SB 2856 — Windstorm Underwriting Association; revise various provisions relating to.

Bill Text

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The bill requires that revenues from the nonadmitted policy fee be deposited into the State General Fund and modifies provisions regarding the Windstorm Underwriting Association.

• Section 83-34-4

  may be used by the association, in addition to any uses provided for in Section 83‑34‑3(4), for education, public outreach, training of building officials and other programs targeted to reduce the number of policies within the association → shall be deposited into the State General Fund

  This change mandates that nonadmitted policy fee revenues go directly to the State General Fund.

• Section 83-34-5

  To employ an executive director;

  This grants the Windstorm Underwriting Association the authority to hire an executive director.

• Section 83-34-35

  a storm expected to occur every one hundred (100) years → a storm expected to occur every one hundred fifty (150) years

  This amendment changes the reinsurance threshold from once every 100 years to once every 150 years.

• Section 83-34-35

  The association must receive approval from the commissioner before purchasing reinsurance in excess of the amount to cover the probable maximum loss for a storm expected to occur every one hundred fifty (150) years.

  This requires the Windstorm Underwriting Association to seek approval before acquiring excessive reinsurance.

• Section 83-34-35

  Any purchase of reinsurance by the association shall include at a minimum a self-insured retention of One Hundred Million Dollars ($100,000,000.00).

  This sets a minimum self-insured retention amount for any reinsurance purchase.

• Section 83-21-21

  The Commissioner of Insurance may establish a stamping procedure for all eligible nonadmitted/surplus lines insurance policies sold on risks subject to the payment of premium taxes to the State of Mississippi.

  This gives the Commissioner of Insurance the power to create a stamping procedure for nonadmitted policies.

• Section 83-21-21

  The Commissioner of Insurance may examine the association's records concerning the functions or duties performed on behalf of the commissioner by the association.

  This allows the Commissioner to review the association's records for compliance and oversight.

• Section 83-21-21

  A surplus lines insurance producer shall cooperate with the association and the Commissioner of Insurance in fulfilling the surplus lines agent's statutory responsibility under this chapter and Section 83-34-4.

  This establishes a cooperative obligation for surplus lines insurance producers with the association and commissioner.

Action History

1. January 30, 2018

   Died In Committee

2. January 15, 2018

   Referred To Finance

Sponsors

• Clarke · Primary

Subjects