(1) PROPERTY INSURANCE. (a) General. Subject to other provisions of this section, a town mutual may insure a member against loss or damage from any cause to any property in which the member has an interest. (b) Extensions. 1. Insurance authorized under par. (a) may include insurance against loss of use of or loss of income from property including interruption of business activity caused by loss or damage to the property. 2. Insurance authorized under par. (a) may include replacement cost coverage. (2) LIMITATIONS ON PROPERTY INSURANCE. (a) Windstorm and hail insurance. 1. No town mutual may insure a member against loss to growing crops by windstorm or hail. 2. No town mutual may insure a member against loss to property by windstorm or hail unless approval of the members is obtained under s. 612.12. 3. A town mutual insuring a member against loss to property by windstorm or hail must obtain reinsurance under s. 612.33 (2) (a). (b) Burglary and plate glass. A town mutual may insure a member against loss of property by burglary or theft or against the breakage of glass whether in a specified location or in transit but may do so only as a coverage supplemental to fire and extended coverage insurance on the property. (c) Limitations by rule. The commissioner may by rule exclude any insurance authorized under sub. (1) or (3) if he or she finds that it cannot be successfully transacted by town mutuals without endangering the interests of insureds or the public. (3) NONPROPERTY INSURANCE. Subject to the voting requirement of s. 612.12 (1) (d) and the reinsurance requirement of s. 612.33 (2), a town mutual may include any of the following as supplementary coverage to property insurance written under sub. (1): (a) Liability insurance. Insurance against loss or damage for which the insured is liable caused by the sickness, personal injury or death of any other person or by loss or damage to the property of the other person. (b) Errors and omissions. Insurance against loss, expense and liability resulting from errors, omissions or neglect in the performance of any official, vocational or professional service, except loss or damage covered by par. (a). (c) Medical payments and other supplemental insurance. Insurance against loss, damage and expense, including loss of time, arising out of bodily injury to, or sickness, disease or death of the insured or another person, caused by accident, for which the insurer assumes an obligation to pay irrespective of the member’s legal liability therefor. (4) EXCLUDED BUSINESS. Town mutuals may not transact the following insurance business: (a) Life insurance and annuities; (b) Disability insurance except under sub. (3) (a) and (c); (c) Liability insurance except under sub. (3) (a) and (b); (d) Automobile liability insurance except under sub. (3) (a); (e) Worker’s compensation insurance; (f) Elevator liability or steam boiler liability insurance; (g) Ocean marine insurance; (h) Inland marine insurance except as a supplementary coverage to property in a fixed location insured under sub. (1); (i) Fidelity or surety insurance; (j) Credit insurance; (k) Mortgage guaranty insurance; (L) Title insurance; (m) Assuming reinsurance; or (n) Loss, damage or liability caused by nuclear reaction or nuclear radiation or radioactive contamination, whether directly or indirectly resulting from an insured peril under the policy. (7) SPECIAL REQUIREMENTS. The commissioner may, as a condition for transacting specified types of business, establish by rule special requirements concerning minimum surplus, the minimum number of members or insured risks, the operating territory, required reinsurance, and approval by a specified percentage of the members, so far as such requirements are necessary to protect the interests of insureds and the public.
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