Unlawful Insurance Policy Cancellation

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WI Court of Appeals – District I

Case Name: LIR Investments LLC, v. Steven Stokelbusch Insurance Agency, Inc., et al.

Case No.: 2016AP1386

Officials: Kessler, Brash and Dugan, JJ.

Focus: Unlawful Insurance Policy Cancellation

Wisconsin Mutual Insurance Company appeals an order granting declaratory judgment to Steven Stokelbusch, Stokelbusch Insurance Agency, Inc., and Westport Insurance Corporation (collectively, “Stokelbusch”). We affirm

The issue on appeal is whether Wisconsin Mutual’s cancellation of the October 23, 2013 policy in December 2013 was prohibited by WIS. STAT. § 631.36 as an unlawful midterm cancellation. Specifically, whether the October 23, 2013 policy was a new policy that had not been previously renewed pursuant to § 631.36(2)(c). The circuit court found that the policy was renewed and thus rendered Wisconsin Mutual’s cancellation of the policy an unlawful midterm cancellation under the statute. Wisconsin Mutual contends that this finding was erroneous because: (1) the circuit court equated the term “reissue”— the term used on the October 23, 2013 policy—with the term “renew”; (2) the effect of this equation will have devastating effects on the insurance industry; and (3) the court’s finding is contrary to the legislative intent behind § 631.36. We disagree.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.