (4) (bc) and 632.32 (4r);
to renumber 632.32 (2) (at) and 632.32 (2)
4(h);
to renumber and amend 344.33 (2), 632.32 (4) (a) (intro.), 632.32 (4) (a)
53m., 632.32 (4) (c), 632.32 (6) (d), 632.32 (6) (e), 632.32 (6) (f) and 632.32 (6) (g);
6to consolidate, renumber and amend 344.15 (1) (intro.), (a) and (b);
to
7amend 121.555 (2) (a), 344.01 (2) (d), 344.55 (1) (intro.), 631.43 (3), 632.32 (4)
8(title) and 632.32 (4) (a) 1.; and
to create 344.33 (2) (a), 344.33 (2) (b), 344.33
9(2) (c), 632.32 (4) (a) (title), 632.32 (4) (a) 2. and 632.32 (4m) of the statutes;
10relating to: automobile insurance coverage limits and proof of financial
11responsibility.
Analysis by the Legislative Reference Bureau
Proof of financial responsibility
Under former law, prior to
2009 Wisconsin Act 28 (the biennial budget act),
motor vehicles operated in this state were not required to be covered by policies of
bodily injury and property damage liability insurance, but owners and operators of
motor vehicles involved in accidents were subject to certain financial responsibility
requirements. The biennial budget act retained and modified these financial
responsibility requirements following a motor vehicle accident while also requiring
insurance coverage for motor vehicles operated in this state.
Under current law, if a motor vehicle accident results in injury, death, or
property damage of $1,000 or more, the Department of Transportation (DOT) is
required to notify the operator and owner of the vehicle involved in the accident that
the person must deposit with DOT security for the accident in an amount specified
by DOT, which DOT has determined is sufficient to satisfy any judgment for damages
resulting from the accident. Unless an exception applies, if a person fails to timely
deposit security after this notice, DOT must suspend the person's operating privilege
if the person was the vehicle operator and suspend all vehicle registrations of the
person if the person was the vehicle owner. One of the exceptions is that the person
provides proof of financial responsibility. In addition, if DOT receives a certified copy
of a judgment for damages of $500 or more arising out of a motor vehicle accident,
DOT must immediately suspend the operating privilege and all registrations of the
person against whom the judgment was rendered unless the person can provide proof
of financial responsibility. In both situations, proof of financial responsibility
includes coverage under a motor vehicle liability insurance policy with the following
minimum limits for any single accident:
1. Before January 1, 2010, $25,000 for bodily injury to or death of one person,
$50,000 for bodily injury to or death of more than one person, and $10,000 for
property damage.
2. From January 1, 2010, to December 31, 2016, $50,000 for bodily injury to or
death of one person, $100,000 for bodily injury to or death of more than one person,
and $15,000 for property damage.
3. After December 31, 2016, the limits specified in item 2., above, adjusted for
inflation and published by DOT.
This bill restores former law by decreasing the minimum limits required under
a policy that is acceptable proof of financial responsibility to the limits applicable
before the biennial budget act: $25,000 for bodily injury to or death of one person,
$50,000 for bodily injury to or death of more than one person, and $10,000 for
property damage.
This bill does not eliminate the provisions of the biennial budget act that,
beginning June 1, 2010, prohibit a person from operating a motor vehicle in this state
unless the owner or operator has a motor vehicle liability insurance policy in effect
with respect to the motor vehicle. However, the bill affects these provisions by
reducing the required coverage from the minimum limits specified in items 1. to 3.,
above, to the applicable minimum limits for proof of financial responsibility under
former law: $25,000 for bodily injury to or death of one person, $50,000 for bodily
injury to or death of more than one person, and $10,000 for property damage.
Uninsured motorist and medical payments coverages
Under former law, all motor vehicle liability insurance policies were required
to include uninsured motorist coverage in limits of at least $25,000 per person and
$50,000 per accident and medical payments coverage in the amount of at least $1,000
per person. Uninsured motorist coverage provides coverage for persons who are
legally entitled to recover damages for bodily injury from owners or operators of
motor vehicles that are not insured. Medical payments coverage pays for medical or
chiropractic services provided to persons who are injured while using the insured
motor vehicle. Starting on November 1, 2009, as a result of provisions in the biennial
budget act, the level of uninsured motorist coverage that motor vehicle liability
insurance policies, except for those written by town mutuals, must include is
increased to $100,000 per person and $300,000 per accident and the level of medical
payments coverage that those policies must include is increased to $10,000. This bill
reinstates former law.
Underinsured motorist coverage
Former law did not require motor vehicle liability insurance policies to include
underinsured motorist coverage but required insurers to provide written notice of
the availability of that coverage to one insured under each policy written after
October 1, 1995, that did not include the coverage, as well as to one insured under
each motor vehicle liability insurance policy in effect on that date that did not include
the coverage. If an insured accepted underinsured motorist coverage after receiving
notice of its availability, the policy had to include the coverage in limits of at least
$50,000 per person and $100,000 per accident. Underinsured motorist coverage
provides coverage for persons who are legally entitled to recover damages for bodily
injury from owners or operators of underinsured motor vehicles. "Underinsured
motor vehicle" was not defined in the statutes.
The biennial budget act eliminated the requirement to provide notice of the
availability of underinsured motorist coverage and required, starting on November
1, 2009, every motor vehicle liability insurance policy, except for those written by
town mutuals, to include that coverage in limits of at least $100,000 per person and
$300,000 per accident. In addition, current law now defines an underinsured motor
vehicle as a motor vehicle that is involved in an accident with an insured and which,
at the time of the accident, was covered by a motor vehicle liability insurance policy
with limits that are less than the amount needed to fully compensate the insured for
his or her damages. The bill reinstates former law.
Umbrella and excess liability insurance policies
The Wisconsin Administrative Code exempts umbrella and excess liability
insurance policies from the requirement under the statutes that a policy covering
motor vehicle liability must include uninsured motorist coverage. Nothing in former
law, however, exempted an insurer writing umbrella or excess liability insurance
policies from the requirement in the statutes to provide notice of the availability of
underinsured motorist coverage.
Current law, as a result of provisions in the biennial budget act, requires an
insurer, except for a town mutual, that writes umbrella or excess liability policies
that cover motor vehicle liability to make a written offer of both uninsured motorist
coverage and underinsured motorist coverage whenever application is made for such
an umbrella or excess liability policy. Current law also requires an insurer to make
a written offer of uninsured motorist coverage at the first renewal after November
1, 2009, of such a policy that does not include that coverage and a written offer of
underinsured motorist coverage at the first renewal after November 1, 2009, of such
a policy that does not include that coverage. An applicant or insured may reject the
coverage, but must do so in writing. If an insurer fails to provide a required written
offer of uninsured or underinsured motorist coverage and the umbrella or excess
liability policy does not include the coverage, or coverages, for which an offer was not
given, a court must, on the request of the insured, reform the policy to include the
coverage or coverages with the same limits as the liability coverage limits under the
policy. The bill restores former law by eliminating the requirement that an insurer
writing an umbrella or excess liability policy make a written offer of uninsured
motorist coverage and underinsured motorist coverage.
Miscellaneous motor vehicle insurance provisions
Current law, as a result of provisions in the biennial budget act, makes a
number of formerly permissible provisions prohibited in a motor vehicle liability
insurance policy. The bill restores former law, making the following provisions
permissible in a motor vehicle liability insurance policy:
1. Providing that, regardless of the number of policies, persons, or vehicles
involved, the limits for any coverage under the policy may not be added to the limits
for similar coverage applying to other motor vehicles to determine an overall limit
of coverage available for a person in any one accident.
2. Providing that the maximum amount of uninsured or underinsured motorist
coverage available for bodily injury or death suffered by a person not using a motor
vehicle in an accident (such as a pedestrian) is the highest single limit of uninsured
or underinsured motorist coverage for any vehicle with respect to which the person
is insured at the time of the accident.
3. Providing that the maximum amount of medical payments coverage
available for bodily injury or death suffered by a person not using a motor vehicle in
an accident is the highest single limit of medical payments coverage for any vehicle
with respect to which the person is insured at the time of the accident.
4. Providing that the limits under the policy for uninsured or underinsured
motorist coverage for bodily injury or death resulting from an accident shall be
reduced by amounts paid or payable by or on behalf of a person or organization that
is legally responsible for the bodily injury or death; amounts paid or payable under
any worker's compensation law; or amounts paid or payable under any disability
benefits laws.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB386,5,9
1121.555
(2) (a)
Insurance. If the vehicle is owned or leased by a school or a
2school bus contractor, or is a vehicle authorized under sub. (1) (b), it shall comply with
3s. 121.53. If the vehicle is transporting 9 or
less
fewer persons in addition to the
4operator and is not owned or leased by a school or by a school bus contractor, it shall
5be insured by a policy providing property damage
coverage with a limit of not less
6than $10,000 and bodily injury liability coverage with limits
, as of the policy's
7effective date, equal to or greater than the minimum liability limits, as defined in s.
8344.01 (2) (am) of not less than $25,000 for each person, and, subject to the limit for
9each person, a total limit of not less than $50,000 for each accident.
SB386,5,2516
344.01
(2) (d) "Proof of financial responsibility" or "proof of financial
17responsibility for the future" means proof of ability to respond in damages for
18liability on account of accidents occurring subsequent to the effective date of such
19proof, arising out of the maintenance or use of a motor vehicle
, in
an the amount
, as 20of
the date that proof is furnished to the department, equal to or greater than the
21minimum liability limits $25,000 because of bodily injury to or death of one person
22in any one accident and, subject to that limit for one person, in the amount of $50,000
23because of bodily injury to or death of 2 or more persons in any one accident and in
24the amount of $10,000 because of injury to or destruction of property of others in any
25one accident.
SB386, s. 6
3Section
6. 344.15 (1) (intro.), (a) and (b) of the statutes, as affected by
2009
4Wisconsin Act 28, are consolidated, renumbered 344.15 (1) and amended to read:
SB386,6,165
344.15
(1) No policy or bond is effective under s. 344.14 unless
all of the
6following apply: (a) The policy or bond is issued by an insurer authorized to do an
7automobile liability or surety business in this state, except as provided in sub. (2)
.
8(b) The limits of liability under the, or unless the policy or bond
, as of the date of the
9accident, are equal to or greater than the minimum liability limits
is subject, if the
10accident has resulted in bodily injury or death, to a limit, exclusive of interest and
11costs, of not less than $25,000 because of bodily injury to or death of one person in
12any one accident and, subject to that limit for one person, to a limit of not less than
13$50,000 because of bodily injury to or death of 2 or more persons in any one accident
14and, if the accident has resulted in injury to or destruction of property, to a limit of
15not less than $10,000 because of injury to or destruction of property of others in any
16one accident.
SB386,7,219
344.33
(2) Motor vehicle liability policy. (intro.) A motor vehicle policy of
20liability insurance shall insure the person named therein using any motor vehicle
21with the express or implied permission of the owner, or shall insure any motor vehicle
22owned by the named insured and any person using such motor vehicle with the
23express or implied permission of the named insured, against loss from the liability
24imposed by law for damages arising out of the maintenance or use of the motor
25vehicle within the United States of America or the Dominion of Canada, subject to
1the
minimum liability following limits
, exclusive of interest and costs, with respect
2to each such motor vehicle
.:
SB386, s. 8
3Section
8. 344.33 (2) (a) of the statutes is created to read:
SB386,7,54
344.33
(2) (a) Twenty-five thousand dollars because of bodily injury to or death
5of one person in any one accident.
SB386, s. 9
6Section
9. 344.33 (2) (b) of the statutes is created to read:
SB386,7,87
344.33
(2) (b) Subject to the limit under par. (a) for one person, $50,000 because
8of bodily injury to or death of 2 or more persons in any one accident.
SB386, s. 10
9Section
10. 344.33 (2) (c) of the statutes is created to read:
SB386,7,1110
344.33
(2) (c) Ten thousand dollars because of injury to or destruction of
11property of others in any one accident.
SB386,7,2114
344.55
(1) (intro.) No motor vehicle may be used as a human service vehicle
15unless a policy of bodily injury and property damage liability insurance, issued by
16an insurer authorized to transact business in this state, is maintained thereon. The
17policy shall provide
property damage liability coverage with a limit of not less than
18$10,000. The policy also shall provide bodily injury liability coverage with limits
, as
19of the policy's effective date, of at least the minimum liability limits or, if greater, of
20not less than $75,000 for each person and, subject to such limit for each person, total
21limits as follows:
SB386,7,2524
631.43
(3) Exception. Subsection (1) does not affect the rights of insurers to
25exclude, limit
, or
restrict reduce coverage under s. 632.32 (5) (b)
or, (c) or
(f) to (j).
SB386,8,2019
632.32
(4) (title)
Required uninsured motorist, underinsured motorist, and
20medical payments coverages.
SB386,8,2323
632.32
(4) (a) (title)
Uninsured motorist.
SB386,9,6
1632.32
(4) (intro.) Every policy of insurance subject to this section that insures
2with respect to any motor vehicle registered or principally garaged in this state
3against loss resulting from liability imposed by law for bodily injury or death suffered
4by any person arising out of the ownership, maintenance, or use of a motor vehicle
5shall contain therein or supplemental thereto
the following provisions
for all of the
6following coverages:
SB386,9,149
632.32
(4) (a) 1.
Excluding a policy written by a town mutual organized under
10ch. 612, uninsured motorist coverage For the protection of persons injured who are
11legally entitled to recover damages from owners or operators of uninsured motor
12vehicles because of bodily injury, sickness, or disease, including death resulting
13therefrom, in limits of at least
$100,000 $25,000 per person and
$300,000 $50,000 14per accident.
SB386,9,1817
632.32
(4) (a) 2. In this paragraph, "uninsured motor vehicle" also includes any
18of the following:
SB386,9,2019
a. An insured motor vehicle if before or after the accident the liability insurer
20of the motor vehicle is declared insolvent by a court of competent jurisdiction.
SB386,9,2321
b. Except as provided in subd. 2. c., an unidentified motor vehicle, provided that
22an independent 3rd party provides evidence in support of the unidentified motor
23vehicle's involvement in the accident.
SB386,9,2424
c. An unidentified motor vehicle involved in a hit-and-run accident.
SB386,10,145
632.32
(4) (b)
Medical payments.
Medical To indemnify for medical payments
6coverage, or chiropractic payments or both in the amount of at least
$10,000 $1,000 7per person
for the protection of all persons using the insured motor vehicle from
8losses resulting from bodily injury or death. The named insured may reject the
9coverage. If the named insured rejects the coverage, it need not be provided in a
10subsequent renewal policy issued by the same insurer unless the insured requests
11it in writing. Under the medical or chiropractic payments coverage, the insurer shall
12be subrogated to the rights of its insured to the extent of its payments. Coverage
13written under this
subdivision paragraph may be excess coverage over any other
14source of reimbursement to which the insured person has a legal right.
SB386,10,2219
632.32
(4) (a) 3.
Unless an insurer waives the right to subrogation, insurers 20Insurers making payment under
any of the coverages under this subsection the
21uninsured motorists' coverage shall, to the extent of the payment, be subrogated to
22the rights of their insureds.
SB386,11,10
1632.32
(4m) Underinsured motorist coverage. (a) An insurer writing policies
2that insure with respect to a motor vehicle registered or principally garaged in this
3state against loss resulting from liability imposed by law for bodily injury or death
4suffered by a person arising out of the ownership, maintenance, or use of a motor
5vehicle shall provide to one insured under each such insurance policy that goes into
6effect after October 1, 1995, that is written by the insurer and that does not include
7underinsured motorist coverage written notice of the availability of underinsured
8motorist coverage, including a brief description of the coverage. An insurer is
9required to provide the notice required under this subdivision only one time and in
10conjunction with the delivery of the policy.
SB386,11,1611
(b) Acceptance or rejection of underinsured motorist coverage by a person after
12being notified under par. (a) need not be in writing. The absence of a premium
13payment for underinsured motorist coverage is conclusive proof that the person has
14rejected such coverage. The rejection of such coverage by the person notified under
15par. (a) shall apply to all persons insured under the policy, including any renewal of
16the policy.
SB386,11,2017
(c) If a person rejects underinsured motorist coverage after being notified under
18par. (a), the insurer is not required to provide such coverage under a policy that is
19renewed to the person by that insurer unless an insured under the policy
20subsequently requests such underinsured motorist coverage in writing.
SB386,11,2321
(d) If an insured who is notified under par. (a) accepts underinsured motorist
22coverage, the insurer shall include the coverage under the policy just delivered to the
23insured in limits of at least $50,000 per person and $100,000 per accident.
SB386,12,103
632.32
(5) (f)
No A policy may provide that, regardless of the number of policies
4involved, vehicles involved, persons covered, claims made, vehicles or premiums
5shown on the policy, or premiums paid, the limits for any
uninsured motorist
6coverage or underinsured motorist coverage under the policy may not be added to the
7limits for similar coverage applying to other motor vehicles to determine the limit of
8insurance coverage available for bodily injury or death suffered by a person in any
9one accident
, except that a policy may limit the number of motor vehicles for which
10the limits for coverage may be added to 3 vehicles.
SB386,12,1913
632.32
(5) (g)
No A policy may provide that the maximum amount of uninsured
14motorist coverage or underinsured motorist coverage available for bodily injury or
15death suffered by a person who was not using a motor vehicle at the time of an
16accident is
any the highest single limit of uninsured motorist coverage or
17underinsured motorist coverage, whichever is applicable, for any motor vehicle with
18respect to which the person is insured
, except that a policy may limit the number of
19motor vehicles for which coverage limits may be added to 3 vehicles.
SB386,13,222
632.32
(5) (h)
No A policy may provide that the maximum amount of medical
23payments coverage available for bodily injury or death suffered by a person who was
24not using a motor vehicle at the time of an accident is
any the highest single limit of
25medical payments coverage for any motor vehicle with respect to which the person
1is insured
, except that a policy may limit the number of motor vehicles for which
2medical payments coverage limits may be added to 3 vehicles.
SB386, s. 35
3Section
35. 632.32 (6) (g) of the statutes, as affected by
2009 Wisconsin Act 28,
4is renumbered 632.32 (5) (i), and 632.32 (5) (i) (intro.), as renumbered, is amended
5to read:
