2005 Regular Session
By: Representative Howell
AN ACT TO REQUIRE ALL INSURANCE COMPANIES THAT SELL POLICIES OF LIABILITY INSURANCE IN THIS STATE TO REPORT ANNUALLY TO THE INSURANCE COMMISSIONER THE TOTAL AMOUNT THAT SUCH COMPANIES PAID OUT IN LIABILITY INSURANCE CLAIMS, JUDGMENTS AND SETTLEMENTS DURING THE PREVIOUS YEAR ON BEHALF OF THEIR POLICYHOLDERS; TO PROVIDE THAT THE COMMISSIONER OF INSURANCE SHALL COMPILE THESE REPORTS AND MAKE THE REPORTS AVAILABLE FOR PUBLIC INSPECTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) The commissioner shall require each insurer licensed to write property or casualty insurance in this state to record and report its loss and expense experience and other data and to submit a report, on a form furnished by the commissioner, showing its direct writings in this state and the United States, unless an insurer, for good causes submitted in writing to the commissioner and approved by the commissioner, shall be exempted for any given year.
(2) Such report required by subsection (1) of this section shall include, but not be limited to, the following types of insurance written by such insurer:
(a) Motor vehicle bodily injury liability insurance;
(b) Products liability insurance;
(c) Medical malpractice insurance;
(d) Attorneys' malpractice insurance;
(e) Architects and engineers malpractice insurance;
(f) Motor vehicle property liability insurance;
(g) Motor vehicle medical payment insurance;
(h) Uninsured motorist insurance; and
(i) Underinsured motorist insurance.
(3) Such report shall include the following data by the type of insurance for the previous year ending on December 31:
(a) Direct premiums written;
(b) Direct premiums earned;
(c) Net investment income, including net realized capital gains and losses, using appropriate estimates where necessary;
(d) Incurred claims, developed as the sum of the following:
(i) Dollar amount of claims closed with payment including, but not limited to, the amounts paid in judgments and settlements of claims; plus
(ii) Reserves for reported claims at the end of the current year; minus
(iii) Reserves for reported claims at the end of the previous year; plus
(iv) Reserves for incurred but not reported claims at the end of the current year; minus
(v) Reserves for incurred but not reported claims at the end of the previous year; plus
(vi) Reserves for loss adjustment expense at the end of the current year; minus
(vii) Reserves for loss adjustment expense at the end of the previous year;
(e) Actual incurred expenses allocated separately to loss adjustment, commissions, other acquisition costs, advertising, general office expenses, taxes, licenses and fees, and all other expenses;
(f) Net underwriting gain or loss;
(g) Net operation gain or loss, including net investment income;
(h) The number and dollar amount of claims closed with payment, by year incurred, and the amount reserved for them;
(i) The number of claims closed without payment and the dollar amount reserved for those claims; and
(j) Any other information requested by the commissioner.
(4) The first year only in which the insurer is required to file this supplemental report, the data required by subsection (3)(a) through (g) of this section shall include the previous calendar year.
(5) It shall be the duty of the commissioner to annually compile and review all such reports submitted by insurers pursuant to subsection (2) to determine the appropriateness of premium rates for property and casualty insurance in this state. The commissioner's findings and the filings shall be published and made available to any interested insured or citizen. If the commissioner finds at any time that any rate no longer meets the standards of this chapter and as otherwise provided by law, he shall issue an order withdrawing his approval as provided in Section 83-2-11.
(6) An insurer shall not be required to record or report its experience on a classification basis inconsistent with its own rating system; provided, however, that for Workers' Compensation Insurance, all insurers shall use the classification system, rates, rules, forms and statistical plan of the rate service organization designated by the commissioner.
SECTION 2. This act shall take effect and be in force from and after July 1, 2005.