Wis. Admin. Code Office of the Commissioner of Insurance § Ins 13.04 - Undertaking to pay premiums and assessments and contract forms

Current through March 28, 2022

(1) PURPOSES. This rule is promulgated to implement, and set forth procedural requirements necessary to carry out the purpose and provisions of ss. 612.51, 612.52 and 612.54, Stats.
(2) SCOPE. This rule shall apply to all corporations organized or operating under ch. 612, Stats.
(3) UNDERTAKING TO PAY PREMIUMS AND ASSESSMENTS. The undertaking to pay premiums and assessments to be signed by all prospective members shall be in form and substance substantially as follows, and may be a part of the application:

UNDERTAKING TO PAY PREMIUMS AND ASSESSMENTS

I, of , in consideration of insurance on my buildings and personal property, insured to myself, my heirs and assigns by the Insurance Company, bind myself, and to the extent of their interest in the property my heirs and assigns, to pay to the company the premiums for such insurance and, within the period of time stated in the notice of assessment, my share of all legal assessments, if any, levied by the company, together with all legal costs and charges incurred in legal proceedings to collect any assessment levied upon me and statutory penalties for nonpayment, according to the statutes and the terms and conditions in the policy and any renewals thereof or of the insurance thereunder. My property covered by the insurance, both personal and real, shall be liable for that share, waiving all exemptions.

Dated this day of , 20

Witness

Agent

Applicants

(4) TOWN MUTUAL POLICY FORMS. Town mutual policy forms shall conform to ss. Ins 6.07 and 6.76, and shall include provisions substantially as follows relating to articles of incorporation and bylaws and notice of annual meeting:
(a)

ARTICLES OF INCORPORATION AND BYLAWS

It is hereby mutually understood and agreed by and between this company and the insured, that this policy is made and accepted with reference to the Articles of Incorporation and Bylaws, which are hereby declared to be part of this contract. This provision applies whether or not the Articles of Incorporation and Bylaws are included in this policy.

(b)

NOTICE

The insured is notified that by virtue of this Policy he or she is a member of the Insurance Company, of _________________, County, Wisconsin, and that the annual meetings of said company are held in_______________, County, Wisconsin, on the (date) in (month) of each year at _____o'clock__M.

(5) PERMISSIBLE VARIATIONS. Provisions of a town mutual policy may be so arranged in the policy as to provide for convenience in its preparation and issuance. Blank spaces may be changed or altered, spaces may be provided for the listing of rates and premiums for coverages insured under the policy or by riders or by endorsements attached to or printed thereon, and spaces may be utilized for reference to forms and for listing the amount of insurance, provisions as to coinsurance, provisions as to mortgage clause, descriptions and locations of the insured property and other matters advisable and necessary to indicate a delineation of the insurance effective under the contract, and other data as may be included for duplication of daily reports for office records.
(6) FORMS AND ENDORSEMENTS. Riders, forms and endorsements may be attached to the town mutual policy to include perils in addition to fire and lightning and for other necessary purposes. Except when in contradiction with ch. 612, Stats., the contracts, endorsements, and other forms of town mutuals should be similar to like forms of insurers subject to chs. 631 and 632, Stats.
(7) MORTGAGEE CLAUSE. If a loss under a policy issued by a town mutual insurer is payable to a mortgagee who is not an insured, the mortgagee clause may provide:
(a) For payment by the insurer despite policy defense; or
(b) That the mortgagee is not liable for any premium or assessment, regardless of whether coverage has been extended after payment of a premium or assessment by the mortgagee.

Notes

Wis. Admin. Code Office of the Commissioner of Insurance § Ins 13.04
Cr. Register, August, 1974, No. 224, eff. 9-1-74; emerg. am. (4) (a) and (c), eff. 6-22-76; am. (4) (a) and (c), Register, September, 1976, No. 249, eff. 10-1-76; am. (3), r. and recr. (4) and (5), cr. (6), Register, April, 1982, No. 316, eff. 5-1-82; cr. (7), Register, May, 1986, No. 365, eff. 6-1-86.

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