FAQ’s related to Implementation of Act 28 Auto Insurance changes. August 19, 2009
Note: UM is Uninsured Motorists Coverage & UIM is Underinsured Motorists Coverage.
1. Will the required coverages for increased liability limits, UM and UIM and the
removal of anti stacking and reducing clauses, require renewal with altered terms
notices under s. 631.36(5), Stats?
No – The renewal with altered terms notice is not required for the Act 28 law changes
that result in changes to the insurance contract (e.g., increase in UM/UIM limits,
stacking up to three limits, increase in med pay limits) because the renewal is not “on
less favorable terms.” However, a renewal with altered terms notice is required if the
changes increase the premium 25% or more. The notice is required even though the
basis for the increase in premiums is the statutory changes that are not “on less
favorable terms.”