What can occur in case your proof of loss is late or delayed? Can your declare be denied due to a technicality resembling this? Totally different states have totally different stances on this and in Wisconsin two statues govern this. Wisconsin Statute §§ 631.81 and 632.26 govern discover provisions in Wisconsin insurance coverage insurance policies and set out the rights and duties of the insured and the insurer.

Wisconsin Statute § 631.81 is entitled “Discover and proof of loss.” Subsection (1) reads:

TIMELINESS OF NOTICE. Supplied discover or proof of loss is furnished as quickly as fairly doable and inside one yr after the time it was required by the coverage, failure to furnish such discover or proof throughout the time required by the coverage doesn’t invalidate or cut back a declare except the insurer is prejudiced thereby and it was fairly doable to satisfy the time restrict.

If the discover comes as quickly as fairly doable and inside a yr of the coverage deadline, the declare shouldn’t be invalidated except the insurer was prejudiced by the delay and it was fairly doable to satisfy the time restrict.¹ Wisconsin Statute 632.26 locations the burden on the insured to indicate it was not fairly doable to offer discover throughout the prescribed time, and locations “the danger of nonpersuasion . . . upon the individual claiming there was no prejudice.”² This statute applies to all insurance coverage insurance policies, together with claims-made insurance policies {and professional} legal responsibility insurance policies.³

In Ehlers v. Colonial Penn Insurance coverage Firm, there was a query whether or not the delay was fairly needed.⁴ The court docket held that the insurer had waived their prejudice protection. The court docket based mostly its holding on waiver, partially:

[T]hat below the info and circumstances of this case, significantly the truth that the discover of accident despatched by the plaintiff to the insured on March 7 was returned by the insurer on March 12 with a request for added info and the truth that the defendant denied legal responsibility not more than seven days after receiving the extra info, the defendant denied protection as a matter of regulation inside that point the plaintiff may have submitted her proofs.⁵

Whereas it’s good to know bear in mind concerning the impact of delays on offering proofs of loss concerning an insurance coverage declare, the most secure plan of action for Wisconsin policyholders is to be well timed and never present a late proof of loss.⁶

¹ Larson v. Heritage Mut., 132 Wis. second 479, 392 N.W.second 848 (Wis. Ct. App. 1986).

² Id.

³ Id.

⁴ Ehlers v. Colonial Penn Ins. Co., 81 Wis. second 64, 75, 259 N.W.second 718, 724 (Wis. 1977).

⁵ Ehlers, at 81 Wis. second 64, 75, 259 N.W.second 718, 724.

⁶ Id.