An insurance contract entered into in violation of this chapter is unenforceable by, but enforceable against, the insurer. The terms of the contract are governed by chs. 600 to 646 and 655 and rules promulgated thereunder. If the insurer does not pay a claim or loss payable under the contract, any person who assisted in the procurement of the contract is liable to the insured for the full amount of the claim or loss, if the person knew or should have known the contract was illegal.
Wis. Stat. § 618.44
Effect of illegal contracts
Applied in 1 court decision — leading case Midwest Commercial Funding, LLC v. Cincinnati Specialty Underwriters Insurance Co. (2017)
Most recently applied in Midwest Commercial Funding, LLC v. Cincinnati Specialty Underwriters Insurance Co. (September 2017)
1971 c. 260; 1979 c. 89; 1979 c. 102 s. 236 (8); 1979 c. 177; 1989 a. 187 s. 29
Official source: Wisconsin State Legislature. Reproduced from public-domain Wisconsin statutes; confirm against the official source for the current text. Not legal advice.