2007 Regular Session
To: Insurance; Judiciary A
By: Representative Holland
AN ACT TO SET FORTH THE "MISSISSIPPI TRUTH IN INSURANCE BILL OF RIGHTS FOR INSURED CITIZENS"; TO CREATE A NEW CODE SECTION REQUIRING CERTAIN INSURANCE COMPANIES TO PROVIDE TO A POLICYHOLDER A COPY OF THE ENTIRE CONTENTS OF THE INSURANCE COMPANY'S FILE PERTAINING TO THE POLICYHOLDER'S CLAIM, TO THE EXTENT THAT SUCH CONTENTS ARE NOT PRIVILEGED UNDER LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following rights shall be known as the "Mississippi Truth in Insurance Bill of Rights for Insured Citizens," and such rights shall apply to the contractual agreement between a policyholder and the insurance company providing the policy with regard to every policy providing residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage, that is sold in this state:
(a) Policyholders shall have the right to competitive pricing practices and marketing methods that enable them to determine the best value among comparable coverage.
(b) Policyholders shall have the right to insurance advertising and other selling approaches that provide accurate and balanced information on the benefits and limitations of a policy.
(c) Policyholders shall have the right to an insurance company that is financially stable.
(d) Policyholders shall have the right to be serviced by a competent, honest insurance producer.
(e) Policyholders shall have the right to a readable policy.
(f) Policyholders shall have the right to an insurance company that provides an economic delivery of coverage and that tries to prevent losses.
(g) Policyholders shall have the right to request from the Mississippi Department of Insurance the license status of an insurance company or producer.
(h) Policyholders shall have the right to receive in writing from their insurance company the reason for any denial or nonrenewal of coverage. The written statement from the insurance company must provide an adequate explanation for the denial or nonrenewal of coverage.
(i) Policyholders shall have the right to cancel their policy and receive a refund of any unearned premium. If a policy was funded by a premium finance company, the unearned premium will be returned to the premium finance company to pay toward the policyholder’s financing loan.
(j) Policyholders shall have the right to a written notification detailing any change in coverage at renewal.
(k) Policyholders shall have the right to receive a written explanation of why a claim is denied in whole or in part.
(l) Policyholders shall have the right to request and receive from the insurance company any adjusters' reports, engineer reports, contractor reports, statements or documents which are not privileged documents that the insurance company prepared, had prepared, or used during its adjustment of the policyholder’s claim.
(m) Policyholders shall have the right to file a written complaint against any insurance company or insurance producer with the Mississippi Department of Insurance, and to have that complaint investigated by the department.
SECTION 2. Before the commencement of any civil action based on a claim under an insurance policy providing residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage, upon the request of the policyholder, the insurance company shall provide, within twenty (20) business days, the policyholder with a copy of the entire contents of the insurance company's file pertaining to the policyholder's claim to the extent that such contents are not privileged under law, including, but not limited to, the following: any reports of adjusters, engineers, contractors or others, any statements, letters or documents (whether in paper, electronic or magnetic form) and any other information pertaining to the claim, that the insurance company prepared or used, or had prepared on its behalf, during the company's adjustment of the policyholder's claim under the policy.
SECTION 3. This act shall take effect and be in force from and after July 1, 2007.