The Wisconsin FAIR Plan





Contact Us: Phone: 414.291.5353 Fax: 414.291.5365   

OTHER PROCEDURES

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The following topics pertain to other procedures of the Wisconsin Insurance Plan.  You can scroll down the page to read each one or you can click and go directly to the topic. 

Renewals and Renewal Billing Procedures

Timely Premium Payments.  Cancels for Non-Payment.

Requesting Policy Changes.

Cancellation Requests

Return Premium Checks

Applying for a Different Policy when Another Policy is in Force.

Claim Reporting.

The 4th Year Non-Renewal.

 

RENEWALS AND RENEWAL BILLING PROCEDURE.

About 45 days prior to the renewal date, we send the customer and all other interests listed on the policy a renewal certificate (Declarations page) and a premium notice.  The premium notice offers a full-pay or 5-pay payment plan.  The 5-pay plan is five equal installments (no service fee).  The first payment is due before the renewal date.  The remaining four payments are billed about 55 days apart. With the installment plan, the total premium will be fully paid after about eight months of coverage. 

If the policy is cancelled before or on the policy expiration (renewal) date, the offer to renew is withdrawn.

 

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TIMELY PREMIUM PAYMENTS.  CANCELS FOR NON-PAYMENT.

Premium notices are mailed to the customer, the producer, mortgagees listed on the policy, and additional insureds listed on the policy.  We cannot bill only one party.

 

Installment Premiums (payments due during the policy period):

  • The premium due should be received in the Plan's office before the due date on the premium notice.  If not received, a cancellation notice for non-payment of premium is mailed.  

  • The policy remains in force if the premium due is either received in the Plan's office PRIOR TO the cancellation date or the payment envelope is postmarked by the Post Office PRIOR TO the cancellation date.  If a timely payment is received, a reinstatement notice is mailed indicating the policy remains in force.  

    • If the premium due is received but is not timely, it is not accepted.  The payment is returned.  There is no grace period.  The policy terminated on the cancellation date.  

    • If the premium due is never received, the policy terminated on the cancellation date.

  • If coverage is still needed after termination, a completely new submission is required.  We may require the full annual premium be paid as deposit with this new submission if the customer has had repeated late payments.

Renewal Premium (first payment due at the beginning of the renewal policy period):

  • The premium due should be received in the Plan's office before the due date on the premium notice.  This due date is about two weeks prior to the policy renewal date.  If not received, a cancellation/policy expiration notice is mailed.

  • The policy remains in force if the premium due is either received in the Plan's office PRIOR TO the cancellation/policy expiration date or the payment envelope is postmarked by the Post Office PRIOR TO the cancellation/policy expiration date.  

    • The premium due will still be accepted if it is received in the Plan's office within 30 days after the cancellation/policy expiration date.  The policy did terminate.  However, the policy will start again effective the day after the premium due is received in the Plan's office (subject to underwriting).  There is a lapse of coverage from the cancellation/policy expiration date until the new effective date.  

    • If the premium due is received in the Plan's office after this 30 day period, it is not accepted.  The payment is returned.  The policy terminated on the cancellation/policy expiration date.  The policy does not start again.

    • If the premium due is never received, the policy terminated on the cancellation/policy expiration date.

  • If coverage is still needed after termination, a completely new submission is required.  We may require the full annual premium be paid as deposit with this new submission if the customer has had repeated late payments.

 

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REQUESTING POLICY CHANGES.

Producers have no authority to bind coverage, change the provisions of a policy, or act on behalf of the Plan.  Producers must request policy changes by mail, e-mail, or fax only.  No telephone call changes are accepted.  We attempt to issue change endorsements within 3 business days after receipt of the request. 

 

Policy changes - including mortgagee changes - cannot be made if there is a pending cancellation or non-renewal of the policy.

 

We cannot change the location of the property to be insured after the policy has been in force for seven days.  In these cases, the customer should request a flat cancellation (see below) of the policy with the incorrect location and submit a new application, with deposit, for the correct location.  These are two separate transactions and the return premium of the cancelled policy cannot be used as the deposit on the new policy.  There is no coverage provided for the correct location during this process.  The correct location is insured only when a policy with the correct location is issued.   Exception:  If the incorrect location listed on Declaration page is due to the Plan's error, we will make the correction when notified and coverage will be provided for the correct location since policy inception.

 

 

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CANCELLATION REQUESTS

Cancellation requests must be signed by the customer.  ACORD forms may be used.  We may be able to back-date the cancellation up to 30 days.  To back-date longer than 30 days, we must have documentation of coverage elsewhere or documentation that the customer no longer has an insurable interest in the property (i.e. property sold).

 

A simple note from the customer to cancel the policy is acceptable (see below).  The note must request cancellation and state the effective date of the cancellation, the policy number to be cancelled, and the property location.  It must be signed by the policyholder and dated.  The signature must be readable or the policyholder's name printed under the signature.

 

Cancellation Request (items underlined must be added by the policyholder):

     To:  Wisconsin Insurance Plan

Please cancel policy number 012345H insuring the property at 123 Main St., Milwaukee effective January 10, 2010.

   X Pamela Policyholder    Date: January 5, 2010

 

We cannot honor a cancellation request after the policy period has ended or after a Notice of Cancellation or Notice of Non-Renewal has been issued.

 

Return premiums for cancellations are pro-rata.  We only retain premium for the time coverage was in force.  When we issue a return premium, you are required to return the commission received on that return premium.  This transaction is shown on your commission statement.

 

We cannot use the return premium from the cancellation of one policy as a premium payment or deposit premium for a different policy.  The cancellation of one policy and the application for another policy are two different transactions.

 

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RETURN PREMIUM CHECKS

All return premium checks issued by the Plan are payable to the Named Insured and are sent to the mailing address on the policy.  The Named Insured may request, prior to check issuance and in writing, that a specific check be payable to someone else or mailed to a different address.  We cannot issue these checks to the producer without the written permission of the Named Insured.

 

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APPLYING FOR A DIFFERENT POLICY WHEN ANOTHER POLICY IS IN FORCE

You may have a situation where the Plan is insuring a property under one type of policy, say a Dwelling Property policy, and the property has now become eligible for another type of policy, say a Homeowner policy.  The Plan cannot have two policies in force insuring the same property for the same customers.

 

You should submit in the same envelope:

  • A cancellation request for the existing policy with the cancellation date: "the date the new policy becomes effective".  

    • We will cancel the existing policy and return the unused premium to the customer. 

  • A new submission, with deposit and documentation of rejection, for the new policy.

    • We will issue the new policy.  If policy issuance is delayed, we will not cancel the existing policy.  The producer and customer are notified by mail.

     

We cannot use the return premium of the existing policy as the deposit on the new policy.  These are two different transactions.

 

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THE 4TH YEAR NON-RENEWAL

After we have provided 4 years coverage - about 70 days before the end of the 4th policy period - we issue a Notice of Non-renewal for the policy.  This is required by the Wisconsin Administrative Code.  Don't panic!  You may reapply.  Read the notice for instructions.

The producer and the customer are required to shop for insurance coverage from a regular insurance company.  If coverage cannot be secured, the customer may apply to us for a new policy.  A completely new submission must be made.  The documentation of rejection sent with the new submission must be from another insurer - NOT THE PLAN.

 

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CLAIM REPORTING.

Report claims promptly.  Producers may call in claims or fax, mail, or e-mail claim reports.  We accept ACORD or any other insurer's claim report forms.

We encourage producers to ask the customer to call either 414.291.5353 or 877.240.0533 during business hours to report a claim.

The Plan has contracted with the Illinois FAIR Plan to supervise claim handling.  All claims are adjusted by independent adjusters or staff of the Illinois FAIR Plan.

 

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