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Bill > HB444
MS HB444
MS HB444Windstorm Underwriting Association; authorize to levy recoupable and nonrecoupable assessments.
summary
Introduced
01/14/2019
01/14/2019
In Committee
02/26/2019
02/26/2019
Crossed Over
02/12/2019
02/12/2019
Passed
03/27/2019
03/27/2019
Dead
Signed/Enacted/Adopted
04/03/2019
04/03/2019
Introduced Session
2019 Regular Session
Bill Summary
An Act To Amend Section 83-34-1, Mississippi Code Of 1972, To Define Certain Terms As Used In The Mississippi Windstorm Underwriting Association Law; To Amend Section 83-34-3, Mississippi Code Of 1972, In Conformity; To Amend Reenacted Section 83-34-4, Mississippi Code Of 1972, To Divert A Certain Amount Of Funds Derived From The Nonadmitted Policy Fee Into The Rural Fire Truck Fund Or Supplementary Rural Fire Truck Fund, And To Extend The Repealer On The Section; To Amend Section 83-34-5, Mississippi Code Of 1972, In Conformity; To Amend Section 83-34-9, Mississippi Code Of 1972, In Conformity; To Amend Section 83-34-10, Mississippi Code Of 1972, To Authorize The Association To Levy Recoupable And Nonrecoupable Assessments Upon The Occurrence Of Certain Events, To Provide That The Minimum Reserve Shall Not Be Considered As Funds Available To The Association In Determining Whether To Levy A Recoupable Or Nonrecoupable Assessment, And To Set The Maximum Total Of Nonrecoupable Assessments; To Amend Section 83-34-12, Mississippi Code Of 1972, In Conformity; To Amend Section 83-34-13, Mississippi Code Of 1972, To Provide That The Association's Plan Of Operation May Include The Establishment Of A Minimum Reserve; To Amend Sections 83-34-23 And 83-34-31, Mississippi Code Of 1972, In Conformity; To Amend Section 83-34-33, Mississippi Code Of 1972, To Authorize The Commissioner Of Insurance To Implement An Excess Deficit Surcharge For Covered Event Losses On All Property And Casualty Premiums; To Amend Section 83-34-35, Mississippi Code Of 1972, In Conformity; To Repeal Section 83-34-11, Mississippi Code Of 1972, Which Implements A Surcharge On All Property And Casualty Premiums For The Purpose Of Reimbursing Assessable Insurers Who Paid A Regular Assessment; To Amend Section 17-23-1, Mississippi Code Of 1972, To Authorize An Additional Round Of Fire Trucks Under The Rural Fire Truck Acquisition Assistance Program; And For Related Purposes.
AI Summary
This bill makes several key changes to the Mississippi Windstorm Underwriting Association:
1. It defines new terms, including "recoupable assessment" (an assessment that can be directly recovered from policyholders) and "nonrecoupable assessment" (an assessment that cannot be directly recovered from policyholders).
2. It authorizes the Association to levy both recoupable and nonrecoupable assessments on insurance companies if it experiences losses or a deficit from a covered event like a hurricane.
3. It caps nonrecoupable assessments at 6% of the Association's total policy limits or $250 million, whichever is less, in any given year.
4. It allows the Association to use funds from a 3% "nonadmitted policy fee" on insurance policies placed through non-admitted (unlicensed) insurers for certain purposes, including mitigation programs.
5. It extends the repealer on the nonadmitted policy fee provision from 2019 to 2022.
6. It authorizes the Insurance Commissioner to implement an "excess deficit surcharge" on all property and casualty insurance premiums if the Association experiences a deficit that cannot be resolved through other means.
Overall, the bill is aimed at providing the Windstorm Underwriting Association with more financial tools and flexibility to manage large losses and deficits, while also directing some funds to rural fire departments and mitigation efforts.
Committee Categories
Business and Industry, Government Affairs
Sponsors (6)
Tracy Arnold (R)*,
Gary Chism (R)*,
John Hines (D)*,
Tom Miles (D)*,
Orlando Paden (D)*,
Jerry Turner (R)*,
Last Action
Approved by Governor (on 04/03/2019)
Official Document
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