Fire safety; establish Fire Grant Fund to assist counties and municipalities in improving fire safety.

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To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Hawkins, Anthony, Turner

COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1392

AN ACT TO REQUIRE THE STATE FIRE MARSHAL AND THE MISSISSIPPI 1
STATE RATING BUREAU TO ADOPT AND USE INSURANCE SERVICES OFFICE 2
(ISO) STANDARDS FOR FIRE TRUCKS; TO PROHIBIT THE MANDATORY 3
RETIREMENT OF CERTAIN FIRE TRUCKS BASED SOLELY ON THEIR CALENDAR 4
AGE; TO CREATE THE FIRE GRANT FUND AS SPECIAL FUND IN THE STATE 5
TREASURY FOR THE PURPOSE OF ASSISTING COUNTIES AND MUNICIPALITIES 6
WITH MEASURES AIMED AT IMPROVING FIRE SAFETY; TO REQUIRE ALL FUNDS 7
FORMERLY CREDITED TO THE RURAL FIRE TRUCK FUND, THE RURAL FIRE 8
TRUCK MATCHING ASSISTANCE FUND, THE SUPPLEMENTARY RURAL FIRE TRUCK 9
FUND AND THE ANNUAL FIRE FUND TO PAID INTO THE FIRE GRANT FUND, 10
AND TO REQUIRE THE TRANSFER OF BALANCES IN THOSE FUNDS TO THE FIRE 11
GRANT FUND; TO REQUIRE THE DEPARTMENT OF FINANCE AND 12
ADMINISTRATION TO ADMINISTER THE FUND; TO ESTABLISH THE FIRE GRANT 13
ADVISORY COMMITTEE FOR THE PURPOSE OF PROVIDING NONBINDING ADVICE 14
TO THE DEPARTMENT OF FINANCE AND ADMINISTRATION REGARDING THE 15
ADMINISTRATION OF THE FIRE GRANT FUND AND THE AUTHORIZING AND 16
AWARDING GRANTS FROM THE FIRE GRANT FUND; TO AUTHORIZE GRANTS TO 17
BE AWARDED FOR FIRE TRUCKS, EQUIPMENT AND COUNTYWIDE FIRE 18
PROGRAMS; TO REPEAL SECTION 17-23-1, MISSISSIPPI CODE OF 1972, 19
WHICH CREATES THE RURAL FIRE TRUCK ACQUISITION ASSISTANCE PROGRAM; 20
TO REPEAL SECTION 17-23-11, MISSISSIPPI CODE OF 1972, WHICH 21
CREATES A SUPPLEMENTARY RURAL FIRE TRUCK ACQUISITION ASSISTANCE 22
PROGRAM; TO REPEAL SECTION 17-23-21, MISSISSIPPI CODE OF 1972, 23
WHICH CREATES THE ANNUAL FIRE FUND; TO AMEND SECTION 83-34-4, 24
MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING 25
PROVISIONS; TO BRING FORWARD SECTION 83-1-191, MISSISSIPPI CODE OF 26
1972, WHICH CREATES THE COMPREHENSIVE HURRICANE DAMAGE MITIGATION 27
PROGRAM, FOR PURPOSES OF AMENDMENT; TO BRING FORWARD SECTION 28
83-1-201, MISSISSIPPI CODE OF 1972, WHICH CREATES THE MISSISSIPPI 29
WINDSTORM MITIGATION FUND, FOR PURPOSES OF POSSIBLE AMENDMENT; TO 30
BRING FORWARD SECTIONS 83-34-1, 83-34-3 AND 83-34-5 THROUGH 31
83-34-37, MISSISSIPPI CODE OF 1972, WHICH IS THE CHAPTER OF LAW 32
GOVERNING THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION, FOR 33
PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 34
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 35
SECTION 1. The State Fire Marshal and the Mississippi State 36
Rating Bureau shall adopt and use Insurance Services Office (ISO) 37
standards for fire trucks. The standards may not include any age 38
requirement that mandates that a fire truck must be retired solely 39
on the basis of the calendar age of the fire truck if that fire 40
truck has an up-to-date maintenance log and has passed all 41
required safety inspections and performance testing, including 42
pump and ladder testing, if applicable. For purposes of this 43
section, the term "fire truck" means all fire apparatuses, 44
including, but not limited to, pumpers, tankers, ladder, brush and 45
rescue trucks. 46
SECTION 2. (1) There is created in the State Treasury a 47
special fund to be designated as the "FIRE Grant Fund" to be 48
administered by the Department of Finance and Administration. The 49
purposes of the fund shall be to assist municipalities and 50
counties with fire safety, maintaining or lowering community fire 51
ratings, recruiting and retaining firefighters, and defraying 52
initial costs associated with creating a countywide fire program. 53
(2) Beginning on July 1, 2026, all funds that would have 54
been appropriated to or otherwise deposited in, before July 1, 55
2026, the Rural Fire Truck Fund and Rural Fire Truck Matching 56
Assistance Fund created under Section 17-23-1, the Supplementary 57
Rural Fire Truck Fund created under Section 17-23-11, and the 58
Annual Fire Fund created under Section 17-23-21 shall be deposited 59
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into the FIRE Grant Fund. No later than July 10, 2026, the State 60
Fiscal Officer shall transfer all unobligated funds in the Rural 61
Fire Truck Fund, the Rural Fire Truck Matching Assistance Fund, 62
the Supplementary Rural Fire Truck Fund and the Annual Fire Fund 63
to the FIRE Grant Fund. Unexpended amounts remaining in the FIRE 64
Grant Fund at the end of a fiscal year shall not lapse into the 65
State General Fund, and any interest earned on amounts in the fund 66
shall be deposited to the credit of the fund. 67
(3) There is created the FIRE Grant Advisory Committee, 68
which shall provide nonbinding advice to the Department of Finance 69
and Administration regarding the administration of the FIRE Grant 70
Fund and the authorizing and awarding grants from the FIRE Grant 71
Fund. The FIRE Grant Advisory Committee shall be comprised of the 72
following members: 73
(a) The Chair of the Appropriations Committee of the 74
House of Representatives; 75
(b) The Chair of the Appropriations Committee of the 76
Senate; 77
(c) Four (4) individuals appointed by the Lieutenant 78
Governor, with one (1) of such being from each Congressional 79
District; and 80
(d) Four (4) individuals appointed by the Speaker of 81
the House of Representatives, with one (1) of such being from each 82
Congressional District. 83
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(4) The FIRE Grant Fund shall be used to fund grants in the 84
following areas: 85
(a) Fire trucks. A fire truck grant will be awarded on 86
a need, prior points system and the amount of matching funds made 87
available by an applicant. An applicant must be awarded one (1) 88
point for having a current Fire Rating Plan on file. In addition, 89
an applicant shall be awarded one (1) point for every unsuccessful 90
grant application. An applicant that is awarded a grant, but 91
which chooses not to accept it, may not be awarded a point. After 92
an applicant has been awarded a grant and accepted it, the 93
applicant's points start to accumulate again. A grant awarded 94
under this paragraph shall pay an amount up to seventy percent 95
(70%) of the total purchase price of a fire truck; however, if an 96
applicant never received a grant under the Rural Fire Truck 97
Acquisition Assistance Program, the applicant's first match under 98
this paragraph may be an amount up to ninety percent (90%). 99
(b) Equipment. An equipment grant will be awarded on a 100
need, prior points system and the amount of matching funds made 101
available by an applicant. An applicant must be awarded one (1) 102
point for having a current Fire Rating Plan on file. In addition, 103
an applicant shall be awarded one (1) point for every unsuccessful 104
grant application. An applicant that is awarded a grant, but 105
which chooses not to accept it, may not be awarded a point. After 106
an applicant has been awarded a grant and accepted it, the 107
applicant's points start to accumulate again. A grant awarded 108
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under this paragraph shall pay an amount up to seventy percent 109
(70%) of the total purchase price of equipment. 110
(c) Countywide Fire Programs. The countywide fire 111
grant will reimburse a county an amount up to One Hundred Thousand 112
Dollars ($100,000.00) to help cover the first or second year 113
expenses following the formation and implementation of a 114
countywide fire program. The grant may cover expenses incurred 115
from the construction of a building, the purchase of software, 116
computers, radios and other equipment, and staffing. In order to 117
be eligible for a grant under this paragraph, a program must be 118
approved by the local governing board and must consolidate no less 119
than three (3) local volunteer fire departments or alternatively, 120
must cover no less than forty percent (40%) of the county. No 121
more than five (5) grants may be awarded across the state under 122
this paragraph during a one-year period. 123
(5) In addition to the requirements specified in subsection 124
(4) of this section, in order to be eligible for a grant under 125
this section, an applicant must have a Fire Rating Plan on file 126
which includes a one-year and three-year plan to maintain and 127
reduce the area fire rating. 128
SECTION 3. Section 17-23-1, Mississippi Code of 1972, which 129
creates the Rural Fire Truck Acquisition Assistance Program, is 130
repealed. 131
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SECTION 4. Section 17-23-11, Mississippi Code of 1972, which 132
creates a Supplementary Rural Fire Truck Acquisition Assistance 133
Program, is repealed. 134
SECTION 5. Section 17-23-21, Mississippi Code of 1972, which 135
creates the Annual Fire Fund, is repealed. 136
SECTION 6. Section 83-34-4, Mississippi Code of 1972, is 137
amended as follows: 138
83-34-4. (1) Nonadmitted insurers shall not be assessable 139
insurers of the association. All surplus lines insurance 140
producers placing insurance through nonadmitted insurers shall 141
collect from the insured and remit to the association a 142
nonadmitted policy fee on all premiums for all insurance written 143
by such surplus lines insurance producer for a policy from a 144
nonadmitted insurer for any and all risks in this state, except 145
that policies or portions thereof that cover residential 146
earthquake risks or residential flood risks that are not written 147
through the National Flood Insurance Program shall be exempt from 148
the nonadmitted policy fee. By procuring or selling insurance on 149
property in this state from a nonadmitted insurer, each surplus 150
lines insurance producer placing insurance through a nonadmitted 151
insurer agrees to be bound by the provisions of this chapter and 152
to collect and remit the nonadmitted policy fee provided for 153
herein. 154
(2) The nonadmitted policy fee shall be a percentage of the 155
total policy premium but the nonadmitted policy fee shall not be 156
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considered premium and is not subject to premium taxes or 157
commissions. However, failure to pay the nonadmitted policy fee 158
shall be treated the same as failure to pay premium. "Total 159
policy premium" includes taxes and commissions. 160
(3) The nonadmitted policy fee percentage shall be three 161
percent (3%). 162
(4) Within twenty (20) days of the end of the quarter, 163
surplus lines insurance producers placing insurance through 164
nonadmitted insurers shall remit directly to the association all 165
nonadmitted policy fees collected in the preceding quarter. In 166
addition to the nonadmitted policy fee provided for herein, 167
surplus lines insurance producers placing insurance through 168
nonadmitted insurers shall collect and remit excess deficit 169
surcharges as provided by this chapter. Surplus lines insurance 170
producers placing insurance through nonadmitted insurers may 171
designate another surplus lines insurance producer that actually 172
procured the insurance from the nonadmitted carrier to collect and 173
remit the nonadmitted policy fees. 174
(5) Each insured in this state who directly procures or 175
renews insurance with a nonadmitted insurer on properties, risks 176
or exposures located or to be performed, in whole or in part, in 177
this state, other than insurance procured through a surplus lines 178
licensee, shall be subject to the nonadmitted policy fee which 179
shall be paid by the insured according to the procedures provided 180
for premium taxes in Section 83-21-17(5). 181
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(6) Monies derived from the nonadmitted policy fee collected 182
under this section shall not be considered public funds and may be 183
used by the association, in addition to any uses provided for in 184
Section 83-34-3(4), for education, public outreach, training of 185
building officials and other programs targeted to reduce the 186
number of policies within the association; however, beginning on 187
July 1, 2018, and ending on June 30, 2019, before any fees are 188
remitted to the association, One Million Five Hundred Thousand 189
Dollars ($1,500,000.00) shall be diverted and deposited into the 190
Capital Expense Fund * * *. Further, beginning July 1, 2022, 191
before any fees are remitted to the association but only if the 192
association will receive at least sixty percent (60%) of the fees, 193
Five Hundred Thousand Dollars ($500,000.00) shall be diverted and 194
deposited annually into the Mississippi First Responders Health 195
and Safety Trust Fund created in Section 25-15-411. * * * 196
In the event the value of the association's Total Admitted 197
Assets, as defined by the audited financial statement, is less 198
than Two Hundred Fifty Million Dollars ($250,000,000.00), the 199
monies diverted and not remitted to the association under this 200
subsection (6) during that fiscal year and subsequent fiscal years 201
shall immediately be diverted to the association and shall not be 202
considered public funds. 203
(7) The association may use excess funds to purchase 204
reinsurance in an amount that may exceed the total premiums 205
collected from policyholders. 206
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SECTION 7. Section 83-1-191, Mississippi Code of 1972, is 207
brought forward as follows: 208
83-1-191. (1) There is established within the Department of 209
Insurance a Comprehensive Hurricane Damage Mitigation Program. 210
This section does not create an entitlement for property owners or 211
obligate the state in any way to fund the inspection or 212
retrofitting of residential property or commercial property in 213
this state. Implementation of this program is subject to the 214
availability of funds that may be appropriated by the Legislature 215
for this purpose. The program may develop and implement a 216
comprehensive and coordinated approach for hurricane damage 217
mitigation that may include the following: 218
(a) Cost-benefit study on wind hazard mitigation 219
construction measures. The performance of a cost-benefit study to 220
establish the most appropriate wind hazard mitigation construction 221
measures for both new construction and the retrofitting of 222
existing construction for both residential and commercial 223
facilities within the wind-borne debris regions of Mississippi as 224
defined by the International Building Code. The recommended wind 225
construction techniques shall be based on both the newly adopted 226
Mississippi building code sections for wind load design and the 227
wind-borne debris region. The list of construction measures to be 228
considered for evaluation in the cost-benefit study shall be based 229
on scientifically established and sound, but common, construction 230
techniques that go above and beyond the basic recommendations in 231
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the adopted building codes. This allows residents to utilize 232
multiple options that will further reduce risk and loss and still 233
be awarded for their endeavors with appropriate wind insurance 234
discounts. It is recommended that existing accepted scientific 235
studies that validate the wind hazard construction techniques 236
benefits and effects be taken into consideration when establishing 237
the list of construction techniques that homeowners and business 238
owners can employ. This will ensure that only established 239
construction measures that have been studied and modeled as 240
successful mitigation measures will be considered to reduce the 241
chance of including risky or unsound data that will cost both the 242
property owner and state unnecessary losses. The cost-benefit 243
study shall be based on actual construction cost data collected 244
for several types of residential construction and commercial 245
construction materials, building techniques and designs that are 246
common to the region. The study shall provide as much information 247
as possible that will enhance the data and options provided to the 248
public, so that homeowners and business owners can make informed 249
and educated decisions as to their level of involvement. Based on 250
the construction data, modeling shall be performed on a variety of 251
residential and commercial designs, so that a broad enough 252
representative spectrum of data can be obtained. The data from 253
the study will be utilized in a report to establish tables 254
reflecting actuarially appropriate levels of wind insurance 255
discounts (in percentages) for each mitigation construction 256
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technique/combination of techniques. This report will be utilized 257
as a guide for the Department of Insurance and the insurance 258
industry for developing actuarially appropriate discounts, credits 259
or other rate differentials, or appropriate reductions in 260
deductibles, for properties on which fixtures or construction 261
techniques demonstrated to reduce the amount of loss in a 262
windstorm have been installed or implemented. Additional data 263
that will enhance the program, such as studies to reflect property 264
value increases for retrofitting or building to the established 265
wind hazard mitigation construction techniques and cost comparison 266
data collected to establish the value of this program against the 267
investment required to include the mitigation measures, also may 268
be provided. 269
(b) Wind certification and hurricane mitigation 270
inspections. 271
(i) Home-retrofit inspections of site-built, 272
residential property, including single-family, two-family, 273
three-family or four-family residential units, and a set of 274
representative commercial facilities may be offered to determine 275
what mitigation measures are needed and what improvements to 276
existing residential properties are needed to reduce the 277
property's vulnerability to hurricane damage. A state program may 278
be established within the Department of Insurance to provide 279
homeowners and business owners wind certification and hurricane 280
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mitigation inspections. The inspections provided to homeowners 281
and business owners, at a minimum, must include: 282
1. A home inspection and report that 283
summarizes the results and identifies corrective actions a 284
homeowner may take to mitigate hurricane damage. 285
2. A range of cost estimates regarding the 286
mitigation features. 287
3. Insurer-specific information regarding 288
premium discounts correlated to recommended mitigation features 289
identified by the inspection. 290
4. A hurricane resistance rating scale 291
specifying the home's current as well as projected wind resistance 292
capabilities. 293
This data may be provided by trained and certified inspectors 294
in standardized reporting formats and forms to ensure all data 295
collected during inspections is equivalent in style and content 296
that allows construction data, estimates and discount information 297
to be easily assimilated into a database. Data pertaining to the 298
number of inspections and inspection reports may be stored in a 299
state database for evaluation of the program's success and review 300
of state goals in reducing wind hazard loss in the state. 301
(ii) To qualify for selection by the department as 302
a provider of wind certification and hurricane mitigation 303
inspections services, the entity shall, at a minimum, and on a 304
form and in the manner prescribed by the commissioner: 305
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1. Use wind certification and hurricane 306
mitigation inspectors who: 307
a. Have prior experience in residential 308
and/or commercial construction or inspection and have received 309
specialized training in hurricane mitigation procedures through 310
the state certified program. In order to qualify for training in 311
the inspection process, the individual should be either a licensed 312
building code official, a licensed contractor or inspector in the 313
State of Mississippi, or a civil engineer. 314
b. Have undergone drug testing and 315
background checks. 316
c. Have been certified through a state 317
mandated training program, in a manner satisfactory to the 318
department, to conduct the inspections. 319
d. Have not been convicted of a felony 320
crime of violence or of a sexual offense; have not received a 321
first-time offender pardon or nonadjudication order for a felony 322
crime of violence or of a sexual offense; or have not entered a 323
plea of guilty or nolo contendere to a felony charge of violence 324
or of a sexual offense. 325
e. Submit a statement authorizing the 326
Commissioner of Insurance to order fingerprint analysis or any 327
other analysis or documents deemed necessary by the commissioner 328
for the purpose of verifying the criminal history of the 329
individual. The commissioner shall have the authority to conduct 330
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criminal history verification on a local, state or national level, 331
and shall have the authority to require the individual to pay for 332
the costs of such criminal history verification. 333
2. Provide a quality assurance program 334
including a reinspection component. 335
3. Have data collection equipment and 336
computer systems, so that data can be submitted electronically to 337
the state's database of inspection reports, insurance 338
certificates, and other industry information related to this 339
program. It is mandatory that all inspectors provide original 340
copies to the property owner of any inspection reports, estimates, 341
etc., pertaining to the inspection and keep a copy of all 342
inspection materials on hand for state audits. 343
(c) Financial grants to retrofit properties. Financial 344
grants may be used to encourage single-family, site-built, 345
owner-occupied, residential property owners or commercial property 346
owners to retrofit their properties to make them less vulnerable 347
to hurricane damage. No financial grant made under this section 348
shall exceed Ten Thousand Dollars ($10,000.00) per recipient. 349
(d) Education and consumer awareness. Multimedia 350
public education, awareness and advertising efforts designed to 351
specifically address mitigation techniques may be employed, as 352
well as a component to support ongoing consumer resources and 353
referral services. In addition, all insurance companies shall 354
provide notification to their clients regarding the availability 355
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of this program, participation details, and directions to the 356
state website promoting the program, along with appropriate 357
contact phone numbers to the state agency administrating the 358
program. The notification to the clients must be sent by the 359
insurance company within thirty (30) days after filing their 360
insurance discount schedules with the Department of Insurance. 361
(e) Advisory council. There is created an advisory 362
council to provide advice and assistance to the program 363
administrator with regard to his or her administration of the 364
program. The advisory council shall consist of: 365
(i) An agent, selected by the Independent 366
Insurance Agents of Mississippi. 367
(ii) Two (2) representatives of residential 368
property insurers, selected by the Department of Insurance. 369
(iii) One (1) representative of homebuilders, 370
selected by the Home Builders Association of Mississippi. 371
(iv) The Chairman of the House Insurance 372
Committee, or his designee. 373
(v) The Chairman of the Senate Insurance 374
Committee, or his designee. 375
(vi) The Executive Director of the Mississippi 376
Windstorm Underwriting Association, or his designee. 377
(vii) The Director of the Mississippi Emergency 378
Management Agency, or his designee. 379
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Members appointed under subparagraphs (i) and (ii) shall 380
serve at the pleasure of the Department of Insurance. All other 381
members shall serve as voting ex officio members. Members of the 382
advisory council who are not legislators, state officials or state 383
employees shall be compensated at the per diem rate authorized by 384
Section 25-3-69, and shall be reimbursed in accordance with 385
Section 25-3-41, for mileage and actual expenses incurred in the 386
performance of their duties. Legislative members of the advisory 387
council shall be paid from the contingent expense funds of their 388
respective houses in the same manner as provided for committee 389
meetings when the Legislature is not in session; however, no per 390
diem or expense for attending meetings of the advisory council may 391
be paid while the Legislature is in session. No advisory council 392
member may incur per diem, travel or other expenses unless 393
previously authorized by vote, at a meeting of the council, which 394
action shall be recorded in the official minutes of the meeting. 395
Nonlegislative members shall be paid from any funds made available 396
to the advisory council for that purpose. 397
(f) Rules and regulations. The Department of Insurance 398
may adopt rules and regulations governing the Comprehensive 399
Hurricane Damage Mitigation Program. The department also may 400
adopt rules and regulations establishing priorities for grants 401
provided under this section based on objective criteria that gives 402
priority to reducing the state's probable maximum loss from 403
hurricanes. However, pursuant to this overall goal, the 404
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department may further establish priorities based on the insured 405
value of the dwelling, whether or not the dwelling is insured by 406
the Mississippi Windstorm Underwriting Association and whether or 407
not the area under consideration has sufficient resources and the 408
ability to perform the retrofitting required. 409
(2) Nothing in this section shall prohibit the Department of 410
Insurance from entering into an agreement with any other 411
appropriate state agency to assist with or perform any of the 412
duties set forth hereunder. 413
(3) The Department of Insurance shall issue a request for 414
proposals to contract with a third party for the administration of 415
the Comprehensive Hurricane Damage Mitigation Program. The 416
contract for the third-party administrator shall be funded from 417
monies in the Comprehensive Hurricane Damage Mitigation Program 418
Fund created in subsection (4) of this section, and that amount 419
shall not exceed one percent (1%) of the funds appropriated to the 420
Department of Insurance for the program. If the third-party 421
administrator selected through the request for proposals is 422
replaced or is otherwise changed, the Department of Insurance 423
shall notify the Chairs of the House and Senate Appropriations and 424
Insurance Committees. 425
(4) There is created a special fund in the State Treasury to 426
be known as the Comprehensive Hurricane Damage Mitigation Program 427
Fund. The fund shall consist of any monies from any source that 428
are designated or made available for deposit into the fund. The 429
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Department of Insurance may apply for any federal or private 430
grants to provide additional funds for the special fund. Monies 431
in the fund shall be expended by the Department of Insurance, upon 432
appropriation by the Legislature, for the purposes as provided in 433
this section. Unexpended amounts remaining in the fund at the end 434
of a fiscal year shall not lapse into the State General Fund, and 435
any interest earned or investment earnings on amounts in the fund 436
shall be deposited into such fund. 437
(5) This section shall stand repealed from and after July 1, 438
2028. 439
SECTION 8. Section 83-1-201, Mississippi Code of 1972, is 440
brought forward as follows: 441
83-1-201. (1) There is created the Mississippi Windstorm 442
Mitigation Coordinating Council for the purpose of developing and 443
implementing a comprehensive and coordinated approach for 444
windstorm mitigation. The council shall consist of the following: 445
(a) The Commissioner of Insurance, or his designee, to 446
serve ex officio; 447
(b) The Chairman of the Board of Directors of the 448
Mississippi Insurance Windstorm Underwriting Association, or his 449
designee, to serve ex officio; 450
(c) Two (2) members who are property and casualty 451
insurance providers appointed by the Governor, to serve at his 452
will and pleasure; 453
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(d) Two (2) members who are insurance producers from 454
the Coast Area, as defined under Section 83-34-1, appointed by the 455
Commissioner of Insurance, to serve at his will and pleasure; 456
(e) One (1) member from the Home Builders Association 457
of Mississippi or the State Board of Contractors appointed by the 458
Commissioner of Insurance, to serve at his will and pleasure; 459
(f) One (1) nonvoting member from the Institute for 460
Business and Home Safety appointed by the Governor, to serve at 461
his will and pleasure; 462
(g) One (1) member who is a representative of the state 463
institutions of higher learning appointed by the Commissioner of 464
Higher Education to serve at his will and pleasure, nonvoting; 465
(h) The Director of the Mississippi State Rating 466
Bureau, or his designee, to serve ex officio, nonvoting; and 467
(i) The Chief Deputy State Fire Marshal, or his 468
designee, to serve ex officio, nonvoting. 469
(2) The Commissioner of Insurance shall convene the first 470
meeting of the council within ninety (90) days of July 1, 2011, 471
and shall act as temporary chairman until the council elects from 472
its members a chairman and vice chairman. The council shall adopt 473
regulations consistent with this section, subject to the approval 474
of the Commissioner of Insurance. The council may also consider 475
the mitigation measures and initiatives referenced under Section 476
83-1-191 in developing and implementing a windstorm mitigation 477
program. A meeting may be called by the chairman on his own 478
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initiative and must be called by him at the request of three (3) 479
or more members of the council. Each member must be notified by 480
the chairman in writing of the time and place of the meeting at 481
least seven (7) days before the meeting. Four (4) voting members 482
constitute a quorum. Each meeting is open to the public. An 483
official decision of the council may be made only by a vote of a 484
majority of those voting members in attendance at the meeting. 485
(3) The Mississippi Building Codes Council created under 486
Section 17-2-3 shall serve as an advisory council to the council 487
created under this section. 488
(4) (a) There is created in the State Treasury a special 489
fund to be designated as the "Mississippi Windstorm Mitigation 490
Fund." The fund shall consist of monies appropriated by act of 491
the Legislature and monies from any other public or private source 492
designated for deposit into the fund. Unexpended amounts 493
remaining in the fund at the end of a fiscal year shall not lapse 494
into the State General Fund, and any interest earned or investment 495
earnings on amounts in the fund shall be deposited to the credit 496
of the fund. 497
(b) Monies in the special fund may be used by the 498
Department of Insurance, upon appropriation by the Legislature, 499
only for the purposes of assisting the Mississippi Windstorm 500
Mitigation Coordinating Council in developing and implementing a 501
comprehensive and coordinated approach for windstorm mitigation 502
including providing grants, developing education programs, 503
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providing funds for training local officials or providing any 504
other assistance consistent with these purposes. 505
SECTION 9. Section 83-34-1, Mississippi Code of 1972, is 506
brought forward as follows: 507
83-34-1. In this chapter, unless the context otherwise 508
requires: 509
(a) "Essential property insurance" means insurance 510
against direct loss to property from the risk of windstorm and 511
hail in the manner as defined and limited in the standard real 512
property and contents insurance forms approved by the 513
commissioner. Essential property insurance may include coverage 514
for either the actual cash value or replacement cost value of the 515
structure and contents. Essential property insurance includes 516
builders risks coverage. The extent of risk covered, the insuring 517
language and the exclusions are all subject to approval by the 518
commissioner. Policies, rules and rates shall be filed with the 519
commissioner in the manner provided for insurance companies. 520
(b) "Association" means the Mississippi Windstorm 521
Underwriting Association established pursuant to the provisions of 522
this chapter. 523
(c) "Plan of operation" means the plan of operation of 524
the association approved or promulgated by the commissioner 525
pursuant to the provisions of this chapter. 526
(d) "Insurable property" means real property, and 527
contents therein when requested, at fixed locations in the coast 528
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area, which property is determined by the association to be in an 529
insurable condition and otherwise meets the underwriting 530
requirements of the association. Any one- or two-family dwelling 531
built, rebuilt, altered or remodeled in compliance with the 532
applicable building codes, including design-wind requirements, 533
that is not otherwise rendered uninsurable by reason of use, 534
occupancy or state of repair, shall be an insurable risk. 535
Neighborhood area, location and environmental hazards beyond the 536
control of the applicant or owner of the property shall not be 537
considered in determining insurable condition. "Insurable 538
property" shall not include insurance on motor vehicles or 539
creditor placed insurance on mobile homes. "Insurable property" 540
includes mobile homes, modular homes or manufactured housing that 541
are installed in compliance with applicable codes. 542
(e) "Commissioner" means the Insurance Commissioner of 543
the State of Mississippi. 544
(f) "Coast area" means Hancock, Harrison, Jackson, 545
Pearl River, Stone and George Counties. 546
(g) (i) "Net direct premiums," for purposes of 547
calculating percentages of participation for assessable insurers 548
for the year 2007, means gross direct premiums, excluding 549
reinsurance assumed and ceded, written on property in this state 550
for the risk of windstorm and hail less return premiums upon 551
cancelled contracts, dividends paid or credited to policyholders, 552
or the unused or unabsorbed portion of premium deposits. "Net 553
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direct premiums" includes the premium charge component for the 554
risk of windstorm and hail to property in all policies, including 555
multiperil and other policies that package or combine coverage for 556
other risks. The plan of operation shall prescribe the portion of 557
premium allocated for the risk of windstorm and hail in multiperil 558
and other policies that package or combine coverage for other 559
risks. "Net direct premiums" shall not include farm property. 560
"Net direct premiums" shall not include the property components of 561
motor vehicles and other mobile property, but includes premiums 562
for the risks of windstorm and hail for mobile homes, modular 563
homes or manufactured housing. 564
(ii) "Net direct premiums," for purposes of 565
calculating percentages of participation for assessable insurers 566
after the year 2007, means those premiums reported by the 567
assessable insurers in their annual statements to the Department 568
of Insurance that were charged for insurance for any and all risks 569
on real property and contents in the state. The department shall 570
determine which lines of real property and contents insurance 571
shall be included in the calculation of net direct premiums. The 572
included real property and contents insurance lines may be changed 573
from time to time in the discretion of the commissioner. "Net 574
direct premiums" shall not include premiums for insuring farm 575
property that are reported timely to the association as provided 576
in the plan of operation. 577
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(iii) The commissioner is authorized and directed 578
to provide to the association annual statements, other reports and 579
any statistics necessary to provide the information herein 580
required and which the commissioner is hereby authorized and 581
empowered to obtain from any assessable insurer. 582
(h) "Farm property" means property used for farming 583
purposes; however, it shall not include any property used for 584
dwelling purposes or any outbuildings used in connection 585
therewith. 586
(i) "Losses" includes expenses for the adjustment and 587
resolution of claims and operational and other general expenses. 588
(j) "Bonds, loans, lines of credit and indebtedness" 589
include interest, finance charges, and any and all other costs 590
associated with the financing. 591
(k) "Percentage of participation" for an assessable 592
insurer means the percentage determined by dividing the assessable 593
insurers net direct premiums written in this state in the previous 594
year by the aggregate net direct premiums written in this state by 595
all assessable insurers of the association in the previous year. 596
The percentage of participation may be modified as provided in 597
Sections 83-34-9(3) and 83-34-13(2). 598
(l) "Nonadmitted insurers" means those insurance 599
companies defined in Section 83-21-17, and any other companies and 600
persons selling insurance on risks in Mississippi that are not 601
licensed to do business in the State of Mississippi. 602
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(m) "Agents placing insurance through nonadmitted 603
insurers" means those agents defined in Section 83-21-19 and any 604
other agents placing insurance through a nonadmitted insurer. 605
(n) "Assessable insurer" means each and every insurer 606
authorized to write, and engaged in writing, property insurance 607
within this state on a direct basis. 608
(o) "Minimum reserve" means an amount set forth in the 609
plan of operation which is maintained by the association for the 610
payment of salaries and other expenses necessary for the 611
continuous and ongoing operation of the association. 612
(p) "Recoupable assessment" means any assessment, in 613
whole or in part, that is levied on and payable by assessable 614
insurers to the association which is directly recoverable from 615
policyholders for any covered event. Any assessment levied due to 616
a covered event occurring during the calendar year 2019 shall be a 617
recoupable assessment. 618
(q) "Nonrecoupable assessment" means any assessment 619
levied on and payable by assessable insurers to the association 620
which is not directly recoverable from policyholders. 621
(r) "Excess deficit" means a deficit that exceeds 622
available surplus, reinsurance, recoupable and nonrecoupable 623
assessments and other reasonably available assets of the 624
association. The minimum reserve, as set forth in the plan of 625
operation, shall not be considered reasonably available assets of 626
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the association when determining whether an excess deficit has 627
occurred. 628
(s) "Covered event" means an event, such as a 629
hurricane, other windstorm or hailstorm, which causes losses 630
covered by the policies issued by the association to its 631
policyholders. 632
SECTION 10. Section 83-34-3, Mississippi Code of 1972, is 633
brought forward as follows: 634
83-34-3. (1) From and after March 22, 2007, the Mississippi 635
Windstorm Underwriting Association, as created by Chapter 459, 636
Laws of 1987, shall be a separate and independent entity as 637
provided for herein. At its option, the association may 638
incorporate. All assets belonging to the association on or before 639
March 22, 2007, shall hereinafter belong to and remain with the 640
association. There shall be no distribution of income or assets 641
other than for the benefit of the association, which shall have 642
the right to invest and reinvest assets. 643
(2) From and after March 22, 2007, the association shall no 644
longer have members. Former "members" of the association shall be 645
"assessable insurers" and shall have no rights to the assets and 646
profits of the association, but shall have the obligation for 647
regular assessments as provided herein. Former members shall 648
continue to have the obligations provided in this chapter before 649
March 22, 2007, for all policyholder claims, costs, damages of any 650
kind and expenses in any manner resulting from losses that 651
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occurred before March 22, 2007, for which the association may 652
assess as needed the former members in the manner provided in this 653
chapter before March 22, 2007. As a condition of its authority to 654
continue to transact the business of insurance in this state and 655
by transacting business in this state, each licensed insurer 656
agrees to be bound by the provisions of this statute and the plan 657
of operation as approved by the commissioner, and all amendments 658
and revisions thereto. 659
(3) Any licensed insurer first authorized to write insurance 660
after March 22, 2007, shall become an assessable insurer on the 661
first day of January immediately following such authorization. 662
The determination of such insurer's participation in the 663
association shall be made based upon writings in the prior year in 664
the same manner as for all other assessable insurers of the 665
association. 666
(4) Except as provided for in Section 83-34-4(6), the 667
premiums, recoupable and nonrecoupable assessments, fees, 668
investment income and other revenue of the association are funds 669
received for the sole purpose of providing insurance coverage, 670
paying claims for Mississippi citizens insured by the association, 671
securing and repaying debt obligations issued by the association, 672
and conducting all other activities of the association, all as 673
required or permitted by this chapter. Such revenue shall not be 674
considered taxes, fees, licenses or charges for services imposed 675
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by the State of Mississippi on individuals, businesses, or 676
agencies, and shall not be used for other purposes. 677
(5) It is the intent of the Legislature that the association 678
be and act as a nonprofit entity. The association shall be free 679
from taxation of every kind by the state and any political 680
subdivision or other instrumentality thereof. It is the intent of 681
the Legislature that the association be tax exempt from all taxes, 682
including federal taxes, and the association is granted the 683
authority to take those steps necessary to obtain federal tax 684
exempt status. 685
(6) Any debt obligations issued by the association, their 686
transfer, and the income therefrom, including any profit made on 687
the sale thereof, shall at all times be free from taxation of 688
every kind by the state and any political subdivision or other 689
instrumentality thereof. 690
(7) In the event of the termination of the association by 691
act of the Legislature, or other means, the assets of the 692
association shall be applied first to pay all debts, liabilities 693
and obligations of the association, including the establishment of 694
reasonable reserves for any contingent liabilities or obligations, 695
and all remaining assets of the association shall become property 696
of the state. 697
(8) The association shall operate as a private enterprise 698
and shall not be subject to the procurement provisions of Section 699
31-7-13, and policies and decisions of the association, including, 700
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but not limited to, decisions relating to incurring debt, levying 701
of recoupable and nonrecoupable assessments, the issuance and sale 702
of bonds, claims decisions under association policies, hiring and 703
firing of employees, and all services relating to the operation of 704
the association shall not be subject to the provisions of Section 705
25-9-101 et seq. The association shall not be required to obtain 706
or to hold a license or certificate of authority issued by the 707
commissioner or any other office. The association shall not be 708
required to participate as a member insurer of the Mississippi 709
Insurance Guaranty Association. 710
SECTION 11. Section 83-34-5, Mississippi Code of 1972, is 711
brought forward as follows: 712
83-34-5. The association shall, pursuant to the provisions 713
of this chapter and the plan of operation, and with respect to 714
essential property insurance on insurable property, have the 715
power: 716
(a) To issue policies of essential property insurance 717
on insurable property to applicants; 718
(b) At its option, and with consent of the 719
commissioner, to issue policies of related essential property 720
insurance on insurable property to applicants; 721
(c) To purchase reinsurance for all or part of the 722
risks of the association; 723
(d) To levy and collect recoupable and nonrecoupable 724
assessments from assessable insurers; 725
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(e) To issue bonds or incur other forms of 726
indebtedness, including, but not limited to, loans, lines of 727
credit or letters of credit; 728
(f) To establish underwriting criteria consistent with 729
the provisions of this chapter and as approved by the 730
commissioner; 731
(g) To invest and reinvest income and assets subject to 732
the oversight of the commissioner; 733
(h) To enter into contractual agreements with third 734
parties, including the Mississippi Windstorm Mitigation 735
Coordinating Council, for the purposes of developing and 736
implementing windstorm mitigation programs; and 737
(i) All other powers necessary to carry out the 738
provisions and intent of this chapter. 739
SECTION 12. Section 83-34-7, Mississippi Code of 1972, is 740
brought forward as follows: 741
83-34-7. (1) The Board of Directors of the Mississippi 742
Insurance Underwriting Association as presently constituted shall 743
serve as the temporary board of directors of the association. 744
Such temporary board of directors shall prepare and submit a plan 745
of operation in accordance with Section 83-34-13 and shall serve 746
until the permanent board of directors shall take office in 747
accordance with the plan of operation. The permanent board shall 748
consist of five (5) representatives of the members to be appointed 749
by the temporary board of directors subject to the approval of the 750
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commissioner and three (3) agents from the coast area to be 751
appointed by the commissioner. The terms of the members of the 752
board of directors in place before March 22, 2007, shall expire on 753
March 22, 2007, and such persons shall cease to serve on the board 754
and shall relinquish all power and control of the association. 755
(2) (a) From and after March 22, 2007, the board of 756
directors of the association shall consist of the following: 757
(i) The State Treasurer; 758
(ii) Five (5) of the assessable insurer companies, 759
three (3) to be appointed by the commissioner, one (1) to be 760
appointed by the Governor, and one (1) to be appointed by the 761
Lieutenant Governor; each such assessable insurer appointed shall 762
designate a representative knowledgeable in the matters of the 763
association and authorize such representative to act and vote on 764
its behalf; 765
(iii) Three (3) agents with no less than ten (10) 766
years' experience in the property and casualty industry, two (2) 767
of whom are residents in the coast area, and one (1) of whom is 768
not a resident of the coast area; one (1) such coast area agent to 769
be appointed by the Governor, one (1) such coast area agent to be 770
appointed by the Lieutenant Governor, and the noncoast area agent 771
to be appointed by the commissioner; and 772
(iv) Two (2) business leaders who have been 773
residents of the coast area for no less than ten (10) years and 774
who have no less than ten (10) years' experience in management of 775
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a business, one (1) to be appointed by the Governor, and one (1) 776
to be appointed by the Lieutenant Governor. 777
(b) Except for the State Treasurer, the board members 778
shall serve three-year terms with each term beginning on January 779
1, and the initial terms shall be staggered in the following 780
manner: 781
(i) The initial term for three (3) of the 782
assessable insurers shall begin on March 22, 2007, and expire on 783
December 31, 2010, thereafter to be appointed for three-year 784
terms; 785
(ii) The initial term for one (1) of the 786
assessable insurers shall begin on March 22, 2007, and expire on 787
December 31, 2009, thereafter to be appointed for three-year 788
terms; 789
(iii) The initial term for one (1) of the 790
assessable insurers shall begin on March 22, 2007, and expire on 791
December 31, 2008, thereafter to be appointed for three-year 792
terms; 793
(iv) The initial term for one (1) of the agents 794
shall begin on March 22, 2007, and expire on December 31, 2010, 795
thereafter to be appointed for three-year terms; 796
(v) The initial term for one (1) of the agents 797
shall begin on March 22, 2007, and expire on December 31, 2009, 798
thereafter to be appointed for three-year terms; 799
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(vi) The initial term for one (1) of the agents 800
shall begin on March 22, 2007, and expire on December 31, 2008, 801
thereafter to be appointed for three-year terms; 802
(vii) The initial term for one (1) of the business 803
leaders shall begin on March 22, 2007, and expire on December 31, 804
2010, thereafter to be appointed for three-year terms; 805
(viii) The initial term for one (1) of the 806
business leaders shall begin on March 22, 2007, and expire on 807
December 31, 2008, thereafter to be appointed for three-year 808
terms. 809
(3) On or before March 22, 2007, the appropriate public 810
official shall make such appointments and request such 811
resignations from the existing board as are appropriate to comply 812
with this section. 813
(4) The board shall be staffed by as many employees as it 814
deems necessary. 815
(5) The board of directors has the power to act and make 816
binding decisions on behalf of the association on all issues. 817
SECTION 13. Section 83-34-9, Mississippi Code of 1972, is 818
brought forward as follows: 819
83-34-9. (1) All assessable insurers of the association 820
shall participate in recoupable and nonrecoupable assessments 821
levied by the association based upon their percentage of 822
participation. The association may allow affiliated insurers to 823
combine their annual net direct premiums and other data, including 824
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data that supports any incentives that may be allowed by the 825
association, to the extent that such grouping promotes the 826
voluntary writing of essential property insurance in the coast 827
area. Any provisions for credits and grouping of data shall be 828
prescribed in the plan of operation. 829
(2) All profits of the association shall remain as assets of 830
the association. 831
(3) The plan of operation shall provide financial incentives 832
or financial penalties, or both, to ensure that assessable 833
insurers write essential property insurance in the coast area. 834
The incentives and penalties may include, but are not limited to, 835
a reduction in recoupable and nonrecoupable assessments, 836
adjustments in the percentage of participation, and other 837
incentives and penalties as provided in the plan of operation. 838
The commissioner shall approve the plan of operation as provided 839
in Section 83-34-13. 840
SECTION 14. Section 83-34-10, Mississippi Code of 1972, is 841
brought forward as follows: 842
83-34-10. (1) In the event of a covered event that may 843
produce losses in excess of funds that may be immediately 844
available to the association, or in the event that the association 845
determines that it will otherwise have a claim deficit or any 846
other deficit, then the association, with consent of the 847
commissioner, shall have the power to levy recoupable and 848
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nonrecoupable assessments against assessable insurers based upon 849
their percentage of participation. 850
The minimum reserve, as set forth in the plan of operation, 851
shall not be considered as funds available to the association in 852
determining whether to levy a recoupable or nonrecoupable 853
assessment. 854
(2) A nonrecoupable assessment levied under this section 855
shall not exceed six percent (6%) of the association's year-end 856
total limits in force for the preceding calendar year, or Two 857
Hundred Fifty Million Dollars ($250,000,000.00), whichever is 858
less. Further, in any calendar year, the annual total of all 859
nonrecoupable assessment funds collected shall not exceed, in the 860
aggregate, Two Hundred Fifty Million Dollars ($250,000,000.00). 861
SECTION 15. Section 83-34-12, Mississippi Code of 1972, is 862
brought forward as follows: 863
83-34-12. The recoupable or nonrecoupable assessment of an 864
assessable insurer may, after hearing, be ordered deferred, in 865
whole or in part, upon application by the insurer if, in the 866
opinion of the commissioner, payment of the recoupable or 867
nonrecoupable assessment would render the insurer insolvent or in 868
danger of insolvency, or would otherwise leave the insurer in such 869
a condition that further transaction of the insurer's business 870
would be hazardous to its policyholders, creditors, assessable 871
insurers, subscribers, stockholders or the public. If that 872
payment of a recoupable or nonrecoupable assessment against an 873
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assessable insurer is deferred by order of the commissioner, in 874
whole or in part, the amount by which the recoupable or 875
nonrecoupable assessment is deferred shall be assessed against 876
other assessable insurers in the same manner as provided in 877
Section 83-34-9. 878
SECTION 16. Section 83-34-13, Mississippi Code of 1972, is 879
brought forward as follows: 880
83-34-13. (1) Within forty-five (45) days after March 22, 881
2007, the directors of the association shall submit to the 882
commissioner for review and approval a proposed plan of operation 883
revised to be consistent with the provisions of Chapter 425, Laws 884
of 2007. The association shall maintain a plan of operation. The 885
plan shall provide for the efficient, economical, fair and 886
nondiscriminatory administration of the association. The plan may 887
include the establishment of a minimum reserve, methods for the 888
nonrecoupable assessment of all assessable insurers for deficits 889
and expenses, the establishment of necessary facilities, 890
management of the association, underwriting standards, procedures 891
for determining the amounts of insurance to be provided to 892
specific risks, time limits and procedures for processing 893
applications for insurance, and for such other provisions as may 894
be deemed necessary by the board to carry out the purposes of this 895
chapter. The plan of operation shall include in the plan of 896
operation a mechanism for recoupment of recoupable assessments. 897
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(2) The plan of operation shall provide financial incentives 898
or financial penalties, or both, to ensure that assessable 899
insurers write essential property insurance in the coast area. 900
The incentives and penalties may include, but are not limited to, 901
a reduction in nonrecoupable assessments, adjustments in the 902
percentage of participation, and other incentives and penalties as 903
provided in the plan of operation. 904
(3) The plan of operation shall provide (a) that the 905
association shall offer a two percent (2%) deductible for loss 906
from named storms; and (b) that the association shall also offer 907
options for other deductibles for loss from named storms with 908
appropriate rate reductions that shall include at least a twenty 909
percent (20%) deductible for loss from named storms. 910
(4) The plan of operation shall provide that the association 911
use actuarially appropriate geographical zones for rating and for 912
the use of credits and penalties to encourage voluntary writing in 913
the coast area. 914
(5) The commissioner shall approve the plan of operation and 915
all amendments before they become effective. It is the obligation 916
of the commissioner to confirm that such plan fulfills the 917
purposes of this chapter. If the commissioner approves a proposed 918
plan or amendment, he shall certify the approval to the directors, 919
and the plan, or amendment thereto, shall become effective ten 920
(10) days after such certification. If the commissioner 921
disapproves all or any part of the proposed plan of operation, or 922
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amendment thereto, he shall return the same to the directors with 923
a written statement giving the reasons for disapproval and any 924
recommendations the commissioner may wish to make. Within ten 925
(10) days thereafter, the directors may alter the plan or 926
amendment in accordance with the commissioner's recommendation or 927
may return a new plan to the commissioner. The commissioner shall 928
consider the proposals and shall then promulgate and place into 929
effect a plan of operation certifying the same to the directors of 930
the association after approval by the board of directors. Any 931
such plan promulgated by the commissioner shall take effect ten 932
(10) days after certification to the directors. 933
(6) The commissioner may review the plan of operation at any 934
time he deems expedient or prudent. After review of the plan, the 935
commissioner may amend the plan after consultation with the 936
directors of the association and upon certification to the 937
directors of the amendment. 938
SECTION 17. Section 83-34-15, Mississippi Code of 1972, is 939
brought forward as follows: 940
83-34-15. (1) (a) Any person having an insurable interest 941
in insurable property is entitled to apply to the association for 942
such coverage. Applications shall be made on behalf of the owner 943
of the insurable interest by a licensed resident broker or agent 944
authorized by him. Applications shall be submitted on forms 945
prescribed by the association. 946
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(b) The association may require an inspection of any 947
properties after application or request for renewal and may charge 948
a fee for such inspection. 949
(c) The term "insurable interest" as used in this 950
subsection shall be deemed to include any lawful and substantial 951
economic interest in the safety or preservation of property from 952
loss, destruction or pecuniary damage. 953
(2) If the association determines that the property is 954
insurable and that there is no unpaid premium due from the 955
applicant for prior insurance on the property, the association, 956
upon receipt of the premium or such portion thereof as is 957
prescribed in the plan of operation, shall cause to be issued, or 958
issue, a policy of essential property insurance. Such coverage 959
shall be dependent upon the timely payment and actual receipt by 960
the association of premiums or premium installments as provided 961
for at the time of application. Coverage limits shall be 962
determined by the value of the insurable property at the time the 963
policy is issued subject to maximum limits which shall be set 964
forth under the plan of operation. 965
(3) If the association for any reason denies an application 966
and refuses to issue or cause to be issued an insurance policy to 967
any applicant, or takes no action on an application within the 968
time prescribed in the plan of operation, such applicant may 969
appeal to the commissioner. The commissioner or a designated 970
member of his staff, after reviewing the facts, may direct the 971
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association to issue or cause to be issued an insurance policy to 972
the applicant; however, no coverage shall be in effect until such 973
time as the premium is paid and the policy issued. In carrying 974
out his duties pursuant to this section, the commissioner may 975
request, and the association shall provide, any information the 976
commissioner deems necessary to a determination concerning the 977
reasons for the denial or delay of the application. 978
SECTION 18. Section 83-34-16, Mississippi Code of 1972, is 979
brought forward as follows: 980
83-34-16. The Mississippi Windstorm Underwriting Association 981
shall provide a premium discount for any individual who builds a 982
"fortified home" pursuant to the Institute for Business and Home 983
Safety (IBHS). Licensed architects, engineers or inspectors 984
certified by the Department of Insurance shall determine whether a 985
dwelling meets the criteria for a "fortified home" pursuant to the 986
Institute for Business and Home Safety. The Mississippi Windstorm 987
Underwriting Association shall provide a premium discount for any 988
individual who improves his residence with demonstrated mitigation 989
measures that provide protection against damages caused by a 990
windstorm or hurricane. 991
SECTION 19. Section 83-34-17, Mississippi Code of 1972, is 992
brought forward as follows: 993
83-34-17. The rates, rating plans, rating rules, forms and 994
endorsements applicable to the insurance written by the 995
association shall be those approved for use of the association by 996
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the commissioner. Rates shall be nondiscriminatory as to the same 997
class of risk. 998
SECTION 20. Section 83-34-19, Mississippi Code of 1972, is 999
brought forward as follows: 1000
83-34-19. (1) Any assessable insurer or other licensed 1001
insurer, or agent placing insurance through a nonadmitted insurer, 1002
who may be aggrieved by an act, order, ruling or decision of the 1003
association may, within thirty (30) days after such ruling, appeal 1004
to the commissioner. Any hearings held by the commissioner 1005
pursuant to such an appeal shall be in accordance with the 1006
procedure set forth in the insurance laws of Mississippi. The 1007
commissioner is authorized to appoint a member of his staff for 1008
the purpose of hearing such appeals, and a ruling based upon such 1009
hearing shall have the same effect as if heard by the 1010
commissioner. All assessable insurers or other licensed insurers, 1011
or agents placing insurance through a nonadmitted insurer, 1012
aggrieved by any order or decision of the commissioner may appeal 1013
to the Chancery Court of the First Judicial District of Hinds 1014
County, Mississippi, consistent with the insurance laws of the 1015
State of Mississippi. 1016
(2) The association and any assessable insurer, other 1017
licensed insurer or agent placing insurance through a nonadmitted 1018
insurer that may be aggrieved by an act, order, ruling or decision 1019
of the commissioner may, within thirty (30) days after such act, 1020
order, ruling or decision, appeal to the Chancery Court of the 1021
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First Judicial District of Hinds County, Mississippi, consistent 1022
with the insurance laws of the State of Mississippi. 1023
SECTION 21. Section 83-34-21, Mississippi Code of 1972, is 1024
brought forward as follows: 1025
83-34-21. All reports of inspection performed by or on 1026
behalf of the association shall be made available to the 1027
assessable insurers of the association, applicants, agents, 1028
brokers and the commissioner. 1029
SECTION 22. Section 83-34-23, Mississippi Code of 1972, is 1030
brought forward as follows: 1031
83-34-23. There shall be no liability on the part of the 1032
insurance commissioner or any of his staff and representatives for 1033
any action taken under and pursuant to the provisions of this 1034
chapter. There shall be no liability on the part of the 1035
association, its agents, representatives or employees, the members 1036
of the board, or any assessable insurer of the association, except 1037
for the specific obligations stated in any contract of insurance 1038
and the duty to pay assessments as provided in this chapter. 1039
SECTION 23. Section 83-34-25, Mississippi Code of 1972, is 1040
brought forward as follows: 1041
83-34-25. The association shall file in the office of the 1042
commissioner on or before March 1 of each year a statement which 1043
shall summarize the transactions, conditions, operations and 1044
affairs of the association during the preceding fiscal year ending 1045
December 31. Such statement shall contain such matters and 1046
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information as are prescribed by the commissioner and shall be in 1047
such form as required by him. The commissioner may at any time 1048
require the association to furnish to him any additional 1049
information with respect to its transactions or any other matter 1050
which the commissioner deems to be material to assist him in 1051
evaluating the operation and experience of the association. 1052
SECTION 24. Section 83-34-27, Mississippi Code of 1972, is 1053
brought forward as follows: 1054
83-34-27. The commissioner may from time to time make an 1055
examination into the affairs of the association when he deems 1056
prudent and, in undertaking such examination, may hold a public 1057
hearing. The expenses of such examination shall be borne and paid 1058
by the association. The association and the commissioner may from 1059
time to time make an examination of the data and payments of 1060
assessable insurers or other licensed insurers or agents placing 1061
insurance through nonadmitted insurers as it deems prudent. The 1062
expenses of such examination shall be borne and paid by the 1063
examined party or entity. Any person noticed for such examination 1064
may appeal the examination or the cost thereof, or both, to the 1065
commissioner. 1066
SECTION 25. Section 83-34-29, Mississippi Code of 1972, is 1067
brought forward as follows: 1068
83-34-29. The association is authorized to promulgate rules 1069
for the implementation of this chapter, subject to the approval of 1070
the commissioner. 1071
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SECTION 26. Section 83-34-31, Mississippi Code of 1972, is 1072
brought forward as follows: 1073
83-34-31. (1) The board of directors, subject to the 1074
approval of the commissioner, shall have the power and authority 1075
to issue bonds, and the power and authority to enter into loans, 1076
letters of credit, lines of credit, and other forms of 1077
indebtedness, as needed for operations, the purchase of 1078
reinsurance, claim losses, and incurred but not reported claims. 1079
(2) The bonds must be in a form approved by the 1080
commissioner. With approval of the commissioner, the association 1081
may issue bonds or incur other indebtedness to retire or 1082
consolidate bonds as appropriate. Bonds and other debt 1083
obligations issued by or on behalf of the association are not to 1084
be considered "state bonds" and shall not be an obligation of the 1085
state. 1086
(3) The state hereby covenants with holders of bonds issued 1087
pursuant to this chapter that the state will not limit, alter or 1088
deny the duties and obligations of this chapter, and of the 1089
association and the commissioner as established by this chapter, 1090
necessary to fulfill the terms of any agreements with bondholders, 1091
or in any way impair the rights and remedies of such bondholders 1092
as long as any such bonds remain outstanding unless adequate 1093
provision has been made for the payment of such bonds pursuant to 1094
the documents authorizing the issuance of such bonds. 1095
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SECTION 27. Section 83-34-33, Mississippi Code of 1972, is 1096
brought forward as follows: 1097
83-34-33. (1) When the association knows or has reason to 1098
believe that (a) it has or will incur losses from a covered event 1099
that exceeds available surplus, reinsurance, recoupable or 1100
nonrecoupable assessments and other reasonably available assets of 1101
the association, such that one or more bond issues or other 1102
financing, or both, will be necessary to pay claims losses and 1103
other related expenses, or (b) the association has an excess 1104
deficit that cannot be reasonably resolved by income available to 1105
the association above the minimum reserve, then the association 1106
shall immediately give notice to the commissioner and request that 1107
the commissioner implement an excess deficit surcharge on all 1108
property and casualty insurance premiums for insurance for 1109
property and operations in this state designed to recover to the 1110
association the amount of all such bonds and other indebtedness 1111
resulting from the covered event, or other deficit. 1112
(2) All such bonds and loans are secured by the power and 1113
duty of the commissioner to implement surcharges against all 1114
property and casualty insurance premiums for insurance for 1115
property and activities in this state sufficient to repay the 1116
bonds or loans, or both. 1117
(3) If any of the bonds remain unsold sixty (60) days after 1118
issuance, the commissioner shall require all assessable insurers 1119
to purchase the bonds, which purchased bonds shall be treated as 1120
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admitted assets; each assessable insurer shall be required to 1121
purchase that percentage of the unsold portion of the bond issue 1122
that equals the assessable insurer's current percentage of 1123
participation. An assessable insurer shall not be required to 1124
purchase the bonds to the extent that the commissioner determines 1125
that the purchase would endanger or impair the solvency of the 1126
insurer. The bonds must be in a form approved by the 1127
commissioner. With approval of the commissioner, the association 1128
may issue bonds or incur other indebtedness to retire or 1129
consolidate bonds as appropriate. Bonds and other debt 1130
obligations issued by or on behalf of the association are not to 1131
be considered "state bonds" and shall not be an obligation of the 1132
state. 1133
(4) At such time as the commissioner can reasonably estimate 1134
the amount of bonds or indebtedness, or both, necessitated by a 1135
covered event, and in no event more than ninety (90) days from the 1136
notice given by the association, the commissioner shall have the 1137
duty and the power to implement an excess deficit surcharge on all 1138
property and casualty insurance premiums for insurance for 1139
property and activities in this state. "Premiums" includes 1140
premiums for policies issued by or for the association and by or 1141
for the Mississippi Residential Property Insurance Underwriting 1142
Association. "Premiums" shall not include premiums for workers' 1143
compensation coverage, premiums for medical malpractice liability 1144
coverage including medical malpractice liability coverage issued 1145
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by companies created under Section 83-47-1 et seq., nor any 1146
premiums for coverage by insurance pools or plans administered by 1147
or through the State of Mississippi. 1148
(5) If the excess deficit surcharge is designed to repay 1149
bonds, it shall be designated as such and all funds recovered from 1150
the excess deficit surcharge shall be used for repayment of the 1151
bonds for which it was implemented, until such time as the bonds 1152
have been paid or redeemed. 1153
(6) If the excess deficit surcharge is designed to repay a 1154
specific indebtedness incurred for losses from a specific covered 1155
event, it shall be designated as such and all funds recovered from 1156
the excess deficit surcharge shall be used for repayment of the 1157
indebtedness for which it was implemented, until such time as the 1158
indebtedness has been paid or redeemed. 1159
(7) Such excess deficit surcharge shall be specifically 1160
identified on either the premium statements or the policy 1161
declarations pages or other appropriate policy forms as relating 1162
to the specific covered event losses or bonds or indebtedness for 1163
which it was implemented. The commissioner shall name each such 1164
excess deficit surcharge so that it can be uniformly identified by 1165
insurers and agents. 1166
(8) The excess deficit surcharge shall be a percentage of 1167
the total policy premium but the excess deficit surcharge shall 1168
not be considered premium and is not subject to premium taxes or 1169
commissions. However, failure to pay the excess deficit surcharge 1170
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shall be treated the same as failure to pay premium. "Total 1171
policy premium" includes taxes and commissions. 1172
(9) The commissioner shall implement an appropriate excess 1173
deficit surcharge percentage sufficient to recover the amount 1174
necessary for repayment of bonds and indebtedness necessitated by 1175
a covered event, or the resolution of other deficit, as 1176
applicable. If at any time such surcharge shall be insufficient, 1177
the commissioner shall increase the excess deficit surcharge as 1178
necessary and appropriate. The commissioner shall cease excess 1179
deficit surcharges as he determines appropriate funds have been 1180
collected. However, the commissioner shall endeavor to apply 1181
excess deficit surcharges on a one-year basis in order to promote 1182
consistency, nondiscrimination and fairness among policyholders 1183
purchasing or renewing insurance during that year. Any 1184
collections in excess of the amounts needed shall be assets of the 1185
association for investment and other uses. 1186
(10) Each licensed insurer issuing insurance for property 1187
and casualty risks in the state and each agent placing insurance 1188
through nonadmitted insurers, shall collect the excess deficit 1189
surcharges established by the commissioner under the authority of 1190
this section. Funds collected by such licensed insurers and 1191
agents placing insurance through nonadmitted insurers as excess 1192
deficit surcharges authorized by this section shall be collected 1193
and held in trust and shall be fully remitted to the association 1194
on a quarterly basis with forms providing appropriate information 1195
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as designed by the association. Insurers and agents shall remit 1196
such funds to the association within twenty (20) days after the 1197
end of each quarter. At such time the insurers and agents shall 1198
further remit to the association all interest earned on the excess 1199
deficit surcharge funds. 1200
(11) The association and the commissioner are both 1201
specifically given the power to audit licensed insurers and agents 1202
placing insurance through nonadmitted insurers to confirm the 1203
accuracy of remittances of excess deficit surcharges at the 1204
expense of the licensed insurers and agents. 1205
(12) The commissioner has the duty and power to adjust the 1206
percentage of any excess deficit surcharge previously established 1207
as he finds appropriate taking into consideration any relevant 1208
factors, including, but not limited to, consolidation or 1209
replacement of bonds, any additional indebtedness resulting from a 1210
covered event, the rate of recovery, anticipated length of total 1211
recovery, and impact of other covered events; however, the 1212
commissioner shall not reduce the amount of excess deficit 1213
surcharges implemented and designated to pay or redeem bonds, or 1214
other indebtedness below the amount necessary to timely pay or 1215
redeem such bonds, or other indebtedness. 1216
(13) When the association knows or has reason to believe 1217
that excess deficit surcharges authorized by this section 1218
previously established by the commissioner will be insufficient to 1219
timely pay or redeem bonds or indebtedness, the association shall 1220
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immediately give notice to the commissioner. The commissioner 1221
shall alter such excess deficit surcharge as necessary to timely 1222
pay or redeem bonds or pay other indebtedness. 1223
(14) The association shall report quarterly to the 1224
commissioner providing all financial information for each excess 1225
deficit surcharge authorized by this section, including: 1226
(a) The original and current outstanding indebtedness 1227
of all bonds and loans; 1228
(b) Total excess deficit surcharge funds recovered to 1229
date; and 1230
(c) Any information requested by the commissioner. 1231
(15) The commissioner may request, and the association shall 1232
provide, on an immediate basis to the commissioner any financial 1233
information or other information concerning any excess deficit 1234
surcharge. This section shall not limit the reporting 1235
requirements provided by Section 83-34-25. 1236
SECTION 28. Section 83-34-35, Mississippi Code of 1972, is 1237
brought forward as follows: 1238
83-34-35. In order to avoid or lessen the possibility and 1239
amount of excess deficit surcharges authorized by this chapter, 1240
the commissioner shall approve rates for policies issued by the 1241
association at least adequate to fund annual reinsurance above a 1242
self-insured retention of One Hundred Million Dollars 1243
($100,000,000.00) that, combined with any readily available 1244
reserves of the association, is sufficient to cover at least the 1245
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probable maximum losses from a storm expected to occur once every 1246
one hundred (100) years as predicted by a model or method approved 1247
by the commissioner for the properties insured by the association 1248
at the time the reinsurance was negotiated. The amount of 1249
reinsurance in the foregoing rate adequacy requirement shall 1250
increase every two (2) years by increasing the probable maximum 1251
loss by five (5) years, until such time as the probable maximum 1252
loss insured is for a storm expected to occur every one hundred 1253
fifty (150) years. The commissioner may approve rates in excess 1254
of the minimums required by this section as consistent with his 1255
duties and the insurance laws of the State of Mississippi. Any 1256
self-insured retention related to the purchase of reinsurance 1257
shall be subject to the prior approval of the commissioner. 1258
SECTION 29. Section 83-34-37, Mississippi Code of 1972, is 1259
brought forward as follows: 1260
83-34-37. (1) (a) There is created in the State Treasury a 1261
special fund to be designated as the "Mississippi Windstorm 1262
Underwriting Association Reinsurance Assistance Fund." The fund 1263
shall consist of monies deposited therein as provided under 1264
Section 83-34-39, monies appropriated by act of the Legislature 1265
and monies from any other source designated for deposit into such 1266
fund. Unexpended amounts remaining in the fund at the end of a 1267
fiscal year shall not lapse into the State General Fund, and any 1268
interest earned or investment earnings on amounts in the fund 1269
shall be deposited to the credit of the fund; however, any monies 1270
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in excess of Fifty Million Dollars ($50,000,000.00) remaining in 1271
the fund at the end of a fiscal year that have not been 1272
appropriated shall lapse into the State General Fund. 1273
(b) Monies in the special fund may be used by the 1274
Department of Insurance, upon appropriation by the Legislature, 1275
only for the purpose of assisting the Mississippi Windstorm 1276
Underwriting Association in defraying expenses and costs for 1277
reinsurance under Section 83-34-1 et seq. The association may use 1278
any such funds received from the Department of Insurance for the 1279
sole purpose of defraying expenses and costs for reinsurance. 1280
Monies in the fund used for the purposes described in this 1281
paragraph (b) shall be in addition to other funds available from 1282
any other source for such purposes. 1283
(c) Monies in the special fund may not be used, 1284
expended or transferred for any other purpose except upon 1285
amendment to this section by a bill enacted by the Legislature 1286
with a vote of not less than two-thirds (2/3) of the members of 1287
each house present and voting. 1288
(2) (a) The Commissioner of Insurance shall file a report 1289
with the Joint Legislative Budget Committee not later than 1290
September 1 of each year, recommending the amount of assistance, 1291
if any, needed by the Mississippi Windstorm Underwriting 1292
Association for reinsurance expenses and costs. The Commissioner 1293
of Insurance also shall provide a copy of the report to the 1294
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ST: Fire safety; establish Fire Grant Fund to
assist counties and municipalities in improving
fire safety.
Attorney General and the Executive Director of the Mississippi 1295
Development Authority. 1296
(b) The Mississippi Windstorm Underwriting Association 1297
shall prepare and file detailed reports with the Clerk of the 1298
House of Representatives, Secretary of the Senate, Commissioner of 1299
Insurance, Attorney General and Executive Director of the 1300
Mississippi Development Authority regarding the receipt and 1301
expenditure of monies by the association under this section. 1302
SECTION 30. This act shall take effect and be in force from 1303
and after July 1, 2026. 1304