The national guides cover the specialty coverages in this area: inland marine, crime, surety, professional liability, umbrellas, flood and legal expense. This guide covers the Wisconsin markets for risks the regular market won't take:

• the risk-sharing plans authorized by chapter 619
• surplus lines
• Wisconsin's definition of legal expense insurance

Risk-sharing plans (Wis. Stat. 619.01)

Chapter 619 authorizes mandatory risk-sharing plans for automobile, workers compensation and property insurance. Wisconsin also runs a plan for health care providers' liability.

Wisconsin Insurance Plan (WIP) (Ins 4.10)

• WIP provides basic property insurance to qualified owners who can't get enough coverage in the voluntary market.
• Every property insurer in Wisconsin participates, under OCI supervision.
• Coverage:
  • fire and extended coverage
  • vandalism and malicious mischief
  • burglary and crime
  • an actual cash value homeowners form
• Not eligible: manufacturers, farm property and automobiles.
• Limits:
  • $350,000 on a dwelling, and $175,000 on personal property for habitational risks
  • $500,000 for other eligible property at one location
  • Modified homeowners: $100,000 personal liability and $1,000 medical payments
• A free inspection checks that the property is physically sound. If insurable, a one-year policy is issued once the premium is paid.
• Agents help applicants but are not the plan's agent. They can't bind coverage, change policies, settle claims or commit the plan.

Wisconsin Health Care Liability Insurance Plan (WHCLIP)

WHCLIP provides liability coverage to eligible health care providers, such as physicians and nurse anesthetists. Its members are the authorized liability insurers other than town mutuals (Ins 17.25).

The auto plan (WAIP) is covered in the Wisconsin Personal Auto Policy guide. The workers compensation Pool is covered in the Wisconsin Workers Compensation guide.

Surplus lines (Wis. Stat. 618.41 to 618.43)

• Placing coverage with an unauthorized insurer requires a separate surplus lines intermediary license on top of the P&C license.
• An unauthorized insurer may not solicit in Wisconsin. Intermediaries may advertise their services without naming particular unauthorized insurers.
• The policy states that the insurer has no certificate of authority and isn't regulated in Wisconsin. The insured is told about any deficiencies, the lack of state regulation, and that the Insurance Security Fund doesn't protect the risk (618.41(4), 618.415).
• Tax: the policyholder pays a 3% premium tax. The intermediary keeps the collected taxes in a separate account, and no one may absorb the tax for the policyholder (618.43).
• A policyholder who buys directly from an unauthorized insurer reports within 60 days on the Ins 6.19 form and pays the tax (618.42).
• A person who violates these rules is personally liable for resulting damages, including the cost of replacing coverage (618.39).

Legal expense insurance (Ins 22.01)

Legal expense insurance pays for legal services. It doesn't include legal services that are only incidental to another coverage, such as defense under a liability policy.

Common exam traps

• WIP excludes manufacturing, farm and auto risks.
• WIP's dwelling limit is $350,000.
• Agents can't bind WIP coverage. They act for the applicant.
• Surplus lines needs a separate license. The tax is 3% and can't be absorbed by the agent.
• Surplus lines risks aren't protected by the Insurance Security Fund.
• Direct procurement from an unauthorized insurer is reported within 60 days.