Insurance; prohibit cancellation of, nonrenewal of, or increase in rates for nonfault motor vehicle incident of the insured.

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To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Yates

HOUSE BILL NO. 1274

AN ACT TO PROVIDE THAT NO INSURER SHALL INCREASE THE RATE, 1
INCREASE OR ADD A SURCHARGE, CANCEL, OR FAIL TO RENEW ANY POLICY 2
OF MOTOR VEHICLE INSURANCE WHEN SUCH ACTION IS BASED ON 3
CONSIDERATION OF ONE OR MORE NONFAULT INCIDENTS; TO DEFINE A 4
NONFAULT INCIDENT; TO PROVIDE PENALTIES FOR AN INSURER WHO 5
VIOLATES THESE PROVISIONS; TO AMEND SECTION 83-11-3 AND 83-11-7, 6
MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS 7
ACT; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. (1) For purposes of this section, "nonfault 10
incident" means an accident, collision, or other incident 11
involving a vehicle covered by a policy issued by the insurer in 12
which the driver of the insured vehicle was not at fault, 13
regardless of whether the incident was reported to any law 14
enforcement agency. 15
(2) No insurer shall increase the rate, increase or add a 16
surcharge, cancel, or fail to renew any policy of motor vehicle 17
insurance when such action is based on consideration of one or 18
more nonfault incidents. 19
(3) Any insurer who violates this section shall refund to 20
the insured person the amount of premium that was paid which 21
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exceeded the premium that would have been charged if the insurer 22
had complied with this section, together with a penalty payment in 23
amount equal to triple the amount of the refund or One Thousand 24
Dollars ($1,000.00), whichever is greater. The insured shall also 25
be entitled to attorney fees should he or she prevail. 26
(4) Notwithstanding any other provision of law to the 27
contrary, one or more nonfault accidents or collisions shall not 28
be the sole basis for an insurer's denial of an application for a 29
policy of motor vehicle insurance, and such an accident or 30
collision shall not be considered by an insurer in determining the 31
rates for such a policy. In addition, no insurer shall require 32
that such coverage be provided by another insurer based solely 33
upon such an accident or collision. 34
SECTION 2. Section 83-11-3, Mississippi Code of 1972, is 35
amended as follows: 36
83-11-3. (1) A notice of cancellation of a policy shall be 37
effective only if it is based on one or more of the following 38
reasons: 39
(a) Nonpayment of premium; 40
(b) The driver's license or motor vehicle registration 41
of the named insured, or of any other operator who either resides 42
in the same household or customarily operates an automobile 43
insured under the policy, has been under suspension or revocation 44
during the policy period or, if the policy is a renewal, during 45
its policy period or the one hundred eighty (180) days immediately 46
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preceding its effective date, unless within seven (7) days from 47
the date of any such cancellation or suspension, the insured shall 48
give insurer written notice of such revocation or suspension and 49
shall direct the insurer to exclude from coverage under said 50
policy the person whose license was so suspended or revoked; 51
further use of the insured vehicle by an excluded driver shall be 52
grounds for immediate cancellation of a policy; or 53
(c) Failure to make timely payment of dues to, or to 54
maintain membership in good standing with, a designated 55
association, corporation, or other organization where the original 56
issue of such policy or renewal was dependent upon such 57
membership. 58
(2) A notice of cancellation of a policy shall not be 59
effective if it is based on one or more nonfault incidents 60
involving the insured. 61
( * * *3) This section shall not apply to any policy or 62
coverage which has been in effect less than sixty (60) days at the 63
time notice of cancellation is mailed or delivered by the insurer, 64
unless it is a renewal policy. 65
( * * *4) Modification of automobile physical damage 66
coverage by the inclusion of a deductible not exceeding One 67
Hundred Dollars ($100.00) shall not be deemed a cancellation of 68
the coverage or of the policy. 69
( * * *5) This section shall not apply to nonrenewal. 70
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SECTION 3. Section 83-11-7, Mississippi Code of 1972, is 71
amended as follows: 72
[From July 1, 2025, until July 1, 2026, this section shall 73
read as follows:] 74
83-11-7. No insurer shall fail to renew a policy to any 75
coverage issued or renewed on or before June 30, 2026, unless it 76
shall mail or deliver to the named insured, at the address shown 77
in the policy and to the named creditor loss payee, at least 78
thirty (30) days' advance notice of its intention not to renew. 79
No insurer shall fail to renew a policy to any coverage issued or 80
renewed on or before June 30, 2026, solely based on consideration 81
of one or more nonfault incidents. This section shall not apply 82
if there is no named creditor loss payee and: 83
(a) If the insurer has manifested its willingness to 84
renew, subject to certain specified conditions which are not met 85
by the insured; nor 86
(b) If the insured has manifested its unwillingness to 87
renew; nor 88
(c) In case of nonpayment of premium; nor 89
(d) In case of failure to make timely payment of dues 90
to, or to maintain membership in good standing with, a designated 91
association, corporation or other organization where the original 92
issue of such policy or renewal was dependent upon such 93
membership; provided that, notwithstanding the failure of an 94
insurer to comply with this section, the policy shall terminate on 95
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the effective date of any other insurance policy with respect to 96
any automobile designated in both policies. 97
A notice of nonrenewal is not required when a replacement 98
policy form is issued by the same insurer or when an insured is 99
transferred to a licensed affiliate of the insurer, so long as the 100
transfer or replacement results in the same or substantially 101
similar coverage. Whenever a replacement policy form is issued by 102
the same insurer, or when transfer of an insured to a licensed 103
affiliate occurs documents signed by the insured are applicable to 104
the replacement policy form, the coverage transferred to a 105
licensed affiliate insurer, or both, and remain valid and 106
enforceable. An insured shall not be transferred to a licensed 107
affiliation only on the basis of one or more nonfault incidents. 108
Whenever a replacement policy form providing the same or 109
substantially similar coverage is issued by the same insurer, or 110
by a licensed affiliate insurer, such insurer shall mail or 111
deliver to the policyholder, at least thirty (30) days in advance 112
of the effective date of renewal, written notice of any terms or 113
conditions that are less favorable to the policyholder. 114
A transferring insurer shall notify the Mississippi Insurance 115
Department at least forty-five (45) days in advance of notifying a 116
policyholder that its personal or commercial lines insurance 117
policies will be transferred to another licensed insurer within 118
the same insurance group or same holding company. The notice 119
shall include the name of insurer transferring the personal or 120
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commercial lines policies and the name and financial rating of the 121
insurer receiving the transferred personal or commercial lines 122
policies. 123
A transferring insurer shall provide the policyholder written 124
notice of the policy transfer at least thirty (30) days prior to 125
expiration of the policy term and shall include the financial 126
rating of the insurer receiving the transferred policy. Such 127
notice must be provided to the policyholder with the notice of 128
renewal premium at least thirty (30) days before the effective 129
date of the transfer. 130
Renewal of a policy shall not constitute a waiver or estoppel 131
with respect to grounds for cancellation which existed before the 132
effective date of such renewal, and if a policy shall be cancelled 133
as authorized by this article prior to such policy's renewal, such 134
cancellation shall terminate any right of renewal conferred by 135
this article. 136
[From and after July 1, 2026, this section shall read as 137
follows:] 138
83-11-7. No insurer shall fail to renew a policy or issue a 139
reduction in coverage to any coverage issued or renewed on or 140
after July 1, 2026, unless it shall mail or deliver to the named 141
insured, at the address shown in the policy and to the named 142
creditor loss payee, at least forty-five (45) days advance notice 143
of its intention not to renew. No insurer shall fail to renew a 144
policy or issue a reduction in coverage to any coverage issued or 145
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renewed on or after July 1, 2026, solely based on consideration of 146
one or more nonfault incidents. This section shall not apply if 147
there is no named creditor loss payee and: 148
(a) If the insurer has manifested its willingness to 149
renew, subject to certain specified conditions which are not met 150
by the insured; nor 151
(b) If the insured has manifested its unwillingness to 152
renew; nor 153
(c) In case of nonpayment of premium; nor 154
(d) In case of failure to make timely payment of dues 155
to, or to maintain membership in good standing with, a designated 156
association, corporation or other organization where the original 157
issue of such policy or renewal was dependent upon such 158
membership; provided that, notwithstanding the failure of an 159
insurer to comply with this section, the policy shall terminate on 160
the effective date of any other insurance policy with respect to 161
any automobile designated in both policies. 162
A notice of nonrenewal is not required when a replacement 163
policy form is issued by the same insurer or when an insured is 164
transferred to a licensed affiliate of the insurer, so long as the 165
transfer or replacement results in the same or substantially 166
similar coverage. Whenever a replacement policy form is issued by 167
the same insurer, or when transfer of an insured to a licensed 168
affiliate occurs, documents signed by the insured are applicable 169
to the replacement policy form, the coverage transferred to a 170
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licensed affiliate insurer, or both, and remain valid and 171
enforceable. An insured shall not be transferred to a licensed 172
affiliation only on the basis of one or more nonfault incidents. 173
Whenever a replacement policy form providing the same or 174
substantially similar coverage is issued by the same insurer, or 175
by a licensed affiliate insurer, such insurer shall mail or 176
deliver to the policyholder, at least forty-five (45) days in 177
advance of the effective date of renewal, written notice of any 178
terms or conditions that are less favorable to the policyholder. 179
A transferring insurer shall notify the Mississippi Insurance 180
Department at least forty-five (45) days in advance of notifying a 181
policyholder that its personal or commercial lines insurance 182
policies will be transferred to another licensed insurer within 183
the same insurance group or same holding company. The notice 184
shall include the name of the insurer transferring the personal or 185
commercial lines policies and the name and financial rating of the 186
insurer receiving the transferred personal or commercial lines 187
policies. 188
A transferring insurer shall provide the policyholder written 189
notice of the policy transfer at least forty-five (45) days prior 190
to expiration of the policy term and shall include the financial 191
rating of the insurer receiving the transferred policy. Such 192
notice must be provided to the policyholder with the notice of 193
renewal premium at least forty-five (45) days before the effective 194
date of the transfer. 195
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ST: Insurance; prohibit cancellation of,
nonrenewal of, or increase in rates for nonfault
motor vehicle incident of the insured.
Renewal of a policy shall not constitute a waiver or estoppel 196
with respect to grounds for cancellation which existed before the 197
effective date of such renewal, and if a policy shall be cancelled 198
as authorized by this article prior to such policy's renewal, such 199
cancellation shall terminate any right of renewal conferred by 200
this article. 201
If the insurer fails to meet the notice requirement of this 202
section, the named insured has the option of continuing the policy 203
or contract for the remainder of the notice period plus an 204
additional forty-five (45) days at the premium rate of the 205
existing policy or contract. Such option shall continue in 206
forty-five-day increments until the insurer provides the notice 207
required in this section. 208
SECTION 4. This act shall take effect and be in force from 209
and after July 1, 2026. 210