Tsunami in WisconsinBuried in the bowels of the biennium budget bill and passed by the legislature on June 30 are major changes to the state’s auto insurance law. The insurance industry is scrambling to digest the changes, a challenge that is complicated by multiple effective dates mandated in the legislation. The changes to UM/UIM carry an effective date of November 1: mandatory coverage at $100/300, stacking allowed, reducing clauses prohibited, liberalization of hit & run, and a required offering of excess UM/UIM on all umbrellas. New liability limits become effective January 1 for policies with SR22 filings and June 1 for those without. Compulsory auto insurance goes into effect on June 1, 2010. Carriers have not had time to promulgate rate increases for the November renewals which have already gone out. Expect the confusion to continue for the next year and perhaps beyond. The Legislature now appears to be concerned about the impact these mandates will have on the affordability of insurance. The proposed solution? It is considering a bill that would ban Zip Code rating of auto in the state. According to the proponents, it will more equitably spread the increased cost of insurance over drivers in the entire state. Agents throughout the Midwest should say a short prayer of their counterparts in Wisconsin; it will be a bumpy ride for Wisconsin agents the foreseeable future.
Note to Wisconsin Agents: One of my December classes is a three-hour section on the ramifications of the new auto law. I am presenting it at six locations around the state. These classes will fill up and seating is limited. Reserve your spot early. Click here for a flyer. We’re Going GreenNew liability exposures are popping up all over. “Net Metering” is one facing Midwest agents as our society turns a darker shade of green. Utility customers – both commercial and personal – are installing renewable energy sources, such as wind and solar generators, to reduce their cost of energy. In many states, these customers are also allowed to feed excess electricity into the grid and receive a credit for it. The Public Service Commission in some of these states is requiring evidence of liability coverage; there is a small risk of causing property damage or electrocuting a lineman. We discussed it in the Going Green seminars I presented last month and I learned some carriers will add the coverage at little cost while others find their carriers want no part of it. Perhaps it would be a good idea to learn a little more about Net Metering (do a Google search) and then poll your carriers in advance to see how they would respond.
Ponzi ProtectionIt seems F. Scott Fitzgerald was right when he said, “The rich are different from you and me.” It appears some of the rich get their Ponzi losses covered under their Homeowners policy. According to a article in National Underwriter, AIG (now Chartis) has reimbursed hundreds of policyholders who suffered Madoff-related losses. Their policy included a coverage called Fraud Safeguard Events and protects against “loss of money, securities, or other property resulting directly from fraud, embezzlement, or forgery.” According to the article, other carriers include a comparable coverage in the Homeowners policies they provide for high-value dwellings insured in their preferred programs. I want to know if those carriers have also found a way to tap into taxpayer money to reimburse Madoff victims for their losses.
Keith Van Wyhe Many of you have worked over the years with Keith Van Wyhe, my younger brother. Keith manned our phones for a several years; agents who appreciated his assistance with registrations or on-line CE still inquire about him. Keith is bravely fighting a losing battle with cancer and his days are getting shorter. Anyone wishing to send a note of positive encouragement could forward it to Box 4130, Waukesha, WI 53187. It will be appreciated.
Quote of the Month“Of all sad words of tongue or pen, the saddest are these: ‘It might have been.’”
John Greenleaf Whittier
Who We Are:InsuranceCe is brought to you by The Van Wyhe Group, an education firm coaching agents in ways to add value to the insurance transaction. Agents who master adding value attract business rather than chase it.
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