1997 Regular Session
By: Representative Wells-Smith
House Bill 1287
AN ACT TO AMEND SECTION 83-34-1, MISSISSIPPI CODE OF 1972, TO INCLUDE BUSINESS INTERRUPTION COVERAGE WITHIN THE MEANING OF ESSENTIAL PROPERTY INSURANCE AVAILABLE THROUGH THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-34-1, Mississippi Code of 1972, is amended as follows:
83-34-1. In this chapter, unless the context otherwise requires:
(a) "Essential property insurance" means insurance against direct loss to property as defined and limited in the Windstorm and Hail Insurance form approved by the commissioner and also means time element coverage for business interruption, loss of earnings and loss of rents when accompanied by such direct loss to property.
(b) "Association" means the Mississippi Windstorm Underwriting Association established under the provisions of this chapter.
(c) "Plan of operation" means the plan of operation of the association approved or promulgated by the Mississippi Insurance Commissioner pursuant to the provisions of this chapter.
(d) "Insurable property" means builder's risk and real property at fixed locations in coast areas or the contents located therein (but shall not include insurance on motor vehicles), which property is determined by the association, after inspection and pursuant to the criteria specified in the plan of operation, to be in an insurable condition; * * * however, any one- or two-family dwelling built in substantial accordance with the standard building code, including the design-wind requirements, which is not otherwise rendered uninsurable by reason of use, occupancy or state of repair, shall be an insurable risk within the meaning of this chapter; but neighborhood, area, location and environmental hazards beyond the control of the applicant or owner of the property shall not be considered in determining insurable condition. * * * Any structure begun on or after June 1, 1987, not built in substantial compliance with the standard building code, including the design-wind requirements therein, shall not be an insurable risk under the terms of this chapter.
(e) "Commissioner" means the Insurance Commissioner of the State of Mississippi.
(f) "Coast area" means Hancock, Harrison, Jackson, Pearl River, Stone and George Counties.
(g) "Net direct premiums" means gross direct premiums, excluding reinsurance assumed and ceded, written on property in this state for the windstorm and hail causes of loss or equivalent causes of loss components of property insurance policies, including the windstorm and hail causes of loss or equivalent causes of loss components of approved residential package policies and commercial multiple peril policies, less return premiums upon cancelled contracts, dividends paid or credited to policyholders or the unused or unabsorbed portion of premium deposits and excluding premiums on farm property.
SECTION 2. This act shall take effect and be in force from and after its passage.