The Affordable Auto Insurance Act will provide Wisconsin consumers greater choice while relieve the auto insurance burden on many Wisconsin families, especially low and middle income families. 

The proposal retains much of the reforms enacted last year in Act 28 including: mandatory automobile insurance; the increase in bodily injury coverage to $50,000/$100,000/$15,000; the prohibition of the use of reducing clauses. Under this proposal, no state in the nation will have higher protections for consumers; nevertheless, it provides consumers more affordable coverage options than current law.

The proposal makes the following modifications:

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  • Prohibits stacking of insurance coverages. 
  • Changes the definition of underinsured motor vehicle to compare the at-fault driver’s liability limit with the insured’s underinsured (UIM) limit to determine if the at-fault driver is underinsured.
  • Clarifies that a renewal with altered terms notice is not required if the increase in premium is the result of a statutory change.
  • Establishes uninsured (UM)/underinsured (UIM) limits equal to the bodily injury limits of $50,000/$100,000.
  • Allows for UIM coverage to be elective rather than mandatory.
  • Allows medical payments coverage to be determined by the consumer.
  • Repeals the indexing feature of liability limits.
  • Clarifies that the requirement of UM/UIM offer does not apply to umbrella/excess policies.
  • Provides that after the six month initial period of mandatory insurance, insurers can take into account the factor of not having insurance in place when underwriting.

Chief Justice Abrahamson started with a call for votes to see if there were four votes to kill the petition.  She did not want to waste the justice’s time if there was not consensus to move forward.  The justices voted unanimously to continue forward.

Chief Justice Abrahamson then started to proceed on the points of the document that were in contention (the bold) items on the Court v. State Bar draft. After a somewhat lengthy discussion on the preamble language Justice Crooks made a motion.

Justice Crooks’ motion was to: agree in “essence” or “concept” with the court’s proposal; house the administration in OLR and include a sunset.  Others pointed out that there were sections in dispute in the draft, i.e. the insurance section.  They understood all those matters would be addressed later.  This motion failed 5-2 with Crooks and Roggensack supporting.

Justice Abrahamson then split the motion into three separate parts:

o      Agree in “essence” or “concept” to move forward with the draft – Approved unanimously

o      Place administration in OLR..failed 5-2 (Crooks & Roggensack) (The Chief appears very opposed to OLR administration)

o      Place a sunset provision..passed 5-2 (Abrahamson & Bradley)

There was unanimous vote on “having trepidations” with the State Bar administering the program.

Next session, staff will provide a list of what the court will discuss.  The staff will share with all parties a comparison document outlining issues in bold which need to be reconciled from the court proposal, i.e. insurance section.

Overall, the only thing determined was they are not killing the petition at this time, justices are free to support or reject the final document and the sections in question have to be addressed.  Not much substance but they will continue to move forward.  There was a sense, at least on my part, from the public hearing portion, that the path of least resistance for most of the justices is to address the concerns of the industries (banks, realtors, insurance, CPA’s) and move forward.

Mary Richards did a great job of outlining industry concerns and many thanks to her.  Also, a gentleman from State Farm reinforced our message and did a good job.

Representative Don Friske (R – Merrill) announced Friday he will not pursue re-election for the 35th Assembly District in November. He will continue to serve the remainder of his current legislative term through 2010.  This leaves another open seat in the State Assembly.  Other members announcing retirements include:  Rep. Gary Sherman (D-Port Wing) who was appointed by Governor Doyle to the State Appeals Court; Rep. Tom Lothian (R-Williams Bay); Rep. Brett Davis (R-Oregon) who is running for the GOP nomination for Lt. Governor; Rep. Roger Roth (R-Appleton) who is running for Congress in the 8th CD; Rep. John Townsend (R-Fond du Lac); Rep. Leah Vukmir (R-Wauwatosa) who is running for the State Senate in the 5th District; Rep. Jeff Wood (I-Chippewa Falls) and Rep. Rich Zipperer (R-Pewaukee) who is running for State Senate in the 33rd District.  Also, it is likely Rep. Mark Gundrum (R-New Berlin) is likely going to be elected circuit court judge in Waukesha County in the April 2010 election.

Senators not seeking re-election include;   Sen. Ted Kanavas (R-Brookfield); Senator Alan Lasee (R-Rockland) and Sen. Judy Robson (D-Beloit).

OPINION: http://online.wsj.com/article/SB10001424052748703862704575100004067589846.html

http://www.legis.state.wi.us/insession/insessiondocs/Votes/av0423.htm

Democrat Fred Kessler from Milwaukee attempted to indefinately postpone the measure…he argued many of our points about the lack of need for this new cause of action and the inappropriateness of the 7 year statute of limitations.

outline-of-coverage-fl-law         property-and-casualty-subgroup-draft-modeled-after-mn-law