Subject: FAQ concerning changes
In order to clarify many of the questions arising from the Umbrella changes for WI Act 28, we wanted to provide you with the following FAQ document.
- If I accept the Umbrella UM/UIM coverage, when will the coverage be added?
Answer: The accepted coverage will be added at you next renewal occurring on or after 11/1/2009. For example, if an Umbrella policy renews in July 2010, then the coverage will be added in July 2010. - If I do not send in the rejection form for Umbrella UM/UIM before their next renewal is processed, will the coverage be added?
Answer: If you do not respond, the coverage will be added at your next renewal occurring on or after 11/1/2009. The law indicates that we must have a signed rejection form for the customer to not receive the coverage. However, if the renewal has already been processed before the mass mailer was sent, coverage is assumed until rejection form is received. In this situation, insured has 30 days to send back rejection form before policy is pro-rated with applicable cost of UM/UIM premium. - Does the Umbrella UM/UIM coverage apply per Umbrella policy or per vehicle?
Answer: The Umbrella UM/UIM coverage apply per Umbrella policy and not per vehicle (no matter what kind of vehicle). - What limit selections are most insurance companies offering for Umbrella UM/UIM?
Answer: The limit most companies are offering for Umbrella UM/UIM is 100/300, no matter what Auto UM/UIM limits they currently have. - Is the UM/UIM stackable on the Umbrella policy?
Answer: Yes. UM/UIM coverage on the Umbrella and the Auto policy are stackable up to three vehicles maximum. - What is the cost for Umbrella UM/UIM coverage charged by most companies?
Answer: If you accept Umbrella UM coverage, the additional premium will be roughly $120. If you accept Umbrella UIM coverage, the additional premium will be $180. If you accept both UM and UIM coverage, the additional premium will be $300. This will vary based on each individual company you are insured with. - Will the Umbrella policyholder have to choose UM/UIM coverage at subsequent renewals?
Answer: No, you need only accept/reject once. - Was the Umbrella UM/UIM mass mailer sent to all Umbrella policyholders, no matter what their renewal date may be?
Answer: Yes. All companies should be sending out a letter informing you of the new law changes. - Do both UM and UIM need to be rejected or accepted?
Answer: Yes. Each is a separate coverage and needs a separate response.
We will continue to provide you with timely updates, including more specifics on what you will see and experience.
If you would like further information or you have questions, please contact your agent at any time.