Date:July 5, 2007
To:All Property and Casualty Insurers
From:Sean Dilweg, Commissioner of Insurance
Subject:REVISED - Changes to s. Ins 6.77, Wis. Adm. Code Regarding Underinsured and Uninsured Motorist Coverages

Section Ins 6.77, Wis. Adm. Code, has been revised and will take effect July 1, 2007. This bulletin is to clarify the types of policies that are subject to the requirements of s. 632.32 (4) and (4m), Wis. Stat., regarding uninsured motorist (UM) and underinsured motorist (UIM) coverages.

The revised rule does not require that umbrella or excess liability policies include UM coverage. This has not changed from the previous rule. UM coverage is required to be included in commercial liability and commercial automobile policies if those policies provide coverage for owned motor vehicles and then must provide UM coverage for both owned and non-owned motor vehicles. Commercial liability policies that only provide coverage for non-owned motor vehicles are not required to include UM coverage.

The revised rule exempts commercial liability, commercial automobile, umbrella liability, and excess liability policies from the requirements of s. 632.32 (4m), Wis. Stat. However, these types of policies are required to give notice of whether or not UIM is available from the insurance company but does not require that the company write UIM coverage.

For new business, the written disclosure must be on the application or, if no application is used, must be with the delivery of the policy. No insured signature is required and no further disclosure is required for subsequent renewal of, or change to, the policy. The disclosure requirement of the availability or non-availability of UIM coverage applies to policies issued on or after November 28, 2007.

For renewal business, the written disclosure is required to be provided only one time and in conjunction with either the notice of, or the delivery of, the first renewal of each policy occurring on or after October 29, 2007. No further disclosure is required for subsequent renewal of, or change to, the policy.

The attached chart (opens in new window) sets forth the types of policies and requirements for providing coverage and/or disclosure of availability of UM and UIM coverages.

The rule Order is on our Web site at: http://oci.wi.gov/rules/0677fn07.pdf (opens in new window). The revised version of the entire rule is available at: http://www.legis.state.wi.us/rsb/code/ins/ins006.pdf (opens in new window).

If you have any questions, you may contact Rhonda Peterson, Property and Casualty Section Chief, via telephone at (608) 267-7186 or via e-mail at rhonda.peterson@wisconsin.gov.