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Insurance — Financial Responsibility Law — reimbursement

By: WISCONSIN LAW JOURNAL STAFF//June 20, 2012//

Insurance — Financial Responsibility Law — reimbursement

By: WISCONSIN LAW JOURNAL STAFF//June 20, 2012//

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Wisconsin Court of Appeals

Civil

Insurance — Financial Responsibility Law — reimbursement

An insurer can get reimbursement from an insured subject to the Financial Responsibility Law, even though it did not inform the state that coverage had lapsed prior to the occurrence giving rise to the claim.

“The Acuity policy contains a reimbursement clause, allowing Acuity to recoup from Albert any payments that Acuity makes to third parties that would not have been made but for the Financial Responsibility law. There is no debate that Albert’s coverage lapsed on August 10—three days before the accident—for failure to pay his premium. Acuity, though, did not send a notice of cancellation to the state until August 16, and per WIS. STAT. § 344.34’s ten-day notice requirement, coverage did not end until August 27. Thus, when the accident occurred on August 13, Albert was uninsured pursuant to the terms of the policy but Acuity still had a responsibility to cover third-party losses. Acuity complied with the Financial Responsibility law by paying the injured parties and is now entitled to seek reimbursement from Albert.”

Reversed.

Recommended for publication in the official reports.

2012AP382-FT Acuity v. Albert

Dist. II, Sheboygan County, Stengel, J., Reilly, J.

Attorneys: For Appellant: Donnelly, Thomas, Milwaukee; For Respondent: Knurr, Timothy S., Racine

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