NU Online News Service, June 23, 3:02 p.m.EDT

An insurance trade group official said he is urging a Wisconsinlawmaker to revise a pending budget bill that would raise autoinsurance coverage requirements.

Andy Franken, president of the Wisconsin Insurance Alliance,said provisions in the bill proposed by Wisconsin Gov. Jim Doylewill increase costs for low- and middle-income drivers.

Despite these predictions by WIA and the Property CasualtyInsurers Association of America (PCI), the budget bill was passedby both the Wisconsin Senate and Assembly with the auto insurancecoverage increase mandates in place.

The bill is now at the conference committee level, where the twosides must come to an agreement on a unified bill to send toGovernor Doyle.

With a June 30 deadline approaching, Mr. Franken takes arealistic attitude about the chances of seeing the budget billmodified.

"There's a good chance that it'll stay intact," he conceded.

However, he's still attempting to secure some changes to thebill.

"We're working with members of both the Senate and the Assemblyto lessen the effects of the auto insurance provisions," herelated.

Mr. Franken has the support of other industry organizationrepresentatives, including Mark Johnston, Midwest state affairsmanager for the National Association of Mutual InsuranceCompanies.

"We're hoping they would change the bill. As more people seeit–especially moderate income motorists–I think it will causepeople to think. It's similar to what happened with gas prices.

"We certainly would like to see the auto insurance drivers takenout of the bill," Mr. Johnston concluded

According to PCI, 20-to-25 percent of all insured drivers inWisconsin would be negatively affected by Gov. Doyle's proposedbudget bill.

PCI said that low- and middle-income drivers from northern,western, southwestern and east central Wisconsin counties wouldreceive the highest percentage increases in liability premiums,with those in Milwaukee receiving the highest dollar increases.

NAMIC and PCI said the bill would increase the per person injurylevel coverage requirement from $50,000 for all persons injured to$300,000. A $25,000 limit for one person would increase to$100,000, and the $10,000 property damage requirement wouldincrease to $25,000.

The groups also announced that the bill would increase theminimum limit on medical payments to $100,000 and make uninsuredmotorist and underinsured motorist coverage mandatory at $100,000and $300,000 limits, respectively.

Kimberley Shaul, Wisconsin Deputy Commissioner of Insurance,said at this point the final numbers are uncertain.

Regarding the potential affect of the measure on the cost ofpremiums, Ms. Shaul said, "In Wisconsin, unlike other states, wedon't approve auto rates. We have a very robust market with over200 carriers." She added, "It all depends on the market."

However, she did admit to the possibility of the mandatesincreasing insurance rates.

"Yes, that could happen. Market participants set the rates, andwe can't verify anything until the bill is passed," she said.

Ms. Shaul also shared the reasoning for the proposed higher autoinsurance minimums: "Injury limits haven't been updated in over adecade. The new minimums are designed at consumer protections."

The insurance provisions would have no actual impact on statespending and revenues.

The conference committee is expected to meet tomorrow.