CHAPTER 631
INSURANCE CONTRACTS GENERALLY
SUBCHAPTER I
GENERAL RULES
631.01 Application of statutes.
631.03 Insurance in mutuals.
631.05 Oral contracts of insurance and binders.
631.07 Insurable interest and consent.
631.08 Mistakes in contracts.
631.09 Knowledge and acts of agents.
631.11 Representations, warranties and conditions.
631.13 Incorporation by reference.
631.15 Contract rights under noncomplying policies.
631.17 Written reason for coverage denial.
SUBCHAPTER II
APPROVAL OF FORMS
631.20 Filing and approval of forms.
631.21 Explicit approval required.
631.22 Consumer insurance policy readability.
631.23 Authorized clauses for insurance forms.
631.24 Credit life and disability insurance.
631.27 Rules of law as provisions of contracts.
631.28 Notice of right to file complaint.
SUBCHAPTER III
SPECIFIC CLAUSES IN CONTRACTS
631.31 Clauses required to be on first page.
631.36 Termination of insurance contracts by insurers.
631.37 Special cancellation provisions.
631.39 Renewals in affiliates.
631.41 Policies jointly issued.
631.43 Other insurance provisions.
631.45 Limitations on loss to be borne by insurer.
631.51 Dividends on policies.
631.61 Group and blanket insurance.
631.65 Assessable policies.
631.69 Insurance written in connection with finance plans.
631.81 Notice and proof of loss.
631.83 Limitation of actions.
631.85 Appraisal or arbitration.
631.89 Restrictions on use of genetic test results.
631.90 Restrictions on use of tests for HIV.
631.93 Prohibited provisions concerning HIV infection.
631.95 Restrictions on insurance practices; domestic abuse.
Ch. 631 Cross-reference
Cross-reference: See definitions in ss.
600.03 and
628.02.
GENERAL RULES
631.01
631.01
Application of statutes. 631.01(1)(1)
General. This chapter and ch.
632 apply to all insurance policies and group certificates delivered or issued for delivery in this state, on property ordinarily located in this state, on persons residing in this state when the policy or group certificate is issued, or on business operations in this state, except:
631.01(1)(b)
(b) On business operations in this state if the contract is negotiated outside this state and if the operations in this state are incidental or subordinate to operations outside this state, unless the contract is for a policy of insurance to cover a warranty, as defined in s.
100.205 (1) (g), in which case the provisions set forth in sub.
(4m) apply; and
631.01(2)
(2) Reinsurance. Sections
631.05,
631.15 (1),
631.41,
631.45 and
631.81 apply to contracts used in reinsurance; the commissioner may specify by rule that reinsurance contracts are subject to other provisions of this chapter and ch.
632 upon a finding that the interests of Wisconsin insureds, of ceding insurers domiciled in this state or of the public in this state so require.
631.01(3)
(3) Ocean marine insurance. Sections
631.03 to
631.09,
631.15 (1) and
(4),
631.20 (1),
631.27,
631.41 to
631.51,
631.64 to
631.81 and
631.85 apply to ocean marine insurance; the commissioner may specify by rule that ocean marine contracts are subject to other provisions of this chapter upon a finding that the interests of Wisconsin insureds or creditors or of the public in this state so require.
631.01(4)
(4) Annuities and group policies for eleemosynary institutions. This chapter and ch.
632 do not apply to annuities or group policies that are provided on a basis as uniform nationally as state statutes permit to educational, scientific research, religious or charitable institutions organized without profit to any person, for the benefit of employees of such institutions. The commissioner may by order subject such contracts issued by a particular insurer to this chapter or ch.
632 or any portion of those provisions upon a finding, after a hearing, that the interests of Wisconsin insureds or creditors or the public of this state so require.
631.01(4m)
(4m) Rustproofing warranties insurance. An insurer issuing a policy of insurance to cover a warranty, as defined in s.
100.205 (1) (g), shall comply with s.
632.18 and the policy shall be on a form approved by the commissioner under s.
631.20.
631.01(5)
(5) Other exceptions. The commissioner may by rule exempt any class of insurance contract or insurer from any or all of the provisions of this chapter and ch.
632 if the interests of Wisconsin insureds or creditors or of the public of this state do not require such regulation.
631.01 Annotation
A stop-loss policy that provided that, in case of a catastrophic medical case, the employer would only be responsible for paying covered medical costs on an individual case up to the stop-loss amount with the insurer paying the costs above that amount, was not a contract of reinsurance exempt from this section. Edstrom Industries, Inc. v. Companion Life Insurance Co.,
516 F.3d 546 (2008).
631.02
631.02
Definition. “Interest of the insured," when used in an insurance policy, includes the interest of the named insured and of any other person with whom the named insured holds the insured property in joint tenancy or as marital property.
631.03
631.03
Insurance in mutuals. Any mutual under ch.
611 or
612 and any service corporation under ch.
613 may issue policies to any public or private corporation, board or association or to any unit of government, in any place in this state or elsewhere where it is authorized to do an insurance business. Any public or private corporation, board or association or unit of government in this state that is authorized to acquire insurance may make applications, enter into agreements for and hold policies in any mutual insurer or service corporation authorized under ch.
611,
612,
613 or
618.
631.03 History
History: 1975 c. 375.
631.05
631.05
Oral contracts of insurance and binders. No provision of chs.
600 to
646 and
655 may be interpreted to forbid an oral contract of insurance or issuance of a written binder. The insurer shall issue a policy as soon as reasonably possible after issuance of any binder or negotiation of an oral contract.
631.07
631.07
Insurable interest and consent. 631.07(1)(1)
Insurable interest. No insurer may knowingly issue a policy to a person without an insurable interest in the subject of the insurance.
631.07(2)
(2) Consent in life and disability insurance. Except under sub.
(3), no insurer may knowingly issue an individual life or disability insurance policy to a person other than the one whose life or health is at risk unless the latter has given written consent to the issuance of the policy. Consent may be expressed by knowingly signing the application for the insurance with knowledge of the nature of the document, or in any other reasonable way.
631.07(3)
(3) Cases where consent is unnecessary or may be given by another. 631.07(3)(a)(a)
Consent unnecessary. A life or disability insurance policy may be taken out without consent in any of the following cases:
631.07(3)(a)1.
1. A person may obtain insurance on a dependent who does not have legal capacity.
631.07(3)(a)2.
2. A creditor may at the expense of the creditor obtain life or disability insurance on the debtor in an amount reasonably related to the amount of the debt.
631.07(3)(a)3.
3. A person may obtain a life or disability insurance policy on members of the person's family living with or dependent on the person.
631.07(3)(a)3m.
3m. A person may obtain a disability insurance policy on a child placed for adoption, as defined in s.
632.896 (1) (c), with the person.
631.07(3)(a)4.
4. A person may obtain a disability insurance policy on others that would merely indemnify against expenses the policyholder would be legally or morally obligated to pay.
631.07(3)(am)
(am)
Insurance for persons in international public service. The commissioner may promulgate rules permitting issuance of insurance for a limited term on the life or health of a person serving outside the continental United States in the public service of the United States, provided the policyholder is closely related by blood, marriage or adoption to the person whose life or health is insured.
631.07(3)(b)
(b)
Consent given by another. Consent may be given by another in the following cases:
631.07(3)(b)1.
1. A parent, a guardian of the person, or a person having legal custody as defined in s.
48.02 (12) may consent to the issuance of a policy on a dependent child.
631.07(3)(b)2.
2. A grandparent may consent to the issuance of life or disability insurance on a grandchild.
631.07(3)(b)3.
3. A court of general jurisdiction may give consent on ex parte application on the showing of any facts the court considers sufficient to justify such insurance.
