Department of Transportation Law Change - Insurance

Thursday, July 21st, 2011

Department of Transportation Law Changes-Insurance Related

Wisconsin State decrease the motor vehicle liability minimum limits to $25,000 because of bodily injury to or death of one person in any one accident and, subject to such limit for one person, in the amount of $50,000 because of bodily injury to or death of two or more persons in any one accident, and $10,000 because of injury to or destruction of property of others in any one accident.

The mandatory insurance requirements or Wisconsin State have not changed.

Subchapter IV of Chapter 632, Wisconsin State, is amended as follows:

• Uninsured Motorist coverage limits have decreased to a minimum of $25,000 per person and $50,000 per accident.
• Underinsured Motorist coverage is no longer mandatory. Coverage limits have been decreased to a minimum of $50,000 per person and $100,000 per accident. Notice of coverage availability is required with the delivery of the policy. Coverage may be rejected.
• Minimum Medical Payments coverage limits have been decreased to at least $1,000 per person. Coverage may be rejected.
• Umbrella or excess liability policies that insure, with respect to a motor vehicle, against loss resulting from liability imposed by law for bodily injury or death of a person arising out of the ownership, maintenance or use of a motor vehicle are no longer required to offer Uninsured and Underinsured Motorist coverage.
• Stacking of Uninsured and Underinsured Motorist limits, up to 3 motor vehicles, is no longer required. Anti-stacking language is allowed.
• Stacking of Medical Payments limits, up to 3 motor vehicles, for a person who was not using a motor vehicle at the time of an accident is no longer required.
• A policy may provide that the limits under the policy for Uninsured Motorist or Underinsured Motorist coverage for bodily injury or death resulting from any one accident may be reduced by.
•  Amounts paid by or on behalf of any person or organization that may be legally responsible for the bodily injury or death for which the payment is made, amounts paid or payable under any worker's compensation law, and amounts paid or payable under any disability benefits laws.
• An insurer is no longer prohibited from placing an applicant or insured in a high-risk category on the basis that the applicant or insured has not previously had motor vehicle insurance.

It should also be noted that the above provisions, where applicable, do result in a renewal with altered terms. Notification requirements under s. 631.36 (5), Wis. Stat., apply because the provisions are on less favorable terms, as contemplated under the statute for such notice.