Additional Living Expense Fairness and Expedited Closure Adjudicaiton Act; create.

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To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Turner, Ford (54th)

HOUSE BILL NO. 1721

AN ACT TO BE KNOWN AS THE "ADDITIONAL LIVING EXPENSE (ALE) 1
FAIRNESS AND EXPEDITED CLOSURE ADJUDICATION ACT"; TO DECLARE THAT 2
THE LEGISLATIVE PURPOSE OF THE ACT IS TO ESTABLISH A PROCESS 3
ADMINISTERED BY THE DEPARTMENT OF INSURANCE TO ENSURE TIMELY AND 4
SUFFICIENT ADDITIONAL LIVING EXPENSE BENEFITS ARE PAID TO INSURED 5
PARTIES UNDER RESIDENTIAL AND SMALL COMMERCIAL POLICIES; TO DEFINE 6
CERTAIN TERMS, INCLUDING "ALE"; TO GRANT THE COMMISSIONER OF 7
INSURANCE EXCLUSIVE JURISDICTION TO ADJUDICATE DISPUTES REGARDING 8
ALE MATTERS; TO AUTHORIZE INSURERS AND INSURED PARTIES TO 9
INSTITUTE A PETITION; TO REQUIRE THE EXPEDITED TIME FOR ADDRESSING 10
PETITIONS; TO AUTHORIZE THE COMMISSIONER TO ISSUE AN INTERIM ALE 11
ORDER TO PREVENT HARDSHIP; TO PRESCRIBED STANDARDS FOR 12
ADJUDICATING DISPUTES; TO GRANT THE COMMISSIONER CERTAIN POWERS IN 13
ISSUING ORDERS; TO PROVIDE THAT ORDERS SETTLING ALE DISPUTES ARE 14
BINDING UNLESS A REHEARING IS GRANTED OR THE ORDER IS APPEALED TO 15
A COURT OF COMPETENT JURISDICTION; TO AUTHORIZE THE COMMISSIONER 16
TO PROMULGATE RULES NECESSARY FOR THE ENFORCEMENT OF THIS ACT; AND 17
FOR RELATED PURPOSES. 18
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 19
SECTION 1. This act shall be known and may be cited as the 20
"Additional Living Expense Fairness and Expedited Closure 21
Adjudication Act." 22
SECTION 2. The purposes of this act are to: 23
(a) Ensure timely and sufficient ALE, as defined in 24
Section 3 of this act, for displaced insureds following covered 25
property losses; 26
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(b) Prevent avoidable delays that prolong displacement 27
and obstruct claim closure; 28
(c) Create a uniform, fast and fair adjudication 29
process administered by the Department of Insurance; and 30
(d) Provide balanced protections to both insureds and 31
insurers, including reasonable documentation standards, mitigation 32
obligations, and prompt resolution of disputes. 33
SECTION 3. As used in this act, the following words and 34
phrases have the meanings provided in this section unless the 35
context clearly requires otherwise: 36
(a) "ALE" means additional living expense or loss of 37
use benefits under a residential or small commercial property 38
policy, including reasonable increased living expenses or fair 39
rental value as provided by the policy. 40
(b) "Commissioner" means the Commissioner of Insurance, 41
or the commissioner's designated hearing officer or administrative 42
law judge. 43
(c) "Covered loss" means a loss for which coverage is 44
accepted in whole or in part, or for which coverage is reasonably 45
in dispute but not denied with specificity in writing. 46
(d) "Department" means the Department of Insurance. 47
(e) "Displacement" means the insured premises is 48
uninhabitable, unsafe or inaccessible due to a covered loss. 49
(f) "Petition" means a petition for ALE adjudication 50
and expedited closure filed under this act. 51
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SECTION 4. (1) Notwithstanding any other provision of law, 52
the commissioner has exclusive original jurisdiction to adjudicate 53
disputes concerning: 54
(a) ALE eligibility due to displacement; 55
(b) ALE sufficiency relating to amount, budget, 56
reasonableness of housing and related costs; 57
(c) ALE payment timing and whether undisputed or 58
minimum amounts must be advanced pending final resolution; 59
(d) Disputes over documentation requirements that 60
materially delay ALE; and 61
(e) Claim-closure delays where ALE is a material driver 62
of non-closure. 63
(2) A party may not file or maintain a civil action seeking 64
judicial determination of the matters listed in subsection (1) of 65
this section unless that party has first exhausted the 66
adjudication process under this act; however, this act does not 67
limit a court's authority to enforce a final department order 68
after exhaustion. Further, this act does not bar civil actions on 69
other claim issues not within subsection (1), except that the 70
court shall stay ALE issues pending completion of the 71
administrative adjudication. 72
SECTION 5. (1) The insured or the insurer may file a 73
petition. 74
(2) A petition may be filed upon any of the following: 75
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(a) The insured asserts displacement and requests ALE, 76
and the insurer fails to make a provisional ALE determination 77
within three (3) business days; 78
(b) The insurer fails to tender undisputed ALE within 79
five (5) business days after receiving information reasonably 80
sufficient to calculate such undisputed amount; 81
(c) A dispute exists regarding the reasonableness of 82
temporary housing, household needs, duration or categories of ALE; 83
(d) The insurer conditions ALE payment on documentation 84
that is not reasonably available in the circumstances; or 85
(e) The claim has not closed and ALE issues materially 86
contribute to delay for thirty (30) days after displacement 87
begins. 88
SECTION 6. (1) The department shall docket a petition 89
within two (2) business days of receipt. 90
(2) The commissioner shall hold an informal conference, 91
either telephonic or virtual, within seven (7) business days after 92
docketing. 93
(3) The commissioner shall issue a written order within five 94
(5) business days after the conference, unless extended for good 95
cause stated in writing. 96
(4) The department shall maintain an administrative record 97
sufficient for judicial review. 98
SECTION 7. (1) The commissioner may issue an interim ALE 99
order to prevent hardship or avoid displacement interruption. 100
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(2) Upon a showing that displacement is more likely than not 101
or is undisputed, in whole or in part, due to a covered loss, the 102
commissioner shall order the insurer to tender minimum immediate 103
ALE funding sufficient to avoid interruption of shelter and 104
essential needs while the dispute is pending. In setting minimum 105
funding, the commissioner shall consider: 106
(a) Local market rental and hotel rates reasonably 107
comparable for household size and needs; 108
(b) Displacement conditions and availability 109
constraints; 110
(c) The insured's duty to mitigate and choose 111
reasonable alternatives when feasible; and 112
(d) The policy's ALE limit and remaining available 113
benefits. 114
(3) At the insured's request, the commissioner may order 115
direct payment to vendors such as a landlord, hotel or storage 116
facility where doing so materially prevents displacement 117
interruption. 118
SECTION 8. In adjudicating ALE and closure disputes, the 119
commissioner shall apply the policy terms and the following 120
standards: 121
(a) Reasonableness and necessity. ALE must be allowed 122
when reasonable and necessary to maintain a reasonably normal 123
standard of living during displacement, consistent with the 124
policy. 125
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(b) Documentation — best available standard. For the 126
first sixty (60) days after displacement begins, the insured may 127
satisfy documentation through best available evidence, including 128
attestation under penalty of perjury, vendor quotes, listings, 129
confirmations and partial receipts. The insurer may request 130
additional documentation thereafter, but must make such requests 131
specific, consolidated and reasonable. 132
(c) Undisputed amounts. The insurer shall pay 133
undisputed ALE immediately, even if other components remain 134
disputed. 135
(d) Insured cooperation. The insured shall cooperate 136
reasonably, provide truthful information, and promptly supplement 137
documentation as available. 138
(e) Mitigation. The insured must take reasonable steps 139
to mitigate ALE, and the insurer must timely provide workable 140
options, including direct pay, when offered as a condition of 141
mitigation. 142
SECTION 9. The commissioner may issue any order necessary to 143
ensure fair ALE handling and to expedite closure, including: 144
(a) Ordering payment of undisputed ALE by a date 145
certain; 146
(b) Establishing a biweekly or monthly ALE payment 147
schedule during displacement; 148
(c) Setting a binding ALE budget or rate parameters for 149
temporary housing; 150
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(d) Resolving disputes over household size needs, 151
special needs accommodations, pets where reasonably necessary, 152
storage, and related categories covered by the policy; 153
(e) Requiring production of relevant non-privileged 154
claim materials directly bearing on ALE calculation and delay, 155
including worksheets, vendor program rules, and communications; 156
(f) Setting deadlines for remaining proofs and insurer 157
responses; and 158
(g) Issuing a closure order requiring specified actions 159
to bring the ALE portion of the claim to closure and to remove ALE 160
as an impediment to overall claim closure. 161
SECTION 10. (1) An order issued under this act is binding 162
on the parties unless modified on rehearing or stayed by a court 163
under Section 11 of this act. 164
(2) Failure to comply with an order constitutes an unfair 165
claims practice subject to administrative penalties under the 166
commissioner's existing enforcement authority. 167
(3) Past-due ordered payments accrue interest at a rate to 168
be specified by the commissioner from the date due. 169
(4) If the commissioner finds an insurer or insured 170
willfully failed to comply with an order or acted to obstruct the 171
expedited process without substantial justification, the 172
commissioner may award the other party reasonable attorney's fees 173
and costs incurred in the administrative proceeding. 174
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ST: Additional Living Expense Fairness and
Expedited Closure Adjudicaiton Act; create.
SECTION 11. (1) A party may move for a rehearing within ten 175
(10) days of an order, stating specific grounds. The commissioner 176
shall rule of the party's motion no later than ten (10) days after 177
its receipt. 178
(2) A final order is subject to judicial review under 179
Mississippi administrative procedure principles in the appropriate 180
court. 181
(3) Filing for judicial review does not automatically stay 182
the portion of an order requiring payment of: 183
(a) Undisputed ALE; or 184
(b) Minimum immediate ALE funding necessary to prevent 185
displacement interruption, unless the reviewing court expressly 186
grants a stay upon a showing of irreparable harm and likelihood of 187
success. 188
SECTION 12. The commissioner may promulgate rules, forms and 189
procedures necessary to implement this act, including 190
standardized: 191
(a) ALE displacement attestations; 192
(b) ALE worksheets and budget formats; and 193
(c) Petition and expedited conference procedures. 194
SECTION 13. If any provision of this act is held invalid, 195
the remaining provisions shall not be affected. 196
SECTION 14. This act shall take effect and be in force from 197
and after July 1, 2026. 198