Wilson Mutual Insurance v. Risler
798 N.W.2d 898
Wis. Ct. App.2011Background
- Risler's umbrella policy with Wilson Mutual expired May 29, 2007 for nonpayment of renewal premium.
- Wilson Mutual failed to provide required notice of nonrenewal or renewal nonpayment per Wis. Stat. § 631.36(4)(a).
- Accident occurred August 31, 2008; umbrella coverage status was disputed after auto policy claims were resolved.
- Circuit court held policy remained in effect due to lack of notice and that renewal would extend for one year; accident more than one year after expiration.
- Court of appeals held the remedy is renewal for expiring term length; Risler’s renewal right expired May 29, 2008, so no umbrella coverage on the date of the accident.
- Order denying declaratory judgment reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Effect of no-renewal notice on coverage | Risler retains renewal rights under § 631.36(4)(a). | No perpetual coverage; renewal right limited to expiring term. | Renewal right expires with the expiring term; no coverage after expiry. |
| Proper remedy for § 631.36(4)(a) violation | Violation permits renewal for an additional term. | Remedy is renewal for expiring term length only. | Remedy is renewal for the expiring term; coverage ends after that period. |
| Effect of policy language vs. statute | Policy allows ongoing renewal without notice | Statute governs; policy language cannot create perpetual renewal. | Statute Magyar governs; no perpetual renewal beyond expiring term. |
Key Cases Cited
- Magyar v. Wisconsin Health Care Liab. Ins. Plan, 242 Wis. 2d 491 (2001) (violation of nonrenewal notice leads to renewal for expiring term, not perpetual coverage)
- Tri- City Nat’l Bank v. Federal Ins. Co., 268 Wis. 2d 785 (Wis. Ct. App. 2004) (rejects absurd results and supports Magyar approach)