Make Mississippi Resilient and Strong Act; create for strengthening properties against severe weather.

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To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Ford (54th), Felsher

COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1714

AN ACT TO CREATE THE "MAKE MISSISSIPPI RESILIENT AND STRONG 1
ACT"; TO ESTABLISH THE MISSISSIPPI WINDSTORM MITIGATION 2
ASSOCIATION TO PROVIDE SERVICES TO PROMOTE WELFARE AND ECONOMIC 3
DEVELOPMENT THROUGH THE STRENGTHENING OF RESIDENTIAL HOMES AND 4
COMMERCIAL PROPERTIES TO PROTECT AGAINST SEVERE WEATHER; TO 5
PROVIDE FOR GRANTS TO ASSIST IN STRENGTHENING OF RESIDENTIAL HOMES 6
AND COMMERCIAL PROPERTIES; TO PROVIDE FOR MEMBERSHIP OF THE 7
ASSOCIATION; TO PROVIDE FOR A BOARD OF DIRECTORS; TO PROVIDE THE 8
POWERS OF THE ASSOCIATION; TO PROVIDE FOR THE FUNDING OF THE 9
ASSOCIATION; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE 10
DESIGNATED THE MISSISSIPPI WINDSTORM MITIGATION ASSOCIATION FUND 11
FOR THE PURPOSE OF PROVIDING FUNDS TO CARRY OUT THE PROVISIONS OF 12
THIS ACT; TO PROVIDE THAT MEMBER INSURERS SHALL BE IMMUNE FROM 13
ACTS OR OMISSIONS IN THE PERFORMANCE OF THEIR DUTIES; TO AMEND 14
SECTION 83-5-73, MISSISSIPPI CODE OF 1972, TO REQUIRE ALL MEMBER 15
INSURERS TO PAY A SUPPLEMENTAL FEE TO FUND THE ASSOCIATION; TO 16
AMEND SECTION 83-34-5, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE 17
MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION TO CONTRACT WITH A 18
THIRD PARTY FOR THE DETERMINATION OF GRANT AWARDS; TO BRING 19
FORWARD SECTIONS 83-34-1 THROUGH 83-34-4 AND 83-34-7 THROUGH 20
83-34-37, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE 21
MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION, FOR PURPOSES OF 22
POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 83-1-191, MISSISSIPPI 23
CODE OF 1972, WHICH CREATES THE COMPREHENSIVE HURRICANE DAMAGE 24
MITIGATION PROGRAM, FOR PURPOSES OF AMENDMENT; TO BRING FORWARD 25
SECTION 83-1-201, MISSISSIPPI CODE OF 1972, WHICH CREATES THE 26
MISSISSIPPI WINDSTORM MITIGATION FUND, FOR PURPOSES OF POSSIBLE 27
AMENDMENT; TO BRING FORWARD SECTIONS 27-15-103 AND 27-15-109, 28
MISSISSIPPI CODE OF 1972, WHICH REQUIRE THE ASSESSMENT OF A 29
PREMIUM TAX ON FOREIGN AND DOMESTIC INSURANCE COMPANIES, FOR 30
PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 31
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 32
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SECTION 1. Sections 1 through 14 of this act shall be 33
known and may be cited as the "Make Mississippi Resilient and 34
Strong Act." 35
SECTION 2. (1) The purpose of Sections 1 through 14 of 36
this act is to promote the state's welfare and economic 37
development through the strengthening of residential homes and 38
commercial properties to protect against severe weather and to 39
establish a mechanism to allow the availability of a grant 40
program to encourage single-family, site-built, owner-occupied, 41
residential property owners or commercial property owners to 42
retrofit their properties to make them less vulnerable to 43
hurricane, tornado or other catastrophic windstorm events. 44
(2) To provide this resiliency and economic protection, 45
an association of member insurers is created to make, subject 46
to certain limitations, financial grants to retrofit insurable 47
property to standards adopted by the association. 48
SECTION 3. (1) Any person who owns insurable property 49
located in this state may apply to the association for a grant 50
to retrofit such insurable property. 51
(2) To obtain grant funds, insurable property shall be 52
retrofitted to one of the tiered mitigation levels as defined 53
by the Insurance Institute for Business and Home Safety, or 54
other mitigation program, or construction technique, that is 55
recommended by the Mississippi Windstorm Mitigation 56
Coordinating Council and approved by the association and the 57
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commissioner. An insurable property shall be certified as 58
conforming to the most recent version of the "fortified roof" 59
standard of the Insurance Institute for Business and Home 60
Safety only after evaluation and certification by an Insurance 61
Institute for Business and Home Safety certified evaluator. 62
(3) Total grants awarded for any insurable property shall 63
not exceed Fifteen Thousand Dollars ($15,000.00). 64
SECTION 4. As used in Sections 1 through 14 of this act, 65
the following terms have the meanings provided in this section, 66
unless the context clearly requires otherwise: 67
(a) "Applicant" means any person who submits an 68
application for a grant award from the association. 69
(b) "Association" means the Mississippi Windstorm 70
Mitigation Association. 71
(c) "Board" means the board of directors of the 72
association. 73
(d) "Commissioner" means the Commissioner of Insurance of 74
this state. 75
(e) "Insurable property" includes single-family 76
residential and commercial property. "Insurance property" also 77
includes modular homes satisfying the codes, standards or techniques 78
as provided in Section 83-75-1 or 83-75-3. Manufactured homes are 79
excluded from "insurable property," except as expressly provided in 80
Section 83-75-3(3). 81
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(f) "Insurance Institute for Business and Home Safety" 82
means the non-profit scientific research and communications 83
organization supported by property insurers, reinsurers and 84
affiliated companies. 85
(g) "Member insurer" means any entity that is authorized 86
in this state to write property insurance coverage or provides 87
property insurance coverage in this state. Such term shall not 88
include nonadmitted insurers eligible for writing business in this 89
state or writing business in this state. 90
(h) "Person" means a natural person, trust, partnership, 91
corporation, limited liability company or any other business entity. 92
(i) "Premiums" mean amounts or considerations (by 93
whatever name called) received on property insurance policies less 94
returned premiums thereon and dividends paid or credited to 95
policyholders on such business. 96
(j) "Property insurance" means the following lines of 97
coverage as reported on the National Association of Insurance 98
Commissioners Annual Statement blank for fire, allied lines, 99
homeowners, commercial multiple peril (non-liability portion) and 100
earthquake insurance. 101
(k) "Retrofit" means to make changes to an existing 102
building to resist loss due to hurricane, tornado or other 103
catastrophic windstorm events. 104
SECTION 5. (1) There is created a nonprofit legal entity to 105
be known as the Mississippi Windstorm Mitigation Association. All 106
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member insurers shall be and remain members of the association, as a 107
condition of their authority to transact insurance business in this 108
state. The association shall perform its functions under a plan of 109
operation established and approved under Section 9 of this act and 110
shall exercise its powers through a board of directors established 111
under Section 6 of this act. 112
(2) The association shall be subject to the applicable 113
provisions of the insurance laws of this state. Meetings or records 114
of the association may be opened to the public upon majority vote of 115
the board of directors of the association. 116
SECTION 6. (1) The board of directors of the association 117
shall consist of the following members: 118
(a) Two (2) members appointed by the Commissioner of 119
Insurance, with each being appointed from different regions of the 120
state; 121
(b) Three (3) members appointed by the Governor, with 122
one (1) being appointed from each of the state Supreme Court 123
districts as those districts existed on July 1, 2026; 124
(c) Three (3) members appointed by the Lieutenant 125
Governor, with one (1) being appointed from each of the state 126
Supreme Court districts as those districts existed on July 1, 127
2026; and 128
(d) Three (3) members appointed by the Speaker of the 129
House of Representatives, with one (1) being appointed from each 130
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of the state Supreme Court districts as those districts existed on 131
July 1, 2026. 132
In making appointments to the board, each appointing 133
authority shall select persons who possess expertise in different 134
professions or occupations; however, all appointees must possess 135
expertise in the field of either insurance, construction or 136
finance. 137
(2) Members of the board shall serve staggered terms of 138
three (3) years, with the initial terms as follows: 139
(a) Of the appointees selected by the commissioner, one 140
(1) shall serve a term of one (1) year and one (1) shall serve a 141
term of three (3) years, to be determined by the commissioner when 142
making the appointments; 143
(b) Of the appointees selected by the Governor, one (1) 144
shall serve a term of one (1) year, one (1) shall serve a term of 145
two (2) years, and one (1) shall serve a term of three (3) years, 146
to be determined by the Governor when making the appointments; 147
(c) Of the appointees selected by the Lieutenant 148
Governor, one (1) shall serve a term of one (1) year, one (1) 149
shall serve a term of two (2) years, and one (1) shall serve a 150
term of three (3) years, to be determined by the Lieutenant 151
Governor when making the appointments; and 152
(d) Of the appointees selected by the Speaker of the 153
House of Representatives, one (1) shall serve a term of one (1) 154
year, one (1) shall serve a term of two (2) years, and one (1) 155
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shall serve a term of three (3) years, to be determined by the 156
Speaker when making the appointments. 157
Upon the expiration of the initial terms of office, all 158
subsequent appointments shall be made for a term of three (3) 159
years. 160
(3) Initial appointments to the board must be made before 161
August 1, 2026. No later than thirty (30) days after the initial 162
appointments are made, the Governor shall give notice to all 163
members of the board of the time and place of an organizational 164
meeting of the board. 165
(4) Vacancies on the board shall be filled for the remaining 166
period of a term by the appointing authority of the member who is 167
vacating the board. 168
(5) For attending meetings of the board of directors, 169
members shall be reimbursed from the assets of the association for 170
actual and necessary expenses incurred, as authorized under 171
Section 25-3-41; however, members of the board may not be paid any 172
additional compensation for their service as board members. 173
SECTION 7. (1) In addition to the rights and powers 174
elsewhere in Sections 1 through 14 of this act, the association 175
may: 176
(a) Enter into such contracts as are necessary or 177
proper to carry out the provisions and purposes of this act 178
including contractual agreements with third parties, including the 179
Mississippi Windstorm Underwriting Association and the Mississippi 180
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Windstorm Mitigation Coordinating Council, for the purposes of 181
developing and implementing windstorm mitigation programs; 182
(b) Sue or be sued, including taking any legal actions 183
necessary or proper to recover or collect monies due the 184
association under Section 8 of this act and to settle claims or 185
potential claims against it; 186
(c) Borrow money to affect the purposes of this act; 187
any notes or other evidence of indebtedness of the association not 188
in default shall be legal investments for domestic insurers and 189
may be carried as admitted assets; 190
(d) Employ or retain such persons as are necessary or 191
appropriate to handle the financial transactions of the 192
association, and to perform such other functions as become 193
necessary or proper under Sections 1 through 14 of this act; 194
(e) Take such legal action as may be necessary or 195
appropriate to: 196
(i) Avoid the payment of improper grants or any 197
other expenditures by the association; 198
(ii) Recover any amounts erroneously or improperly 199
paid by the association; 200
(iii) Recover any amounts paid by the association 201
as a result of mistake of fact or law; 202
(iv) Recover other amounts due the association. 203
(f) Organize itself as a corporation or in other legal 204
form permitted by the laws of the state; 205
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(g) Request information from a person seeking a grant 206
from the association in order to aid the association in 207
determining its obligations under this act with respect to the 208
person, and the person shall promptly comply with the request; and 209
(h) Take other necessary or appropriate action to 210
discharge its duties and obligations under this act or to exercise 211
its powers under Sections 1 through 14 of this act. 212
(2) The association may join an organization of one or more 213
other state associations of similar purposes, to further the 214
purposes and administer the powers and duties of the association. 215
(3) The board of directors of the association shall have 216
discretion and may exercise a reasonable business judgment to 217
determine the means by which the association is to provide the 218
benefits of this act in an economical and efficient manner. 219
(4) The board of directors of the association may contract 220
with a third-party person or entity to make determinations on grant 221
awards, which third-party person or entity must be granted full 222
discretion in determining the amount of awards. 223
(5) Venue in a suit against the association arising under the 224
act shall be in Hinds County, Mississippi. The association shall 225
not be required to give an appeal bond in an appeal that relates to 226
a cause of action arising under this act. 227
SECTION 8. For the purpose of providing the funds necessary 228
to carry out the powers and duties of the Mississippi Windstorm 229
Mitigation Association, in addition to those fees required under 230
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Section 83-5-73, all member insurers shall pay a supplemental fee 231
to the commissioner in the amount of Twenty-five Dollars ($25.00) 232
for the filing and processing of an agent's certificate of 233
authority for deposit into the Mississippi Windstorm Mitigation 234
Association Fund created under Section 10 of this act. 235
SECTION 9. (1) (a) The association shall submit to the 236
commissioner a plan of operation and any amendments thereto 237
necessary or suitable to assure the fair, reasonable and equitable 238
administration of the association. The plan of operation and any 239
amendments thereto shall become effective upon the commissioner's 240
written approval or unless it has not been disapproved within thirty 241
(30) days. 242
(b) If the association fails to submit a suitable plan of 243
operation within one hundred eighty (180) days following the 244
effective date of this act, or if at any time thereafter the 245
association fails to submit suitable amendments to the plan, the 246
commissioner shall, after notice and hearing, adopt and promulgate 247
such reasonable rules as are necessary or advisable to effectuate 248
the provisions of this act. Such rules shall continue in force 249
until modified by the commissioner or superseded by a plan submitted 250
by the association and approved by the commissioner. 251
(2) All member insurers shall comply with the plan of 252
operation. 253
(3) The plan of operation shall, in addition to requirements 254
enumerated elsewhere in this act: 255
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(a) Establish the procedures whereby all the power and 256
duties of the association under this act will be performed; 257
(b) Establish procedures for handling the assets of the 258
association; 259
(c) Establish the amount and method of reimbursing 260
members of the board of directors under Section 6 of this act; 261
(d) Establish the procedures by which grant applications 262
may be filed with the association and establish acceptable forms of 263
proof of eligibility to receive grant funds; 264
(e) Establish or adopt mitigation standards required to 265
be achieved and certifications required to be obtained in order to 266
receive grant funds; 267
(f) Establish regular places and times for meetings, 268
including telephone conference calls of the board of directors; 269
(g) Establish procedures for records to be kept of all 270
financial transactions of the association, its agents and the board 271
of directors; 272
(h) Contain additional provisions necessary or proper for 273
the execution of the powers and duties of the association; 274
(i) Establish procedures whereby a director may be 275
removed for cause, including in the case where a member insurer 276
director becomes an impaired or insolvent insurer; and 277
(j) Require the board of directors to establish a policy 278
and procedures for addressing conflicts of interests. 279
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SECTION 10. There is created in the State Treasury a special 280
fund to be designated as the "Mississippi Windstorm Mitigation 281
Association Fund" to be administered by the Department of Finance 282
and Administration. The special fund shall consist of monies 283
collected and paid to the credit of the fund by the commissioner 284
under Section 8 of this act and monies from any other source 285
designated for deposit into the fund. Monies in the fund shall be 286
allocated for the purpose of providing the funds necessary for the 287
Mississippi Windstorm Mitigation Association to carry out the 288
provisions of Sections 1 through 14 of this act. Unexpended amounts 289
remaining in the fund at the end of a fiscal year shall not lapse 290
into the State General Fund, and any interest earned or investment 291
earnings on amounts in the fund shall be deposited to the credit of 292
the fund. 293
SECTION 11. The association shall be subject to 294
examination and regulation by the commissioner. The board of 295
directors shall submit to the commissioner and the Joint 296
Legislative Committee on Performance Evaluation and Expenditure 297
Review (PEER), each year not later than one hundred fifty (150) 298
days after the association's fiscal year, a financial report in 299
a form approved by the commissioner and a report of its 300
activities during the preceding fiscal year. Upon the request 301
of a member insurer, the association shall provide the member 302
insurer with a copy of the report. 303
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SECTION 12. The association shall be exempt from payment 304
of all fees and all taxes levied by this state or any of its 305
subdivisions, except taxes levied on real property. 306
SECTION 13. There shall be no liability on the part of and 307
no cause of action of any nature shall arise against any member 308
insurer or its agents or employees, the association or its agents 309
or employees, members of the board of directors, or the 310
commissioner or his representatives, for any action or omission by 311
them in the performance of their powers and duties under Sections 312
1 through 14 of this act. This indemnity shall extend to the 313
participation in any organization of one or more other state 314
associations of similar purposes and to any such organization and 315
its agents or employees. 316
SECTION 14. The Commissioner of Insurance may promulgate 317
rules and regulations as necessary to effectuate the provisions of 318
Sections 1 through 14 of this act. 319
SECTION 15. Section 83-5-73, Mississippi Code of 1972, is 320
amended as follows: 321
83-5-73. The commissioner shall collect and pay into the 322
special fund in the State Treasury designated as the "Insurance 323
Department Fund" the following fees: for certificate of authority 324
to each general or district agent or manager, Twenty-five Dollars 325
($25.00); for filing and processing an agent's certificate of 326
authority, Twenty-five Dollars ($25.00); for filing and examining 327
statement preliminary to admission, One Thousand Dollars 328
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($1,000.00); for filing and processing a Form A application, Two 329
Thousand Dollars ($2,000.00); for filing and auditing annual 330
statement, Five Hundred Dollars ($500.00); for filing any other 331
paper required by law, Fifty Dollars ($50.00); for continuing 332
education courses or programs filed by the providers for approval, 333
Fifty Dollars ($50.00); for each certification company licensed 334
status, Forty Dollars ($40.00); for each seal when required, 335
Twenty Dollars ($20.00); for service of process on the 336
commissioner as attorney, Twenty-five Dollars ($25.00). 337
From and after July 1, 2016, the expenses of this agency 338
shall be defrayed by appropriation from the State General Fund and 339
all user charges and fees authorized under this section shall be 340
deposited into the State General Fund as authorized by law. 341
From and after July 1, 2016, no state agency shall charge 342
another state agency a fee, assessment, rent or other charge for 343
services or resources received by authority of this section. 344
In addition to the user charges and fees required under this 345
section, all member insurers, as defined in Section 4 of this act, 346
shall pay to the commissioner the supplemental fee required under 347
Section 8 of this act. 348
SECTION 16. Section 83-34-5, Mississippi Code of 1972, is 349
amended as follows: 350
83-34-5. The association shall, pursuant to the provisions 351
of this chapter and the plan of operation, and with respect to 352
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essential property insurance on insurable property, have the 353
power: 354
(a) To issue policies of essential property insurance 355
on insurable property to applicants; 356
(b) At its option, and with consent of the 357
commissioner, to issue policies of related essential property 358
insurance on insurable property to applicants; 359
(c) To purchase reinsurance for all or part of the 360
risks of the association; 361
(d) To levy and collect recoupable and nonrecoupable 362
assessments from assessable insurers; 363
(e) To issue bonds or incur other forms of 364
indebtedness, including, but not limited to, loans, lines of 365
credit or letters of credit; 366
(f) To establish underwriting criteria consistent with 367
the provisions of this chapter and as approved by the 368
commissioner; 369
(g) To invest and reinvest income and assets subject to 370
the oversight of the commissioner; 371
(h) To enter into contractual agreements with third 372
parties, including the Mississippi Windstorm Mitigation 373
Coordinating Council and the Mississippi Windstorm Mitigation 374
Association, for the purposes of developing and implementing 375
windstorm mitigation programs; * * * 376
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(i) To contract with a third-party person or entity to 377
make determinations on grant awards, which third-party or entity 378
must be granted full discretion in determining the amount of 379
awards; and 380
( * * *j) To exercise all other powers necessary to 381
carry out the provisions and intent of this chapter. 382
SECTION 17. Section 83-34-1, Mississippi Code of 1972, is 383
brought forward as follows: 384
83-34-1. In this chapter, unless the context otherwise 385
requires: 386
(a) "Essential property insurance" means insurance 387
against direct loss to property from the risk of windstorm and 388
hail in the manner as defined and limited in the standard real 389
property and contents insurance forms approved by the 390
commissioner. Essential property insurance may include coverage 391
for either the actual cash value or replacement cost value of the 392
structure and contents. Essential property insurance includes 393
builders risks coverage. The extent of risk covered, the insuring 394
language and the exclusions are all subject to approval by the 395
commissioner. Policies, rules and rates shall be filed with the 396
commissioner in the manner provided for insurance companies. 397
(b) "Association" means the Mississippi Windstorm 398
Underwriting Association established pursuant to the provisions of 399
this chapter. 400
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(c) "Plan of operation" means the plan of operation of 401
the association approved or promulgated by the commissioner 402
pursuant to the provisions of this chapter. 403
(d) "Insurable property" means real property, and 404
contents therein when requested, at fixed locations in the coast 405
area, which property is determined by the association to be in an 406
insurable condition and otherwise meets the underwriting 407
requirements of the association. Any one- or two-family dwelling 408
built, rebuilt, altered or remodeled in compliance with the 409
applicable building codes, including design-wind requirements, 410
that is not otherwise rendered uninsurable by reason of use, 411
occupancy or state of repair, shall be an insurable risk. 412
Neighborhood area, location and environmental hazards beyond the 413
control of the applicant or owner of the property shall not be 414
considered in determining insurable condition. "Insurable 415
property" shall not include insurance on motor vehicles or 416
creditor placed insurance on mobile homes. "Insurable property" 417
includes mobile homes, modular homes or manufactured housing that 418
are installed in compliance with applicable codes. 419
(e) "Commissioner" means the Insurance Commissioner of 420
the State of Mississippi. 421
(f) "Coast area" means Hancock, Harrison, Jackson, 422
Pearl River, Stone and George Counties. 423
(g) (i) "Net direct premiums," for purposes of 424
calculating percentages of participation for assessable insurers 425
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for the year 2007, means gross direct premiums, excluding 426
reinsurance assumed and ceded, written on property in this state 427
for the risk of windstorm and hail less return premiums upon 428
cancelled contracts, dividends paid or credited to policyholders, 429
or the unused or unabsorbed portion of premium deposits. "Net 430
direct premiums" includes the premium charge component for the 431
risk of windstorm and hail to property in all policies, including 432
multiperil and other policies that package or combine coverage for 433
other risks. The plan of operation shall prescribe the portion of 434
premium allocated for the risk of windstorm and hail in multiperil 435
and other policies that package or combine coverage for other 436
risks. "Net direct premiums" shall not include farm property. 437
"Net direct premiums" shall not include the property components of 438
motor vehicles and other mobile property, but includes premiums 439
for the risks of windstorm and hail for mobile homes, modular 440
homes or manufactured housing. 441
(ii) "Net direct premiums," for purposes of 442
calculating percentages of participation for assessable insurers 443
after the year 2007, means those premiums reported by the 444
assessable insurers in their annual statements to the Department 445
of Insurance that were charged for insurance for any and all risks 446
on real property and contents in the state. The department shall 447
determine which lines of real property and contents insurance 448
shall be included in the calculation of net direct premiums. The 449
included real property and contents insurance lines may be changed 450
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from time to time in the discretion of the commissioner. "Net 451
direct premiums" shall not include premiums for insuring farm 452
property that are reported timely to the association as provided 453
in the plan of operation. 454
(iii) The commissioner is authorized and directed 455
to provide to the association annual statements, other reports and 456
any statistics necessary to provide the information herein 457
required and which the commissioner is hereby authorized and 458
empowered to obtain from any assessable insurer. 459
(h) "Farm property" means property used for farming 460
purposes; however, it shall not include any property used for 461
dwelling purposes or any outbuildings used in connection 462
therewith. 463
(i) "Losses" includes expenses for the adjustment and 464
resolution of claims and operational and other general expenses. 465
(j) "Bonds, loans, lines of credit and indebtedness" 466
include interest, finance charges, and any and all other costs 467
associated with the financing. 468
(k) "Percentage of participation" for an assessable 469
insurer means the percentage determined by dividing the assessable 470
insurers net direct premiums written in this state in the previous 471
year by the aggregate net direct premiums written in this state by 472
all assessable insurers of the association in the previous year. 473
The percentage of participation may be modified as provided in 474
Sections 83-34-9(3) and 83-34-13(2). 475
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(l) "Nonadmitted insurers" means those insurance 476
companies defined in Section 83-21-17, and any other companies and 477
persons selling insurance on risks in Mississippi that are not 478
licensed to do business in the State of Mississippi. 479
(m) "Agents placing insurance through nonadmitted 480
insurers" means those agents defined in Section 83-21-19 and any 481
other agents placing insurance through a nonadmitted insurer. 482
(n) "Assessable insurer" means each and every insurer 483
authorized to write, and engaged in writing, property insurance 484
within this state on a direct basis. 485
(o) "Minimum reserve" means an amount set forth in the 486
plan of operation which is maintained by the association for the 487
payment of salaries and other expenses necessary for the 488
continuous and ongoing operation of the association. 489
(p) "Recoupable assessment" means any assessment, in 490
whole or in part, that is levied on and payable by assessable 491
insurers to the association which is directly recoverable from 492
policyholders for any covered event. Any assessment levied due to 493
a covered event occurring during the calendar year 2019 shall be a 494
recoupable assessment. 495
(q) "Nonrecoupable assessment" means any assessment 496
levied on and payable by assessable insurers to the association 497
which is not directly recoverable from policyholders. 498
(r) "Excess deficit" means a deficit that exceeds 499
available surplus, reinsurance, recoupable and nonrecoupable 500
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assessments and other reasonably available assets of the 501
association. The minimum reserve, as set forth in the plan of 502
operation, shall not be considered reasonably available assets of 503
the association when determining whether an excess deficit has 504
occurred. 505
(s) "Covered event" means an event, such as a 506
hurricane, other windstorm or hailstorm, which causes losses 507
covered by the policies issued by the association to its 508
policyholders. 509
SECTION 18. Section 83-34-3, Mississippi Code of 1972, is 510
brought forward as follows: 511
83-34-3. (1) From and after March 22, 2007, the Mississippi 512
Windstorm Underwriting Association, as created by Chapter 459, 513
Laws of 1987, shall be a separate and independent entity as 514
provided for herein. At its option, the association may 515
incorporate. All assets belonging to the association on or before 516
March 22, 2007, shall hereinafter belong to and remain with the 517
association. There shall be no distribution of income or assets 518
other than for the benefit of the association, which shall have 519
the right to invest and reinvest assets. 520
(2) From and after March 22, 2007, the association shall no 521
longer have members. Former "members" of the association shall be 522
"assessable insurers" and shall have no rights to the assets and 523
profits of the association, but shall have the obligation for 524
regular assessments as provided herein. Former members shall 525
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continue to have the obligations provided in this chapter before 526
March 22, 2007, for all policyholder claims, costs, damages of any 527
kind and expenses in any manner resulting from losses that 528
occurred before March 22, 2007, for which the association may 529
assess as needed the former members in the manner provided in this 530
chapter before March 22, 2007. As a condition of its authority to 531
continue to transact the business of insurance in this state and 532
by transacting business in this state, each licensed insurer 533
agrees to be bound by the provisions of this statute and the plan 534
of operation as approved by the commissioner, and all amendments 535
and revisions thereto. 536
(3) Any licensed insurer first authorized to write insurance 537
after March 22, 2007, shall become an assessable insurer on the 538
first day of January immediately following such authorization. 539
The determination of such insurer's participation in the 540
association shall be made based upon writings in the prior year in 541
the same manner as for all other assessable insurers of the 542
association. 543
(4) Except as provided for in Section 83-34-4(6), the 544
premiums, recoupable and nonrecoupable assessments, fees, 545
investment income and other revenue of the association are funds 546
received for the sole purpose of providing insurance coverage, 547
paying claims for Mississippi citizens insured by the association, 548
securing and repaying debt obligations issued by the association, 549
and conducting all other activities of the association, all as 550
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required or permitted by this chapter. Such revenue shall not be 551
considered taxes, fees, licenses or charges for services imposed 552
by the State of Mississippi on individuals, businesses, or 553
agencies, and shall not be used for other purposes. 554
(5) It is the intent of the Legislature that the association 555
be and act as a nonprofit entity. The association shall be free 556
from taxation of every kind by the state and any political 557
subdivision or other instrumentality thereof. It is the intent of 558
the Legislature that the association be tax exempt from all taxes, 559
including federal taxes, and the association is granted the 560
authority to take those steps necessary to obtain federal tax 561
exempt status. 562
(6) Any debt obligations issued by the association, their 563
transfer, and the income therefrom, including any profit made on 564
the sale thereof, shall at all times be free from taxation of 565
every kind by the state and any political subdivision or other 566
instrumentality thereof. 567
(7) In the event of the termination of the association by 568
act of the Legislature, or other means, the assets of the 569
association shall be applied first to pay all debts, liabilities 570
and obligations of the association, including the establishment of 571
reasonable reserves for any contingent liabilities or obligations, 572
and all remaining assets of the association shall become property 573
of the state. 574
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(8) The association shall operate as a private enterprise 575
and shall not be subject to the procurement provisions of Section 576
31-7-13, and policies and decisions of the association, including, 577
but not limited to, decisions relating to incurring debt, levying 578
of recoupable and nonrecoupable assessments, the issuance and sale 579
of bonds, claims decisions under association policies, hiring and 580
firing of employees, and all services relating to the operation of 581
the association shall not be subject to the provisions of Section 582
25-9-101 et seq. The association shall not be required to obtain 583
or to hold a license or certificate of authority issued by the 584
commissioner or any other office. The association shall not be 585
required to participate as a member insurer of the Mississippi 586
Insurance Guaranty Association. 587
SECTION 19. Section 83-34-4, Mississippi Code of 1972, is 588
brought forward as follows: 589
83-34-4. (1) Nonadmitted insurers shall not be assessable 590
insurers of the association. All surplus lines insurance 591
producers placing insurance through nonadmitted insurers shall 592
collect from the insured and remit to the association a 593
nonadmitted policy fee on all premiums for all insurance written 594
by such surplus lines insurance producer for a policy from a 595
nonadmitted insurer for any and all risks in this state, except 596
that policies or portions thereof that cover residential 597
earthquake risks or residential flood risks that are not written 598
through the National Flood Insurance Program shall be exempt from 599
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the nonadmitted policy fee. By procuring or selling insurance on 600
property in this state from a nonadmitted insurer, each surplus 601
lines insurance producer placing insurance through a nonadmitted 602
insurer agrees to be bound by the provisions of this chapter and 603
to collect and remit the nonadmitted policy fee provided for 604
herein. 605
(2) The nonadmitted policy fee shall be a percentage of the 606
total policy premium but the nonadmitted policy fee shall not be 607
considered premium and is not subject to premium taxes or 608
commissions. However, failure to pay the nonadmitted policy fee 609
shall be treated the same as failure to pay premium. "Total 610
policy premium" includes taxes and commissions. 611
(3) The nonadmitted policy fee percentage shall be three 612
percent (3%). 613
(4) Within twenty (20) days of the end of the quarter, 614
surplus lines insurance producers placing insurance through 615
nonadmitted insurers shall remit directly to the association all 616
nonadmitted policy fees collected in the preceding quarter. In 617
addition to the nonadmitted policy fee provided for herein, 618
surplus lines insurance producers placing insurance through 619
nonadmitted insurers shall collect and remit excess deficit 620
surcharges as provided by this chapter. Surplus lines insurance 621
producers placing insurance through nonadmitted insurers may 622
designate another surplus lines insurance producer that actually 623
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procured the insurance from the nonadmitted carrier to collect and 624
remit the nonadmitted policy fees. 625
(5) Each insured in this state who directly procures or 626
renews insurance with a nonadmitted insurer on properties, risks 627
or exposures located or to be performed, in whole or in part, in 628
this state, other than insurance procured through a surplus lines 629
licensee, shall be subject to the nonadmitted policy fee which 630
shall be paid by the insured according to the procedures provided 631
for premium taxes in Section 83-21-17(5). 632
(6) Monies derived from the nonadmitted policy fee collected 633
under this section shall not be considered public funds and may be 634
used by the association, in addition to any uses provided for in 635
Section 83-34-3(4), for education, public outreach, training of 636
building officials and other programs targeted to reduce the 637
number of policies within the association; however, beginning on 638
July 1, 2018, and ending on June 30, 2019, before any fees are 639
remitted to the association, One Million Five Hundred Thousand 640
Dollars ($1,500,000.00) shall be diverted and deposited into the 641
Capital Expense Fund, and Four Million Five Hundred Thousand 642
Dollars ($4,500,000.00) shall be diverted and deposited into the 643
Rural Fire Truck Fund or Supplementary Rural Fire Truck Fund. 644
Further, beginning July 1, 2019, and ending on June 30, 2020, 645
before any fees are remitted to the association, Three Million 646
Five Hundred Thousand Dollars ($3,500,000.00) shall be diverted 647
and deposited into the Rural Fire Truck Fund or Supplementary 648
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Rural Fire Truck Fund. Further, beginning July 1, 2022, before 649
any fees are remitted to the association but only if the 650
association will receive at least sixty percent (60%) of the fees, 651
Five Hundred Thousand Dollars ($500,000.00) shall be diverted and 652
deposited annually into the Mississippi First Responders Health 653
and Safety Trust Fund created in Section 25-15-411. Further, 654
beginning July 1, 2022, but only if the association will receive 655
at least sixty percent (60%) of the fees and the Mississippi First 656
Responders Health and Safety Trust Fund has received the diversion 657
of Five Hundred Thousand Dollars ($500,000.00), Three Million Five 658
Hundred Thousand Dollars ($3,500,000.00) shall be diverted and 659
deposited annually into the Annual Fire Fund created in Section 660
17-23-21. Further, beginning July 1, 2022, after the association 661
has received sixty percent (60%) of the fees and after all other 662
diversions are made, fifty percent (50%) of any excess amount 663
shall be remitted to the association and fifty percent (50%) of 664
any excess amount shall be diverted and deposited annually into 665
the Annual Fire Fund. 666
In the event the value of the association's Total Admitted 667
Assets, as defined by the audited financial statement, is less 668
than Two Hundred Fifty Million Dollars ($250,000,000.00), the 669
monies diverted and not remitted to the association under this 670
subsection (6) during that fiscal year and subsequent fiscal years 671
shall immediately be diverted to the association and shall not be 672
considered public funds. 673
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(7) The association may use excess funds to purchase 674
reinsurance in an amount that may exceed the total premiums 675
collected from policyholders. 676
SECTION 20. Section 83-34-7, Mississippi Code of 1972, is 677
brought forward as follows: 678
83-34-7. (1) The Board of Directors of the Mississippi 679
Insurance Underwriting Association as presently constituted shall 680
serve as the temporary board of directors of the association. 681
Such temporary board of directors shall prepare and submit a plan 682
of operation in accordance with Section 83-34-13 and shall serve 683
until the permanent board of directors shall take office in 684
accordance with the plan of operation. The permanent board shall 685
consist of five (5) representatives of the members to be appointed 686
by the temporary board of directors subject to the approval of the 687
commissioner and three (3) agents from the coast area to be 688
appointed by the commissioner. The terms of the members of the 689
board of directors in place before March 22, 2007, shall expire on 690
March 22, 2007, and such persons shall cease to serve on the board 691
and shall relinquish all power and control of the association. 692
(2) (a) From and after March 22, 2007, the board of 693
directors of the association shall consist of the following: 694
(i) The State Treasurer; 695
(ii) Five (5) of the assessable insurer companies, 696
three (3) to be appointed by the commissioner, one (1) to be 697
appointed by the Governor, and one (1) to be appointed by the 698
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Lieutenant Governor; each such assessable insurer appointed shall 699
designate a representative knowledgeable in the matters of the 700
association and authorize such representative to act and vote on 701
its behalf; 702
(iii) Three (3) agents with no less than ten (10) 703
years' experience in the property and casualty industry, two (2) 704
of whom are residents in the coast area, and one (1) of whom is 705
not a resident of the coast area; one (1) such coast area agent to 706
be appointed by the Governor, one (1) such coast area agent to be 707
appointed by the Lieutenant Governor, and the noncoast area agent 708
to be appointed by the commissioner; and 709
(iv) Two (2) business leaders who have been 710
residents of the coast area for no less than ten (10) years and 711
who have no less than ten (10) years' experience in management of 712
a business, one (1) to be appointed by the Governor, and one (1) 713
to be appointed by the Lieutenant Governor. 714
(b) Except for the State Treasurer, the board members 715
shall serve three-year terms with each term beginning on January 716
1, and the initial terms shall be staggered in the following 717
manner: 718
(i) The initial term for three (3) of the 719
assessable insurers shall begin on March 22, 2007, and expire on 720
December 31, 2010, thereafter to be appointed for three-year 721
terms; 722
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(ii) The initial term for one (1) of the 723
assessable insurers shall begin on March 22, 2007, and expire on 724
December 31, 2009, thereafter to be appointed for three-year 725
terms; 726
(iii) The initial term for one (1) of the 727
assessable insurers shall begin on March 22, 2007, and expire on 728
December 31, 2008, thereafter to be appointed for three-year 729
terms; 730
(iv) The initial term for one (1) of the agents 731
shall begin on March 22, 2007, and expire on December 31, 2010, 732
thereafter to be appointed for three-year terms; 733
(v) The initial term for one (1) of the agents 734
shall begin on March 22, 2007, and expire on December 31, 2009, 735
thereafter to be appointed for three-year terms; 736
(vi) The initial term for one (1) of the agents 737
shall begin on March 22, 2007, and expire on December 31, 2008, 738
thereafter to be appointed for three-year terms; 739
(vii) The initial term for one (1) of the business 740
leaders shall begin on March 22, 2007, and expire on December 31, 741
2010, thereafter to be appointed for three-year terms; 742
(viii) The initial term for one (1) of the 743
business leaders shall begin on March 22, 2007, and expire on 744
December 31, 2008, thereafter to be appointed for three-year 745
terms. 746
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(3) On or before March 22, 2007, the appropriate public 747
official shall make such appointments and request such 748
resignations from the existing board as are appropriate to comply 749
with this section. 750
(4) The board shall be staffed by as many employees as it 751
deems necessary. 752
(5) The board of directors has the power to act and make 753
binding decisions on behalf of the association on all issues. 754
SECTION 21. Section 83-34-9, Mississippi Code of 1972, is 755
brought forward as follows: 756
83-34-9. (1) All assessable insurers of the association 757
shall participate in recoupable and nonrecoupable assessments 758
levied by the association based upon their percentage of 759
participation. The association may allow affiliated insurers to 760
combine their annual net direct premiums and other data, including 761
data that supports any incentives that may be allowed by the 762
association, to the extent that such grouping promotes the 763
voluntary writing of essential property insurance in the coast 764
area. Any provisions for credits and grouping of data shall be 765
prescribed in the plan of operation. 766
(2) All profits of the association shall remain as assets of 767
the association. 768
(3) The plan of operation shall provide financial incentives 769
or financial penalties, or both, to ensure that assessable 770
insurers write essential property insurance in the coast area. 771
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The incentives and penalties may include, but are not limited to, 772
a reduction in recoupable and nonrecoupable assessments, 773
adjustments in the percentage of participation, and other 774
incentives and penalties as provided in the plan of operation. 775
The commissioner shall approve the plan of operation as provided 776
in Section 83-34-13. 777
SECTION 22. Section 83-34-10, Mississippi Code of 1972, is 778
brought forward as follows: 779
83-34-10. (1) In the event of a covered event that may 780
produce losses in excess of funds that may be immediately 781
available to the association, or in the event that the association 782
determines that it will otherwise have a claim deficit or any 783
other deficit, then the association, with consent of the 784
commissioner, shall have the power to levy recoupable and 785
nonrecoupable assessments against assessable insurers based upon 786
their percentage of participation. 787
The minimum reserve, as set forth in the plan of operation, 788
shall not be considered as funds available to the association in 789
determining whether to levy a recoupable or nonrecoupable 790
assessment. 791
(2) A nonrecoupable assessment levied under this section 792
shall not exceed six percent (6%) of the association's year-end 793
total limits in force for the preceding calendar year, or Two 794
Hundred Fifty Million Dollars ($250,000,000.00), whichever is 795
less. Further, in any calendar year, the annual total of all 796
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nonrecoupable assessment funds collected shall not exceed, in the 797
aggregate, Two Hundred Fifty Million Dollars ($250,000,000.00). 798
SECTION 23. Section 83-34-12, Mississippi Code of 1972, is 799
brought forward as follows: 800
83-34-12. The recoupable or nonrecoupable assessment of an 801
assessable insurer may, after hearing, be ordered deferred, in 802
whole or in part, upon application by the insurer if, in the 803
opinion of the commissioner, payment of the recoupable or 804
nonrecoupable assessment would render the insurer insolvent or in 805
danger of insolvency, or would otherwise leave the insurer in such 806
a condition that further transaction of the insurer's business 807
would be hazardous to its policyholders, creditors, assessable 808
insurers, subscribers, stockholders or the public. If that 809
payment of a recoupable or nonrecoupable assessment against an 810
assessable insurer is deferred by order of the commissioner, in 811
whole or in part, the amount by which the recoupable or 812
nonrecoupable assessment is deferred shall be assessed against 813
other assessable insurers in the same manner as provided in 814
Section 83-34-9. 815
SECTION 24. Section 83-34-13, Mississippi Code of 1972, is 816
brought forward as follows: 817
83-34-13. (1) Within forty-five (45) days after March 22, 818
2007, the directors of the association shall submit to the 819
commissioner for review and approval a proposed plan of operation 820
revised to be consistent with the provisions of Chapter 425, Laws 821
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of 2007. The association shall maintain a plan of operation. The 822
plan shall provide for the efficient, economical, fair and 823
nondiscriminatory administration of the association. The plan may 824
include the establishment of a minimum reserve, methods for the 825
nonrecoupable assessment of all assessable insurers for deficits 826
and expenses, the establishment of necessary facilities, 827
management of the association, underwriting standards, procedures 828
for determining the amounts of insurance to be provided to 829
specific risks, time limits and procedures for processing 830
applications for insurance, and for such other provisions as may 831
be deemed necessary by the board to carry out the purposes of this 832
chapter. The plan of operation shall include in the plan of 833
operation a mechanism for recoupment of recoupable assessments. 834
(2) The plan of operation shall provide financial incentives 835
or financial penalties, or both, to ensure that assessable 836
insurers write essential property insurance in the coast area. 837
The incentives and penalties may include, but are not limited to, 838
a reduction in nonrecoupable assessments, adjustments in the 839
percentage of participation, and other incentives and penalties as 840
provided in the plan of operation. 841
(3) The plan of operation shall provide (a) that the 842
association shall offer a two percent (2%) deductible for loss 843
from named storms; and (b) that the association shall also offer 844
options for other deductibles for loss from named storms with 845
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appropriate rate reductions that shall include at least a twenty 846
percent (20%) deductible for loss from named storms. 847
(4) The plan of operation shall provide that the association 848
use actuarially appropriate geographical zones for rating and for 849
the use of credits and penalties to encourage voluntary writing in 850
the coast area. 851
(5) The commissioner shall approve the plan of operation and 852
all amendments before they become effective. It is the obligation 853
of the commissioner to confirm that such plan fulfills the 854
purposes of this chapter. If the commissioner approves a proposed 855
plan or amendment, he shall certify the approval to the directors, 856
and the plan, or amendment thereto, shall become effective ten 857
(10) days after such certification. If the commissioner 858
disapproves all or any part of the proposed plan of operation, or 859
amendment thereto, he shall return the same to the directors with 860
a written statement giving the reasons for disapproval and any 861
recommendations the commissioner may wish to make. Within ten 862
(10) days thereafter, the directors may alter the plan or 863
amendment in accordance with the commissioner's recommendation or 864
may return a new plan to the commissioner. The commissioner shall 865
consider the proposals and shall then promulgate and place into 866
effect a plan of operation certifying the same to the directors of 867
the association after approval by the board of directors. Any 868
such plan promulgated by the commissioner shall take effect ten 869
(10) days after certification to the directors. 870
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(6) The commissioner may review the plan of operation at any 871
time he deems expedient or prudent. After review of the plan, the 872
commissioner may amend the plan after consultation with the 873
directors of the association and upon certification to the 874
directors of the amendment. 875
SECTION 25. Section 83-34-15, Mississippi Code of 1972, is 876
brought forward as follows: 877
83-34-15. (1) (a) Any person having an insurable interest 878
in insurable property is entitled to apply to the association for 879
such coverage. Applications shall be made on behalf of the owner 880
of the insurable interest by a licensed resident broker or agent 881
authorized by him. Applications shall be submitted on forms 882
prescribed by the association. 883
(b) The association may require an inspection of any 884
properties after application or request for renewal and may charge 885
a fee for such inspection. 886
(c) The term "insurable interest" as used in this 887
subsection shall be deemed to include any lawful and substantial 888
economic interest in the safety or preservation of property from 889
loss, destruction or pecuniary damage. 890
(2) If the association determines that the property is 891
insurable and that there is no unpaid premium due from the 892
applicant for prior insurance on the property, the association, 893
upon receipt of the premium or such portion thereof as is 894
prescribed in the plan of operation, shall cause to be issued, or 895
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issue, a policy of essential property insurance. Such coverage 896
shall be dependent upon the timely payment and actual receipt by 897
the association of premiums or premium installments as provided 898
for at the time of application. Coverage limits shall be 899
determined by the value of the insurable property at the time the 900
policy is issued subject to maximum limits which shall be set 901
forth under the plan of operation. 902
(3) If the association for any reason denies an application 903
and refuses to issue or cause to be issued an insurance policy to 904
any applicant, or takes no action on an application within the 905
time prescribed in the plan of operation, such applicant may 906
appeal to the commissioner. The commissioner or a designated 907
member of his staff, after reviewing the facts, may direct the 908
association to issue or cause to be issued an insurance policy to 909
the applicant; however, no coverage shall be in effect until such 910
time as the premium is paid and the policy issued. In carrying 911
out his duties pursuant to this section, the commissioner may 912
request, and the association shall provide, any information the 913
commissioner deems necessary to a determination concerning the 914
reasons for the denial or delay of the application. 915
SECTION 26. Section 83-34-16, Mississippi Code of 1972, is 916
brought forward as follows: 917
83-34-16. The Mississippi Windstorm Underwriting Association 918
shall provide a premium discount for any individual who builds a 919
"fortified home" pursuant to the Institute for Business and Home 920
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Safety (IBHS). Licensed architects, engineers or inspectors 921
certified by the Department of Insurance shall determine whether a 922
dwelling meets the criteria for a "fortified home" pursuant to the 923
Institute for Business and Home Safety. The Mississippi Windstorm 924
Underwriting Association shall provide a premium discount for any 925
individual who improves his residence with demonstrated mitigation 926
measures that provide protection against damages caused by a 927
windstorm or hurricane. 928
SECTION 27. Section 83-34-17, Mississippi Code of 1972, is 929
brought forward as follows: 930
83-34-17. The rates, rating plans, rating rules, forms and 931
endorsements applicable to the insurance written by the 932
association shall be those approved for use of the association by 933
the commissioner. Rates shall be nondiscriminatory as to the same 934
class of risk. 935
SECTION 28. Section 83-34-19, Mississippi Code of 1972, is 936
brought forward as follows: 937
83-34-19. (1) Any assessable insurer or other licensed 938
insurer, or agent placing insurance through a nonadmitted insurer, 939
who may be aggrieved by an act, order, ruling or decision of the 940
association may, within thirty (30) days after such ruling, appeal 941
to the commissioner. Any hearings held by the commissioner 942
pursuant to such an appeal shall be in accordance with the 943
procedure set forth in the insurance laws of Mississippi. The 944
commissioner is authorized to appoint a member of his staff for 945
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the purpose of hearing such appeals, and a ruling based upon such 946
hearing shall have the same effect as if heard by the 947
commissioner. All assessable insurers or other licensed insurers, 948
or agents placing insurance through a nonadmitted insurer, 949
aggrieved by any order or decision of the commissioner may appeal 950
to the Chancery Court of the First Judicial District of Hinds 951
County, Mississippi, consistent with the insurance laws of the 952
State of Mississippi. 953
(2) The association and any assessable insurer, other 954
licensed insurer or agent placing insurance through a nonadmitted 955
insurer that may be aggrieved by an act, order, ruling or decision 956
of the commissioner may, within thirty (30) days after such act, 957
order, ruling or decision, appeal to the Chancery Court of the 958
First Judicial District of Hinds County, Mississippi, consistent 959
with the insurance laws of the State of Mississippi. 960
SECTION 29. Section 83-34-21, Mississippi Code of 1972, is 961
brought forward as follows: 962
83-34-21. All reports of inspection performed by or on 963
behalf of the association shall be made available to the 964
assessable insurers of the association, applicants, agents, 965
brokers and the commissioner. 966
SECTION 30. Section 83-34-23, Mississippi Code of 1972, is 967
brought forward as follows: 968
83-34-23. There shall be no liability on the part of the 969
insurance commissioner or any of his staff and representatives for 970
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any action taken under and pursuant to the provisions of this 971
chapter. There shall be no liability on the part of the 972
association, its agents, representatives or employees, the members 973
of the board, or any assessable insurer of the association, except 974
for the specific obligations stated in any contract of insurance 975
and the duty to pay assessments as provided in this chapter. 976
SECTION 31. Section 83-34-25, Mississippi Code of 1972, is 977
brought forward as follows: 978
83-34-25. The association shall file in the office of the 979
commissioner on or before March 1 of each year a statement which 980
shall summarize the transactions, conditions, operations and 981
affairs of the association during the preceding fiscal year ending 982
December 31. Such statement shall contain such matters and 983
information as are prescribed by the commissioner and shall be in 984
such form as required by him. The commissioner may at any time 985
require the association to furnish to him any additional 986
information with respect to its transactions or any other matter 987
which the commissioner deems to be material to assist him in 988
evaluating the operation and experience of the association. 989
SECTION 32. Section 83-34-27, Mississippi Code of 1972, is 990
brought forward as follows: 991
83-34-27. The commissioner may from time to time make an 992
examination into the affairs of the association when he deems 993
prudent and, in undertaking such examination, may hold a public 994
hearing. The expenses of such examination shall be borne and paid 995
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by the association. The association and the commissioner may from 996
time to time make an examination of the data and payments of 997
assessable insurers or other licensed insurers or agents placing 998
insurance through nonadmitted insurers as it deems prudent. The 999
expenses of such examination shall be borne and paid by the 1000
examined party or entity. Any person noticed for such examination 1001
may appeal the examination or the cost thereof, or both, to the 1002
commissioner. 1003
SECTION 33. Section 83-34-29, Mississippi Code of 1972, is 1004
brought forward as follows: 1005
83-34-29. The association is authorized to promulgate rules 1006
for the implementation of this chapter, subject to the approval of 1007
the commissioner. 1008
SECTION 34. Section 83-34-31, Mississippi Code of 1972, is 1009
brought forward as follows: 1010
83-34-31. (1) The board of directors, subject to the 1011
approval of the commissioner, shall have the power and authority 1012
to issue bonds, and the power and authority to enter into loans, 1013
letters of credit, lines of credit, and other forms of 1014
indebtedness, as needed for operations, the purchase of 1015
reinsurance, claim losses, and incurred but not reported claims. 1016
(2) The bonds must be in a form approved by the 1017
commissioner. With approval of the commissioner, the association 1018
may issue bonds or incur other indebtedness to retire or 1019
consolidate bonds as appropriate. Bonds and other debt 1020
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obligations issued by or on behalf of the association are not to 1021
be considered "state bonds" and shall not be an obligation of the 1022
state. 1023
(3) The state hereby covenants with holders of bonds issued 1024
pursuant to this chapter that the state will not limit, alter or 1025
deny the duties and obligations of this chapter, and of the 1026
association and the commissioner as established by this chapter, 1027
necessary to fulfill the terms of any agreements with bondholders, 1028
or in any way impair the rights and remedies of such bondholders 1029
as long as any such bonds remain outstanding unless adequate 1030
provision has been made for the payment of such bonds pursuant to 1031
the documents authorizing the issuance of such bonds. 1032
SECTION 35. Section 83-34-33, Mississippi Code of 1972, is 1033
brought forward as follows: 1034
83-34-33. (1) When the association knows or has reason to 1035
believe that (a) it has or will incur losses from a covered event 1036
that exceeds available surplus, reinsurance, recoupable or 1037
nonrecoupable assessments and other reasonably available assets of 1038
the association, such that one or more bond issues or other 1039
financing, or both, will be necessary to pay claims losses and 1040
other related expenses, or (b) the association has an excess 1041
deficit that cannot be reasonably resolved by income available to 1042
the association above the minimum reserve, then the association 1043
shall immediately give notice to the commissioner and request that 1044
the commissioner implement an excess deficit surcharge on all 1045
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property and casualty insurance premiums for insurance for 1046
property and operations in this state designed to recover to the 1047
association the amount of all such bonds and other indebtedness 1048
resulting from the covered event, or other deficit. 1049
(2) All such bonds and loans are secured by the power and 1050
duty of the commissioner to implement surcharges against all 1051
property and casualty insurance premiums for insurance for 1052
property and activities in this state sufficient to repay the 1053
bonds or loans, or both. 1054
(3) If any of the bonds remain unsold sixty (60) days after 1055
issuance, the commissioner shall require all assessable insurers 1056
to purchase the bonds, which purchased bonds shall be treated as 1057
admitted assets; each assessable insurer shall be required to 1058
purchase that percentage of the unsold portion of the bond issue 1059
that equals the assessable insurer's current percentage of 1060
participation. An assessable insurer shall not be required to 1061
purchase the bonds to the extent that the commissioner determines 1062
that the purchase would endanger or impair the solvency of the 1063
insurer. The bonds must be in a form approved by the 1064
commissioner. With approval of the commissioner, the association 1065
may issue bonds or incur other indebtedness to retire or 1066
consolidate bonds as appropriate. Bonds and other debt 1067
obligations issued by or on behalf of the association are not to 1068
be considered "state bonds" and shall not be an obligation of the 1069
state. 1070
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(4) At such time as the commissioner can reasonably estimate 1071
the amount of bonds or indebtedness, or both, necessitated by a 1072
covered event, and in no event more than ninety (90) days from the 1073
notice given by the association, the commissioner shall have the 1074
duty and the power to implement an excess deficit surcharge on all 1075
property and casualty insurance premiums for insurance for 1076
property and activities in this state. "Premiums" includes 1077
premiums for policies issued by or for the association and by or 1078
for the Mississippi Residential Property Insurance Underwriting 1079
Association. "Premiums" shall not include premiums for workers' 1080
compensation coverage, premiums for medical malpractice liability 1081
coverage including medical malpractice liability coverage issued 1082
by companies created under Section 83-47-1 et seq., nor any 1083
premiums for coverage by insurance pools or plans administered by 1084
or through the State of Mississippi. 1085
(5) If the excess deficit surcharge is designed to repay 1086
bonds, it shall be designated as such and all funds recovered from 1087
the excess deficit surcharge shall be used for repayment of the 1088
bonds for which it was implemented, until such time as the bonds 1089
have been paid or redeemed. 1090
(6) If the excess deficit surcharge is designed to repay a 1091
specific indebtedness incurred for losses from a specific covered 1092
event, it shall be designated as such and all funds recovered from 1093
the excess deficit surcharge shall be used for repayment of the 1094
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indebtedness for which it was implemented, until such time as the 1095
indebtedness has been paid or redeemed. 1096
(7) Such excess deficit surcharge shall be specifically 1097
identified on either the premium statements or the policy 1098
declarations pages or other appropriate policy forms as relating 1099
to the specific covered event losses or bonds or indebtedness for 1100
which it was implemented. The commissioner shall name each such 1101
excess deficit surcharge so that it can be uniformly identified by 1102
insurers and agents. 1103
(8) The excess deficit surcharge shall be a percentage of 1104
the total policy premium but the excess deficit surcharge shall 1105
not be considered premium and is not subject to premium taxes or 1106
commissions. However, failure to pay the excess deficit surcharge 1107
shall be treated the same as failure to pay premium. "Total 1108
policy premium" includes taxes and commissions. 1109
(9) The commissioner shall implement an appropriate excess 1110
deficit surcharge percentage sufficient to recover the amount 1111
necessary for repayment of bonds and indebtedness necessitated by 1112
a covered event, or the resolution of other deficit, as 1113
applicable. If at any time such surcharge shall be insufficient, 1114
the commissioner shall increase the excess deficit surcharge as 1115
necessary and appropriate. The commissioner shall cease excess 1116
deficit surcharges as he determines appropriate funds have been 1117
collected. However, the commissioner shall endeavor to apply 1118
excess deficit surcharges on a one-year basis in order to promote 1119
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consistency, nondiscrimination and fairness among policyholders 1120
purchasing or renewing insurance during that year. Any 1121
collections in excess of the amounts needed shall be assets of the 1122
association for investment and other uses. 1123
(10) Each licensed insurer issuing insurance for property 1124
and casualty risks in the state and each agent placing insurance 1125
through nonadmitted insurers, shall collect the excess deficit 1126
surcharges established by the commissioner under the authority of 1127
this section. Funds collected by such licensed insurers and 1128
agents placing insurance through nonadmitted insurers as excess 1129
deficit surcharges authorized by this section shall be collected 1130
and held in trust and shall be fully remitted to the association 1131
on a quarterly basis with forms providing appropriate information 1132
as designed by the association. Insurers and agents shall remit 1133
such funds to the association within twenty (20) days after the 1134
end of each quarter. At such time the insurers and agents shall 1135
further remit to the association all interest earned on the excess 1136
deficit surcharge funds. 1137
(11) The association and the commissioner are both 1138
specifically given the power to audit licensed insurers and agents 1139
placing insurance through nonadmitted insurers to confirm the 1140
accuracy of remittances of excess deficit surcharges at the 1141
expense of the licensed insurers and agents. 1142
(12) The commissioner has the duty and power to adjust the 1143
percentage of any excess deficit surcharge previously established 1144
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as he finds appropriate taking into consideration any relevant 1145
factors, including, but not limited to, consolidation or 1146
replacement of bonds, any additional indebtedness resulting from a 1147
covered event, the rate of recovery, anticipated length of total 1148
recovery, and impact of other covered events; however, the 1149
commissioner shall not reduce the amount of excess deficit 1150
surcharges implemented and designated to pay or redeem bonds, or 1151
other indebtedness below the amount necessary to timely pay or 1152
redeem such bonds, or other indebtedness. 1153
(13) When the association knows or has reason to believe 1154
that excess deficit surcharges authorized by this section 1155
previously established by the commissioner will be insufficient to 1156
timely pay or redeem bonds or indebtedness, the association shall 1157
immediately give notice to the commissioner. The commissioner 1158
shall alter such excess deficit surcharge as necessary to timely 1159
pay or redeem bonds or pay other indebtedness. 1160
(14) The association shall report quarterly to the 1161
commissioner providing all financial information for each excess 1162
deficit surcharge authorized by this section, including: 1163
(a) The original and current outstanding indebtedness 1164
of all bonds and loans; 1165
(b) Total excess deficit surcharge funds recovered to 1166
date; and 1167
(c) Any information requested by the commissioner. 1168
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(15) The commissioner may request, and the association shall 1169
provide, on an immediate basis to the commissioner any financial 1170
information or other information concerning any excess deficit 1171
surcharge. This section shall not limit the reporting 1172
requirements provided by Section 83-34-25. 1173
SECTION 36. Section 83-34-35, Mississippi Code of 1972, is 1174
brought forward as follows: 1175
83-34-35. In order to avoid or lessen the possibility and 1176
amount of excess deficit surcharges authorized by this chapter, 1177
the commissioner shall approve rates for policies issued by the 1178
association at least adequate to fund annual reinsurance above a 1179
self-insured retention of One Hundred Million Dollars 1180
($100,000,000.00) that, combined with any readily available 1181
reserves of the association, is sufficient to cover at least the 1182
probable maximum losses from a storm expected to occur once every 1183
one hundred (100) years as predicted by a model or method approved 1184
by the commissioner for the properties insured by the association 1185
at the time the reinsurance was negotiated. The amount of 1186
reinsurance in the foregoing rate adequacy requirement shall 1187
increase every two (2) years by increasing the probable maximum 1188
loss by five (5) years, until such time as the probable maximum 1189
loss insured is for a storm expected to occur every one hundred 1190
fifty (150) years. The commissioner may approve rates in excess 1191
of the minimums required by this section as consistent with his 1192
duties and the insurance laws of the State of Mississippi. Any 1193
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self-insured retention related to the purchase of reinsurance 1194
shall be subject to the prior approval of the commissioner. 1195
SECTION 37. Section 83-34-37, Mississippi Code of 1972, is 1196
brought forward as follows: 1197
83-34-37. (1) (a) There is created in the State Treasury a 1198
special fund to be designated as the "Mississippi Windstorm 1199
Underwriting Association Reinsurance Assistance Fund." The fund 1200
shall consist of monies deposited therein as provided under 1201
Section 83-34-39, monies appropriated by act of the Legislature 1202
and monies from any other source designated for deposit into such 1203
fund. Unexpended amounts remaining in the fund at the end of a 1204
fiscal year shall not lapse into the State General Fund, and any 1205
interest earned or investment earnings on amounts in the fund 1206
shall be deposited to the credit of the fund; however, any monies 1207
in excess of Fifty Million Dollars ($50,000,000.00) remaining in 1208
the fund at the end of a fiscal year that have not been 1209
appropriated shall lapse into the State General Fund. 1210
(b) Monies in the special fund may be used by the 1211
Department of Insurance, upon appropriation by the Legislature, 1212
only for the purpose of assisting the Mississippi Windstorm 1213
Underwriting Association in defraying expenses and costs for 1214
reinsurance under Section 83-34-1 et seq. The association may use 1215
any such funds received from the Department of Insurance for the 1216
sole purpose of defraying expenses and costs for reinsurance. 1217
Monies in the fund used for the purposes described in this 1218
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paragraph (b) shall be in addition to other funds available from 1219
any other source for such purposes. 1220
(c) Monies in the special fund may not be used, 1221
expended or transferred for any other purpose except upon 1222
amendment to this section by a bill enacted by the Legislature 1223
with a vote of not less than two-thirds (2/3) of the members of 1224
each house present and voting. 1225
(2) (a) The Commissioner of Insurance shall file a report 1226
with the Joint Legislative Budget Committee not later than 1227
September 1 of each year, recommending the amount of assistance, 1228
if any, needed by the Mississippi Windstorm Underwriting 1229
Association for reinsurance expenses and costs. The Commissioner 1230
of Insurance also shall provide a copy of the report to the 1231
Attorney General and the Executive Director of the Mississippi 1232
Development Authority. 1233
(b) The Mississippi Windstorm Underwriting Association 1234
shall prepare and file detailed reports with the Clerk of the 1235
House of Representatives, Secretary of the Senate, Commissioner of 1236
Insurance, Attorney General and Executive Director of the 1237
Mississippi Development Authority regarding the receipt and 1238
expenditure of monies by the association under this section. 1239
SECTION 38. Section 83-1-191, Mississippi Code of 1972, is 1240
brought forward as follows: 1241
83-1-191. (1) There is established within the Department of 1242
Insurance a Comprehensive Hurricane Damage Mitigation Program. 1243
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This section does not create an entitlement for property owners or 1244
obligate the state in any way to fund the inspection or 1245
retrofitting of residential property or commercial property in 1246
this state. Implementation of this program is subject to the 1247
availability of funds that may be appropriated by the Legislature 1248
for this purpose. The program may develop and implement a 1249
comprehensive and coordinated approach for hurricane damage 1250
mitigation that may include the following: 1251
(a) Cost-benefit study on wind hazard mitigation 1252
construction measures. The performance of a cost-benefit study to 1253
establish the most appropriate wind hazard mitigation construction 1254
measures for both new construction and the retrofitting of 1255
existing construction for both residential and commercial 1256
facilities within the wind-borne debris regions of Mississippi as 1257
defined by the International Building Code. The recommended wind 1258
construction techniques shall be based on both the newly adopted 1259
Mississippi building code sections for wind load design and the 1260
wind-borne debris region. The list of construction measures to be 1261
considered for evaluation in the cost-benefit study shall be based 1262
on scientifically established and sound, but common, construction 1263
techniques that go above and beyond the basic recommendations in 1264
the adopted building codes. This allows residents to utilize 1265
multiple options that will further reduce risk and loss and still 1266
be awarded for their endeavors with appropriate wind insurance 1267
discounts. It is recommended that existing accepted scientific 1268
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studies that validate the wind hazard construction techniques 1269
benefits and effects be taken into consideration when establishing 1270
the list of construction techniques that homeowners and business 1271
owners can employ. This will ensure that only established 1272
construction measures that have been studied and modeled as 1273
successful mitigation measures will be considered to reduce the 1274
chance of including risky or unsound data that will cost both the 1275
property owner and state unnecessary losses. The cost-benefit 1276
study shall be based on actual construction cost data collected 1277
for several types of residential construction and commercial 1278
construction materials, building techniques and designs that are 1279
common to the region. The study shall provide as much information 1280
as possible that will enhance the data and options provided to the 1281
public, so that homeowners and business owners can make informed 1282
and educated decisions as to their level of involvement. Based on 1283
the construction data, modeling shall be performed on a variety of 1284
residential and commercial designs, so that a broad enough 1285
representative spectrum of data can be obtained. The data from 1286
the study will be utilized in a report to establish tables 1287
reflecting actuarially appropriate levels of wind insurance 1288
discounts (in percentages) for each mitigation construction 1289
technique/combination of techniques. This report will be utilized 1290
as a guide for the Department of Insurance and the insurance 1291
industry for developing actuarially appropriate discounts, credits 1292
or other rate differentials, or appropriate reductions in 1293
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deductibles, for properties on which fixtures or construction 1294
techniques demonstrated to reduce the amount of loss in a 1295
windstorm have been installed or implemented. Additional data 1296
that will enhance the program, such as studies to reflect property 1297
value increases for retrofitting or building to the established 1298
wind hazard mitigation construction techniques and cost comparison 1299
data collected to establish the value of this program against the 1300
investment required to include the mitigation measures, also may 1301
be provided. 1302
(b) Wind certification and hurricane mitigation 1303
inspections. 1304
(i) Home-retrofit inspections of site-built, 1305
residential property, including single-family, two-family, 1306
three-family or four-family residential units, and a set of 1307
representative commercial facilities may be offered to determine 1308
what mitigation measures are needed and what improvements to 1309
existing residential properties are needed to reduce the 1310
property's vulnerability to hurricane damage. A state program may 1311
be established within the Department of Insurance to provide 1312
homeowners and business owners wind certification and hurricane 1313
mitigation inspections. The inspections provided to homeowners 1314
and business owners, at a minimum, must include: 1315
1. A home inspection and report that 1316
summarizes the results and identifies corrective actions a 1317
homeowner may take to mitigate hurricane damage. 1318
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2. A range of cost estimates regarding the 1319
mitigation features. 1320
3. Insurer-specific information regarding 1321
premium discounts correlated to recommended mitigation features 1322
identified by the inspection. 1323
4. A hurricane resistance rating scale 1324
specifying the home's current as well as projected wind resistance 1325
capabilities. 1326
This data may be provided by trained and certified inspectors 1327
in standardized reporting formats and forms to ensure all data 1328
collected during inspections is equivalent in style and content 1329
that allows construction data, estimates and discount information 1330
to be easily assimilated into a database. Data pertaining to the 1331
number of inspections and inspection reports may be stored in a 1332
state database for evaluation of the program's success and review 1333
of state goals in reducing wind hazard loss in the state. 1334
(ii) To qualify for selection by the department as 1335
a provider of wind certification and hurricane mitigation 1336
inspections services, the entity shall, at a minimum, and on a 1337
form and in the manner prescribed by the commissioner: 1338
1. Use wind certification and hurricane 1339
mitigation inspectors who: 1340
a. Have prior experience in residential 1341
and/or commercial construction or inspection and have received 1342
specialized training in hurricane mitigation procedures through 1343
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the state certified program. In order to qualify for training in 1344
the inspection process, the individual should be either a licensed 1345
building code official, a licensed contractor or inspector in the 1346
State of Mississippi, or a civil engineer. 1347
b. Have undergone drug testing and 1348
background checks. 1349
c. Have been certified through a state 1350
mandated training program, in a manner satisfactory to the 1351
department, to conduct the inspections. 1352
d. Have not been convicted of a felony 1353
crime of violence or of a sexual offense; have not received a 1354
first-time offender pardon or nonadjudication order for a felony 1355
crime of violence or of a sexual offense; or have not entered a 1356
plea of guilty or nolo contendere to a felony charge of violence 1357
or of a sexual offense. 1358
e. Submit a statement authorizing the 1359
Commissioner of Insurance to order fingerprint analysis or any 1360
other analysis or documents deemed necessary by the commissioner 1361
for the purpose of verifying the criminal history of the 1362
individual. The commissioner shall have the authority to conduct 1363
criminal history verification on a local, state or national level, 1364
and shall have the authority to require the individual to pay for 1365
the costs of such criminal history verification. 1366
2. Provide a quality assurance program 1367
including a reinspection component. 1368
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3. Have data collection equipment and 1369
computer systems, so that data can be submitted electronically to 1370
the state's database of inspection reports, insurance 1371
certificates, and other industry information related to this 1372
program. It is mandatory that all inspectors provide original 1373
copies to the property owner of any inspection reports, estimates, 1374
etc., pertaining to the inspection and keep a copy of all 1375
inspection materials on hand for state audits. 1376
(c) Financial grants to retrofit properties. Financial 1377
grants may be used to encourage single-family, site-built, 1378
owner-occupied, residential property owners or commercial property 1379
owners to retrofit their properties to make them less vulnerable 1380
to hurricane damage. No financial grant made under this section 1381
shall exceed Ten Thousand Dollars ($10,000.00) per recipient. 1382
(d) Education and consumer awareness. Multimedia 1383
public education, awareness and advertising efforts designed to 1384
specifically address mitigation techniques may be employed, as 1385
well as a component to support ongoing consumer resources and 1386
referral services. In addition, all insurance companies shall 1387
provide notification to their clients regarding the availability 1388
of this program, participation details, and directions to the 1389
state website promoting the program, along with appropriate 1390
contact phone numbers to the state agency administrating the 1391
program. The notification to the clients must be sent by the 1392
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insurance company within thirty (30) days after filing their 1393
insurance discount schedules with the Department of Insurance. 1394
(e) Advisory council. There is created an advisory 1395
council to provide advice and assistance to the program 1396
administrator with regard to his or her administration of the 1397
program. The advisory council shall consist of: 1398
(i) An agent, selected by the Independent 1399
Insurance Agents of Mississippi. 1400
(ii) Two (2) representatives of residential 1401
property insurers, selected by the Department of Insurance. 1402
(iii) One (1) representative of homebuilders, 1403
selected by the Home Builders Association of Mississippi. 1404
(iv) The Chairman of the House Insurance 1405
Committee, or his designee. 1406
(v) The Chairman of the Senate Insurance 1407
Committee, or his designee. 1408
(vi) The Executive Director of the Mississippi 1409
Windstorm Underwriting Association, or his designee. 1410
(vii) The Director of the Mississippi Emergency 1411
Management Agency, or his designee. 1412
Members appointed under subparagraphs (i) and (ii) shall 1413
serve at the pleasure of the Department of Insurance. All other 1414
members shall serve as voting ex officio members. Members of the 1415
advisory council who are not legislators, state officials or state 1416
employees shall be compensated at the per diem rate authorized by 1417
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Section 25-3-69, and shall be reimbursed in accordance with 1418
Section 25-3-41, for mileage and actual expenses incurred in the 1419
performance of their duties. Legislative members of the advisory 1420
council shall be paid from the contingent expense funds of their 1421
respective houses in the same manner as provided for committee 1422
meetings when the Legislature is not in session; however, no per 1423
diem or expense for attending meetings of the advisory council may 1424
be paid while the Legislature is in session. No advisory council 1425
member may incur per diem, travel or other expenses unless 1426
previously authorized by vote, at a meeting of the council, which 1427
action shall be recorded in the official minutes of the meeting. 1428
Nonlegislative members shall be paid from any funds made available 1429
to the advisory council for that purpose. 1430
(f) Rules and regulations. The Department of Insurance 1431
may adopt rules and regulations governing the Comprehensive 1432
Hurricane Damage Mitigation Program. The department also may 1433
adopt rules and regulations establishing priorities for grants 1434
provided under this section based on objective criteria that gives 1435
priority to reducing the state's probable maximum loss from 1436
hurricanes. However, pursuant to this overall goal, the 1437
department may further establish priorities based on the insured 1438
value of the dwelling, whether or not the dwelling is insured by 1439
the Mississippi Windstorm Underwriting Association and whether or 1440
not the area under consideration has sufficient resources and the 1441
ability to perform the retrofitting required. 1442
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(2) Nothing in this section shall prohibit the Department of 1443
Insurance from entering into an agreement with any other 1444
appropriate state agency to assist with or perform any of the 1445
duties set forth hereunder. 1446
(3) The Department of Insurance shall issue a request for 1447
proposals to contract with a third party for the administration of 1448
the Comprehensive Hurricane Damage Mitigation Program. The 1449
contract for the third-party administrator shall be funded from 1450
monies in the Comprehensive Hurricane Damage Mitigation Program 1451
Fund created in subsection (4) of this section, and that amount 1452
shall not exceed one percent (1%) of the funds appropriated to the 1453
Department of Insurance for the program. If the third-party 1454
administrator selected through the request for proposals is 1455
replaced or is otherwise changed, the Department of Insurance 1456
shall notify the Chairs of the House and Senate Appropriations and 1457
Insurance Committees. 1458
(4) There is created a special fund in the State Treasury to 1459
be known as the Comprehensive Hurricane Damage Mitigation Program 1460
Fund. The fund shall consist of any monies from any source that 1461
are designated or made available for deposit into the fund. The 1462
Department of Insurance may apply for any federal or private 1463
grants to provide additional funds for the special fund. Monies 1464
in the fund shall be expended by the Department of Insurance, upon 1465
appropriation by the Legislature, for the purposes as provided in 1466
this section. Unexpended amounts remaining in the fund at the end 1467
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of a fiscal year shall not lapse into the State General Fund, and 1468
any interest earned or investment earnings on amounts in the fund 1469
shall be deposited into such fund. 1470
(5) This section shall stand repealed from and after July 1, 1471
2028. 1472
SECTION 39. Section 83-1-201, Mississippi Code of 1972, is 1473
brought forward as follows: 1474
83-1-201. (1) There is created the Mississippi Windstorm 1475
Mitigation Coordinating Council for the purpose of developing and 1476
implementing a comprehensive and coordinated approach for 1477
windstorm mitigation. The council shall consist of the following: 1478
(a) The Commissioner of Insurance, or his designee, to 1479
serve ex officio; 1480
(b) The Chairman of the Board of Directors of the 1481
Mississippi Insurance Windstorm Underwriting Association, or his 1482
designee, to serve ex officio; 1483
(c) Two (2) members who are property and casualty 1484
insurance providers appointed by the Governor, to serve at his 1485
will and pleasure; 1486
(d) Two (2) members who are insurance producers from 1487
the Coast Area, as defined under Section 83-34-1, appointed by the 1488
Commissioner of Insurance, to serve at his will and pleasure; 1489
(e) One (1) member from the Home Builders Association 1490
of Mississippi or the State Board of Contractors appointed by the 1491
Commissioner of Insurance, to serve at his will and pleasure; 1492
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(f) One (1) nonvoting member from the Institute for 1493
Business and Home Safety appointed by the Governor, to serve at 1494
his will and pleasure; 1495
(g) One (1) member who is a representative of the state 1496
institutions of higher learning appointed by the Commissioner of 1497
Higher Education to serve at his will and pleasure, nonvoting; 1498
(h) The Director of the Mississippi State Rating 1499
Bureau, or his designee, to serve ex officio, nonvoting; and 1500
(i) The Chief Deputy State Fire Marshal, or his 1501
designee, to serve ex officio, nonvoting. 1502
(2) The Commissioner of Insurance shall convene the first 1503
meeting of the council within ninety (90) days of July 1, 2011, 1504
and shall act as temporary chairman until the council elects from 1505
its members a chairman and vice chairman. The council shall adopt 1506
regulations consistent with this section, subject to the approval 1507
of the Commissioner of Insurance. The council may also consider 1508
the mitigation measures and initiatives referenced under Section 1509
83-1-191 in developing and implementing a windstorm mitigation 1510
program. A meeting may be called by the chairman on his own 1511
initiative and must be called by him at the request of three (3) 1512
or more members of the council. Each member must be notified by 1513
the chairman in writing of the time and place of the meeting at 1514
least seven (7) days before the meeting. Four (4) voting members 1515
constitute a quorum. Each meeting is open to the public. An 1516
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official decision of the council may be made only by a vote of a 1517
majority of those voting members in attendance at the meeting. 1518
(3) The Mississippi Building Codes Council created under 1519
Section 17-2-3 shall serve as an advisory council to the council 1520
created under this section. 1521
(4) (a) There is created in the State Treasury a special 1522
fund to be designated as the "Mississippi Windstorm Mitigation 1523
Fund." The fund shall consist of monies appropriated by act of 1524
the Legislature and monies from any other public or private source 1525
designated for deposit into the fund. Unexpended amounts 1526
remaining in the fund at the end of a fiscal year shall not lapse 1527
into the State General Fund, and any interest earned or investment 1528
earnings on amounts in the fund shall be deposited to the credit 1529
of the fund. 1530
(b) Monies in the special fund may be used by the 1531
Department of Insurance, upon appropriation by the Legislature, 1532
only for the purposes of assisting the Mississippi Windstorm 1533
Mitigation Coordinating Council in developing and implementing a 1534
comprehensive and coordinated approach for windstorm mitigation 1535
including providing grants, developing education programs, 1536
providing funds for training local officials or providing any 1537
other assistance consistent with these purposes. 1538
SECTION 40. Section 27-15-103, Mississippi Code of 1972, is 1539
brought forward as follows: 1540
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27-15-103. (1) Except as otherwise provided in Section 1541
83-61-11, in addition to the license tax now or hereafter provided 1542
by law, which tax shall be paid when the company enters or is 1543
admitted to do business in this state, there is hereby levied and 1544
imposed upon all foreign insurance companies and associations, 1545
including life insurance companies and associations, health, 1546
accident and industrial insurance companies and associations, fire 1547
and casualty insurance companies and associations, and all other 1548
foreign insurance companies and associations of every kind and 1549
description, an additional annual license or privilege tax of 1550
three percent (3%) of the gross amount of premium receipts 1551
received from, and on insurance policies and contracts written in, 1552
or covering risks located in this state, except for premiums 1553
received on policies issued to fund a deferred compensation plan 1554
qualified under Section 457 of the Federal Tax Code for federal 1555
tax exemption. In determining said amount of premiums, there 1556
shall be deducted therefrom premiums received for reinsurance from 1557
companies authorized to do business in this state, cash dividends 1558
paid under policy contracts in this state, and premiums returned 1559
to policyholders and cancellations on accounts of policies not 1560
taken, and, in the case of mutual insurance companies (including 1561
interinsurance and reciprocal exchanges, but not including mutual 1562
life, accident, health or industrial insurance companies) any 1563
refund made or credited to the policyholder other than for losses. 1564
The term "premium" as used herein shall also include policy fees, 1565
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membership fees, and all other fees collected by the companies. 1566
No credit or deduction from gross premium receipts shall be 1567
allowed for any commission, fee or compensation paid to any agent, 1568
solicitor or representative. Provided, however, that any foreign 1569
insurance carrier selected to furnish service to the State of 1570
Mississippi under the State Employees Life and Health Insurance 1571
Plan shall not be required to pay the annual license or privilege 1572
tax on the premiums collected for coverage under the said plan. 1573
(2) In the event that the Mississippi Supreme Court or 1574
another court finally adjudicates that any tax levied prior to 1575
July 1, 1985, under the provisions of this section was collected 1576
unconstitutionally and that a liability for a credit or refund for 1577
such collection has accrued, then the rate of tax set forth above 1578
shall be increased to four percent (4%) for a period of six (6) 1579
years beginning July 1 following such adjudication. 1580
(3) The taxes herein levied and imposed for the calendar 1581
year 1982 and all calendar years thereafter shall be reduced by 1582
the net amount of income tax paid to this state for the preceding 1583
calendar year, provided, in no event may the credit be taken more 1584
than once. The credit herein authorized shall, in no event, be 1585
greater than the premium tax due under this section; it being the 1586
purpose and intent of this paragraph that whichever of the annual 1587
insurance premium tax or the income tax is greater in amount shall 1588
be paid. 1589
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SECTION 41. Section 27-15-109, Mississippi Code of 1972, is 1590
brought forward as follows: 1591
27-15-109. (1) Except as otherwise provided in Section 1592
83-61-11, there is hereby levied and imposed upon each domestic 1593
company doing business in this state an annual tax of three 1594
percent (3%) of the gross amount of premiums collected by such 1595
domestic company on insurance policies and contracts written in, 1596
or covering risks located in this state, except for premiums 1597
received on policies issued to fund a retirement, thrift or 1598
deferred compensation plan qualified under Section 401, Section 1599
403 or Section 457 of the Federal Tax Code for federal tax 1600
exemption. Provided, however, that a domestic insurance company 1601
against which is levied additional premium tax under retaliatory 1602
laws of other states in which it does business, as a result of the 1603
tax increase provided by Sections 27-15-103 through 27-15-117, may 1604
deduct the total of such additional retaliatory tax from the state 1605
income tax due by it to the State of Mississippi. The insurance 1606
carriers selected to furnish service to the State of Mississippi, 1607
under the State Employees Life and Health Insurance Plan, shall 1608
not be required to pay the premium tax levied against insurance 1609
companies under this section on the premiums collected for 1610
coverage under the state employees plan. 1611
(2) Except as expressly provided by subsection (1) of this 1612
section, all of the provisions of Sections 27-15-103 through 1613
27-15-117 shall be applicable to such domestic insurance 1614
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companies. However, the statement filed with the State Tax 1615
Commission by domestic insurance companies as provided in Section 1616
27-15-107 shall include therein a sworn statement of all 1617
additional retaliatory premium taxes paid by them to other states 1618
as a result of the increase in premium taxes imposed by Sections 1619
27-15-103 through 27-15-117, itemized by states to which paid. 1620
(3) In the event that the Mississippi Supreme Court or 1621
another court finally adjudicates that any tax levied prior to 1622
July 1, 1985, under the provisions of this section was collected 1623
unconstitutionally and that a liability for a credit or refund for 1624
such collection has accrued, then the rate of tax set forth above 1625
shall be increased to four percent (4%) for a period of six (6) 1626
years beginning July 1 following such adjudication. 1627
SECTION 42. This act shall take effect and be in force from 1628
and after July 1, 2026. 1629