Part 1 of 2

There will be some changes made to your Glossary Link policy when it renews due to recently enacted 2011 Wisconsin Act 14. These changes will reduce the Glossary Link coverage you will have under your Uninsured Motorist (UM), Underinsured Motorist (UIM), and Medical Payments (Med Pay) coverages. However, you'll also have an opportunity to choose a wide range of coverage limit options with respect to these coverages and your Bodily Injury and Property Damage Glossary Link Liability (BI/PD) coverage.

Here are the details:

1. UM and UIM Coverages

UM coverage pays for your damages, or damages of others covered by your policy, if an injury is caused by an uninsured driver. UIM coverage pays for these damages if an injury is caused by an underinsured driver.

Coverage Reductions - If you purchase UM or UIM coverage, these coverages will be reduced by the new terms of your policy when it renews, as follows:

  1. Stacking - Currently, the limits of these coverages may be stacked for up to three vehicles listed on your policy, for higher total limits. This means, for example, that if your UM or UIM limits are $300,000 combined single limit (CSL), and you have three vehicles listed on your policy, you would effectively have limits of $900,000 CSL. When your policy renews, you may no longer stack UM or UIM limits. The limit shown on your Decalrations Page for UM or UIM is the most we will pay no matter how many vehicles or premiums are listed on your policy.
  2. Reducing Provisions - The limits of liability under both UM and UIM coverages will be reduced by any amount:
    • paid because of bodily injury by or on behalf of anyone that may be legally responsible;
    • paid under BI/PD coverage of this policy; or
    • paid or payable because of bodily injury under workers' compensation, disability benefits law, or other similar laws.
  3. UIM Definitions - The definition of an underinsured motor vehicle in the current law allows you to recover under your UIM coverage if the amount of your damages exceeds the amount of liability coverage available to the vehicle responsible for the accident (limits to damages comparison).
    For example, if your damages are $150,000, your UIM limit is $100,000, and the limit of liability available to the vehicle responsible for the accident is $50,000, you will be able to recover the full $100,000 limit under your UIM coverage ($150,000 - $50,000 = $100,000). When your policy renews, you may recover under your UIM coverage only if your UIM coverage limit exceeds the amount of liability coverage available to the vehicle responsible for the accident (limits to limits comparison). In the above example, you will only be able to recover an additional $50,000 under your UIM coverage ($100,000 - $50,000 = $50,000).
  4. Phantom Vehicles - If a vehicle does not make contact with your vehicle, but causes an accident, you may now only recover under your UM coverage if the following occurs:
    • the facts of the accident are corroborated by competent evidence that is provided by someone other than you or any other person making a Glossary Link claim under your policy;
    • you report the accident to the police within 72 hours after the accident; and
    • you file with us a statement under oath within 30 days after the accident.
  5. New Glossary Link Exclusions and Definitions:
    • An underinsured motor vehicle does not include any vehicle or equipment that is owned by, furnished to, or available for the regular use of you or a relative.
    • We will not pay for bodily injury sustained by any person resulting from the use of a motor vehicle or device of any type that is owned by, furnished to, or available for the regular use of you or a relative.

New UM and UIM Limit Options - Under the current law, you must have both UM and UIM bodily injury coverage limits of at least $100,000 per person/$300,000 per accident (100/300), which may not be rejected. The new law reduces the amount of UM coverage you must have to $25,000 per person/$50,000 per accident, which still may not be rejected. However, the new law allows you to reject UIM coverage. If you elect to purchase UIM coverage, the limits must be at least $50,000 per person/$100,000 per accident.

If you currently have UM or UIM limits of 100/300 or higher, and want the same limits at Glossary Link renewal, you don't have to do anything as your limits will remain the same. However, if you wish to change your UM or UIM limits or reject UIM coverage at renewal, please contact us.

Part 2 of 2

2. Med Pay Coverage

Med Pay coverage pays for reasonable and necessary accident-related care regardless of fault.

Coverage Reduction - Under the current law, the limit of this coverage may be stacked for up to three vehicles listed on your policy for a higher total limit if an insured person is injured in an accident while he or she is a pedestrian. For example, if you currently have a $10,000 Med Pay limit, and have three vehicles listed on your policy, you would effectively have a Med Pay limit of $30,000. When your policy renews, you may no longer stack Med Pay limits. The Med Pay limit shown on your Declarations Page is the most we will pay no matter how many vehicles or premiums are listed on your policy.

Offer of Med Pay Coverage and New Limit Options - Under the current law, if you elect to purchase Med Pay coverage, the limit cannot be less than $10,000. When your policy renews, you will have the option to purchase Med Pay coverage at a limit of $1,000, $2,000, $5,000, in addition to the $10,000 limit. Like the current law, you may also choose to reject Med Pay.

If you currently have a Med Pay limit of $10,000, and want the same limit at renewal, you don't have to do anything as your limit will remain the same. Similarly, if you currently rejected Med Pay and want to reject it at renewal, you don't have to do anything as no Med Pay coverage will be added to your policy. However, if you would like to purchase Med Pay or change your Med Pay limits, please contact us.

3. BI/PD coverage

BI/PD coverage pays other people's damages for accidents caused by you or other drivers covered under your policy.

New Limit Option - Under the current law, you must have BI/PD limits of at least $50,000 bodily injury per person/$100,000 bodily injury per accident/$15,000 property damage per accident (50/100/15). The new law reduces the amount of BI/PD limits you must have to $25,000 bodily injury per person/$50,000 bodily injury per accident/$10,000 property damage per accident (25/50/10). If you currently have BI/PD limits of 50/100/15 or higher, and want to have the same limits at renewal, you don't need to do anything as your limits will remain the same. However, if you wish to change your BI/PD limits, please contact us.

This summary provides a basic description of the changes to your renewal policy for informational purposes only. Please refer to your policy contract for the actual terms, conditions, limitations and exclusions that apply. If there are differences between this summary and the policy, the policy language shall govern.

A040 WI (06/11)

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Van Dyn Hoven Insurance Agency    |    534 Pine Street    |    Little Chute, WI  54140
Phone: 920.788.3530    |    Fax: 920.788.5946    |    800.525.0769    |    Email: info@vdhinsurance.com
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