(1) FIRE AND EXTENDED COVERAGE INSURANCE. A milk contractor licensed under s. 126.41 (1) shall maintain fire and extended coverage insurance that covers, at their full value, all milk and milk products in the possession, custody, or control of the milk contractor. If the milk contractor is required to be licensed under s. 126.41 (1) (a), the milk contractor shall maintain insurance issued by an insurance company authorized to do business in this state.
(2) INSURANCE CANCELLATION; REPLACEMENT. Whenever an insurance policy under sub.
(1) is canceled, the milk contractor shall replace the policy so that there is no lapse in coverage.
(3) INSURANCE COVERAGE; MISREPRESENTATION. No milk contractor may misrepresent any of the following to the department or to any milk producer or producer agent:
(a) That the milk contractor is insured.
(b) The nature, coverage, or material terms of the milk contractor’s insurance policy.