Your Friend in the Insurance Business!
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Wisconsin Budget Bill Act 28 These changes to Wisconsin insurance regulation were slipped into the 2009 budget bill with out the benefit of separate hearings of input from citizens and industry. The changes are likely a nod to the nearly one quarter million dollars in campaign contributions by trial lawyers to Governor Doyle. The coverage increases mandated will make more insurance money available for lawsuits even though studies show that the prior limits were sufficient to cover 90% of claims. At Schmitz Insurance we strongly encourage our insureds to carry as high limits of coverage as they can reasonably afford to provide them with peace of mind and protection of their assets. We don't believe in "one size fits all" insurance mandates as everyone's situation is unique and best judged on an individual basis. Fortunately they did allow the option to "opt-out" of the uninsured/underinsured motorist coverage for umbrella policies but companies will be forced to add the coverage automatically and raise your premium until they receive the signed rejection from you. So if you get your umbrella policy and the premium is way up and you decide you don't want the extra UM/UIM coverage, please contact us for a rejection form to have it removed. So far premiums for this coverage seem to be around $30 per car per year which will nearly double the premium for an umbrella policy with three cars. On real problem area is with motorcycles on medical payments, now mandated at $10,000 limits (was $1,000) with stacking. Stacking means if you have additional vehicles, you can multiply the limit by the number of vehicles up to three. Of course all this comes at a cost to you. Medical payments pays medical bills for you and your passengers regardless of fault. On motorcycles this is much more costly than on automobiles. We have see premiums for the new limits in excess of $100 per year per bike. You do have the option to reject it entirely but then you have no medical payments coverage. In most cases, this coverage duplicates you regular individual or group health insurance coverage so people would take an amount sufficient to cover their deductible. Now it is all or nothing, your choices have been severely limited by the Governor and state legislators. If you would like have your authority back to decide for yourself what coverage you want and keep your premiums down, we suggest you contact Governor Doyle phone number (608) 266-1212 and your contact your state legislators. The links just provided will take you to an easy to use online form that you just type your message and just click to send. It should be noted that our 1st district representatives, Senator Lasee and Representative Bies voted against the budget, but you could encourage them to sponsor legislation to change these restrictions that take away your choice and raise your premium. The "stacking" provision is particularly difficult as it causes your coverage amount to vary based on the number of vehicles insured instead of your choice of limits. Outline of changes to auto insurance from the 2009 Wisconsin Budget Bill Act 28 passed. Auto Insurance 1. Minimum Limits (1-1-10 for SR-22, 6-1-10 all others) a. $50,000 Bodily Injury per person (was 25,000) b. $100,000 Bodily Injury per accident (was 50,000) c. $15,000 Property Damage (was 10,000) 2. Auto insurance mandatory (1-1-10) a. Must have insurance ID card when stopped by police. 3. Uninsured motorists (11-1-09) a. Minimum Limits 100/300 (was 25/50) b. Stack limits from up to three vehicles. c. No offset for other benefits (work comp, third party payments) 4. Underinsured motorist (11-1-09) a. Minimum Limits 100/300 b. Can no longer reject coverage c. See 3.b and 3.c above 5. Medical Payments (11-1-09) a. Minimum Limit $10,000 (was $1,000) b. Can still reject entirely c. Stack limits from up to three vehicles Umbrella Liability Insurance 1. Companies must offer Uninsured Motorist/Under Insured Motorist coverage in writing – one time. (11-1-09) Coverage can be rejected in writing by insured. Individual Health Insurance 1. Uniform App for individual medical (1-1-10) 2. Pre-existing conditions limited to 12 months prior (1-1-10) 3. Pre-existing conditions waiting limited to 12 months after effective date unless specific rider applies (1-1-10) 4. Independent review option for claim denials – now no fee 5. Can’t deny claim because liability insurance applies 6. Dependants covered up to age 27 using same rate as those under age 18 (1-1-10) a. Must be not married, not eligible for employer group insurance at same or lower contribution amount. b. Coverage over age 27 if called to Guard/Reserve while full time student under age 27 c. Annual documentation may be required to prove eligibility 7. Autism coverage mandated (11-1-09) a. $50,000 minimum, 30-35 hrs of care per week for 4 years. b. $25,000 non-intensive level services per year. 8. Contraceptives and associated services coverage mandated (1-1-10)
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