We are pleased to bring you the most recent edition of the Wisconsin Law Quarterly. To view the issue, please click here.
As discussed in the 2009 First Quarter Newsletter, the 2009 Wisconsin Budget contained several extremely relevant possible changes to, amongst other things, motor vehicle insurance law. Since that time, the Budget has been passed and several changes did indeed take effect. These changes include, but are certainly not limited to, permitting stacking of insurance policies, a ban on reducing clauses, mandated purchase of liability insurance for all drivers, increased required minimum coverages, and changes to certain aspects of underinsured motorist coverage. These changes affect both insurance companies and Wisconsin drivers alike.
Perhaps the most prominent change is the repeal of a 14-year statutory provision that effectively banned insureds from stacking auto insurance policy limits for uninsured and underinsured motorist coverage. Wis. Stat. § 632.32(6)(d) and 632.32(6)(e) ban insurers from inserting anti-stacking provisions in auto policies, as long as the number of vehicles owned by the insured is three or less.
In addition, the Budget instituted a ban on reducing clauses, further favoring insureds. Newly renumbered Wis. Stat. § 632.32(6)(g) states that insurance companies can no longer deduct the amount of insurance carried by a negligent driver from the uninsured or underinsured coverage purchased by an injured policyholder. One should also note that the new ban on reducing clauses also applies to benefits from workers' compensation and disability insurance.
In June 2010 Wisconsin will join the majority of states (excluding now only New Hampshire) in requiring operators of motor vehicles in Wisconsin to have auto liability coverage. The new law will require drivers to carry proof of insurance with them whenever driving, which must be provided upon demand to any police officer. The new budget act also prohibits insurers from categorizing people who have not previously had insurance in a high-risk category.
Not only will operators of motor vehicles be obligated to obtain auto liability policies but the statutory minimum coverages will also be increased. Wis. Stat. § 344.01(2)(am)2. generally requires minimum coverages of $50,000/$100,000 with $15,000 in property damage coverage. In addition, underinsured motorist coverage will be mandated with a minimum of $100,000/$300,000 in coverage.
These are just some selected highlights of changes that will be taking effect over the next several months which will require both attorneys and clients to adapt. Our firm is committed to remaining abreast with these changes and would encourage you to contact us if you would like to discuss these changes in more detail or if you would like us to present an educational seminar for you regarding these changes.