631.36 Termination of insurance contracts by insurers.

530 words·~2 min read·/wi/chapter-631/631-36

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Scope of application.

(a)General. Except as otherwise provided in this section or in other statutes or by rule under par.

(c), this section applies to all contracts of insurance based on forms that are subject to filing under s. 601.58 or 631.20 .

(b)Contracts more favorable to policyholder. The contract may provide terms more favorable to policyholders than are required by this section.

(c)Exemption by rule. The commissioner may by rule totally or partially exempt from this section classes or parts of classes of insurance contracts if the policyholders do not need protection against arbitrary or unannounced termination.

(d)Other rights. The rights provided by this section are in addition to and do not prejudice any other rights the policyholder may have at common law or under other statutes.

(e)Rescission or reformation. This section does not apply to the rescission or reformation of any insurance contract.

(2)Midterm cancellation.

(a)Permissible grounds. Except as provided by par.

(c)and sub.

(3)and s. 655.24

(b), no insurance policy may be canceled by the insurer prior to the expiration of the agreed term except for failure to pay a premium when due or on grounds stated in the policy, which must be comprehended within one of the following classes:

1. Material misrepresentation;

2. Substantial change in the risk assumed, except to the extent that the insurer should reasonably have foreseen the change or contemplated the risk in writing the contract;

3. Substantial breaches of contractual duties, conditions or warranties; or

4. Attainment of the age specified as the terminal age for coverage, in which case the insurer may cancel by notice under par.

(b)accompanied by a tender of a proportional return of premium.

(b)Notice. No cancellation under par.

(a)is effective until at least 10 days after the 1st class mailing or delivery of a written notice to the policyholder.

(c)New policies. Paragraphs

(a)and

(b)do not apply to any insurance policy that has not been previously renewed if the policy has been in effect less than 60 days at the time the notice of cancellation is mailed or delivered. No cancellation under this paragraph is effective until at least 10 days after the 1st class mailing or delivery of a written notice to the policyholder. Subsections

(6)and

(7)do not apply to such a policy.

(3)Anniversary cancellation or alteration. A policy may be issued for a term longer than one year or for an indefinite term with a clause providing for cancellation by the insurer in the manner provided in sub.

(a)for nonrenewals, except the notice must be given at least 60 days prior to any anniversary date and an insurer may not cancel a policy solely because of the termination of an insurance marketing intermediary’s contract with the insurer unless the insurer complies with sub.

(4m). The clause may also provide for alteration of the terms or premium by the insurer as provided in sub.

(c), except the clause must then permit cancellation by the policyholders as provided in sub.

(c).