2007 Regular Session
By: Representative Formby
AN ACT TO AMEND SECTIONS 83-34-5 AND 83-34-13, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION TO ESTABLISH GEOGRAPHICAL ZONES OF COVERAGE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-34-5, Mississippi Code of 1972, is amended as follows:
83-34-5. The association shall, pursuant to the provisions of this chapter and the plan of operation, and with respect to essential property insurance on insurable property, have the power on behalf of its members:
(a) To cause to be issued, or issue, policies of insurance to applicants;
(b) To assume reinsurance from its members; and
(c) To cede reinsurance to its members and to purchase reinsurance in behalf of its members; and
(d) To establish geographical zones of coverage within the coast area.
SECTION 2. Section 83-34-13, Mississippi Code of 1972, is amended as follows:
83-34-13. Within forty-five (45) days after the passage of this chapter, the directors of the association shall submit to the commissioner for review and approval a proposed plan of operation. Such proposed plan shall set forth the number, qualifications, terms of office, and manner of election of the members of the board of directors; shall grant proper credit annually to each member of the association for essential property insurance voluntarily written in the coast area; and shall provide for the efficient, economical, fair and nondiscriminatory administration of the association. Such proposed plan may include a preliminary assessment of all members for initial expenses necessary to the commencement of operation, the establishment of necessary facilities, management of the association, plans for the assessment of members to defray losses and expenses, underwriting standards, the establishment of geographical zones of coverage within the coast area, procedures for the acceptance and cession of reinsurance, procedures for determining the amounts of insurance to be provided to specific risks, time limits and procedures for processing applications for insurance, and for such other provisions as may be deemed necessary by the commissioner to carry out the purposes of this chapter.
The proposed plan shall be reviewed by the commissioner and approved if he finds that such plan fulfills the purposes provided by Section 1 of Chapter 459, Laws 1987 [See Editor's Note following Section 83-34-1]. In the review of the proposed plan, the commissioner, in his discretion, may consult with the directors of the association and may seek any further information which it deems necessary for a decision. If the commissioner approves the proposed plan, he shall certify such approval to the directors, and the plan shall become effective ten (10) days after such certification. If the commissioner disapproves all or any part of the proposed plan of operation, he shall return the same to the directors with a written statement giving the reasons for disapproval and any recommendations the commissioner may wish to make. The directors may alter the plan in accordance with the commissioner's recommendation or may, within thirty (30) days from the date of disapproval, return a new plan to the commissioner. Should the directors fail to submit a proposed plan of operation within forty-five (45) days following passage of this chapter, or a new plan which is acceptable to the commissioner, or accept the recommendation of the commissioner within thirty (30) days after disapproval of the plan, the commissioner shall promulgate and place into effect a plan of operation certifying the same to the directors of the association. Any such plan promulgated by the commissioner shall take effect ten (10) days after certification to the directors.
The directors of the association may, subject to the approval of the commissioner, amend the plan of operation at any time. The commissioner may review the plan of operation at any time he deems expedient or prudent. After review of such plan, the commissioner may amend the plan after consultation with the directors of the association and upon certification to the directors of such amendment.
SECTION 3. This act shall take effect and be in force from and after July 1, 2007.