Section Ins 6.54 - Prohibited classification of risks for rating purposes(1) PURPOSE. This rule interprets and implements ss. 601.01(2), 625.02, 625.11, 625.12(2), 625.13, and 625.21(2), Stats., and ch. 628, Stats., for the purpose of prohibiting certain practices.(2) SCOPE. This rule applies to all contracts issued, renewed or amended in Wisconsin affording automobile insurance coverage and all contracts issued, renewed or amended in Wisconsin affording coverage for loss or damage to real property used for residential purposes for not more than 4 living units or affording coverage for loss or damage to personal property used for residential purposes.(3) PROHIBITED PRACTICES. (a) No insurance company shall refuse, cancel or deny insurance coverage to a class of risks solely on the basis of any of the following factors (taken individually or in combination), nor shall it place a risk in a rating classification on the basis of any of the following factors without credible information supporting such a classification and demonstrating that it equitably reflects differences in past or expected losses and expenses and unless such information is filed in accordance with ss. 625.12, 625.13 and 625.21(2), Stats.:1. The applicant's or insured's past criminal record;2. The applicant's or insured's physical condition or developmental disability as defined in s. 51.01(5) (a), Stats.;3. The applicant's or insured's past mental disability;4. The applicant's or insured's age;5. The applicant's or insured's marital status;6. The applicant's or insured's sexual preference;7. The applicant's or insured's "moral" character.(b) Nothing in par. (a) shall be construed as including within the definition of prohibited practices any of the following: 1. Denying, cancelling or non-renewing the automobile or property insurance of a person convicted of an offense if the offense which resulted in the conviction is directly related to the risk to be insured;2. Establishing a classification system merely for the purpose of developing statistical data;3. Underwriting only the class of risks which are specified in the insurer's articles of incorporation;4. Establishing a rate based on the record of all drivers of an insured automobile;5. Establishing a rate based on the number of people residing in a household.(c) Nothing in par. (a) or (b) shall be interpreted in any way as limiting the prohibitions contained in ss. 106.52(3) (a) 4 and 632.35, Stats.(d) No insurer shall require an applicant or insured to undergo a physical examination to obtain or continue coverage unless the cost of such physical examination is borne by the insurer.(4) PENALTY. Violation of this rule may subject the insurer to the penalties set forth in s. 601.64, Stats.Wis. Admin. Code Office of the Commissioner of Insurance Ins 6.54
Cr. Register, March, 1976, No. 243, eff. 4-1-76; emerg. am. (1) and (3) (c), eff. 6-22-76; am. (1) and (3) (c), Register, September, 1976, No. 249, eff. 10-1-76; am. (3) (a) 2., Register, April, 1977, No. 256, eff. 5-1-77; am. (3) (a) 2., and cr. (3) (d), Register, March, 1979, No. 279, eff. 4-1-79; corrections in (1) and (3) (c) made under s. 13.93(2m) (b) 7, Stats., Register, February, 2000, No. 530; correction in (3) (c) made under s. 13.93(2m) (b) 7, Stats., Register January 2002 No. 553.