MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Insurance
By: Representatives Chism, Miles
AN ACT TO AMEND SECTIONS 25-15-405, 25-15-407 AND 25-15-409, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR PAYMENTS FOR BENEFITS AND INSURANCE PREMIUMS UNDER THE MISSISSIPPI FIRST RESPONDERS HEALTH AND SAFETY ACT; TO CREATE THE MISSISSIPPI FIRST RESPONDERS HEALTH AND SAFETY TRUST FUND; TO AMEND SECTION 83-34-4, MISSISSIPPI CODE OF 1972, TO ANNUALLY DIVERT FORTY PERCENT OF THE NONADMITTED POLICY FEE TO FUND THE RURAL FIRE TRUCK AND SUPPLEMENTAL FUND, THE MISSISSIPPI FIRST RESPONDERS HEALTH AND SAFETY FUND, THE COMPREHENSIVE HURRICANE MITIGATION FUND AND TO PROVIDE FUNDS TO THE FIRE MARSHAL'S OFFICE FOR FIRE PREVENTION AND EDUCATION, FOR FIRE APPARATUS GRANTS AND FIRE PROTECTION GRANTS; TO DELETE THE REPEALER ON THE SECTION OF LAW; TO AMEND SECTION 83-34-7, MISSISSIPPI CODE OF 1972, TO REVISE THE BOARD OF DIRECTORS OF THE MISSISSIPPI INSURANCE UNDERWRITING ASSOCIATION; TO MAKE THE STATE TREASURER A NONVOTING MEMBER; TO ADD THE SECRETARY OF STATE AS A MEMBER OF THE BOARD; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 25-15-405, Mississippi Code of 1972, is amended as follows:
25-15-405. (1) As an alternative to pursuing workers' compensation benefits, upon a diagnosis of cancer, a first responder is entitled to the following benefits:
(a) Provided the diagnosis occurs on or after the first responder's effective date of coverage, a lump-sum benefit of Thirty-five Thousand Dollars ($35,000.00) of coverage for each diagnosis payable to the first responder upon acceptable proof to the insurance carrier or other payor of a diagnosis by a board-certified physician in the medical specialty appropriate for the type of cancer diagnosed that the cancer was caused by an occupational hazard and that there are one or more malignant tumors characterized by the uncontrollable and abnormal growth and spread of malignant cells with invasion of normal tissue and that either:
(i) There is metastasis, and surgery, radiotherapy or chemotherapy is medically necessary;
(ii) There is a tumor of the prostate, provided that it is treated with radical prostatectomy or external beam therapy; or
(iii) The first responder has terminal cancer, his or her life expectancy is twenty-four (24) months or less from the date of diagnosis, and will not benefit from, or has exhausted, curative therapy.
(b) Provided the diagnosis occurs on or after the first responder's effective date of coverage, a lump-sum benefit of Six Thousand Two Hundred Fifty Dollars ($6,250.00) for each diagnosis payable to the first responder upon acceptable proof to the insurance carrier or other payor of a diagnosis by a board-certified physician in the medical specialty appropriate for the type of cancer involved that:
(i) There is carcinoma in situ such that surgery, radiotherapy or chemotherapy has been determined to be medically necessary;
(ii) There are malignant tumors which are treated by endoscopic procedures alone; or
(iii) There are malignant melanomas.
(c) The combined total of benefits received by any first responder under paragraphs (a) and (b) of this subsection (1) during his or her lifetime shall not exceed Fifty Thousand Dollars ($50,000.00).
(d) Provided the date of disability occurs on or after the first responder's effective date of coverage, a disability benefit payable as a result of a specific cancer to begin six (6) months after the date of disability and submission to the insurance carrier or other payor of acceptable proof of disability caused by the specified disease or events such that the illness precludes the first responder from serving as a first responder:
(i) For nonvolunteer first responders, a monthly benefit equal to sixty percent (60%) of the first responder's monthly salary as an employed first responder with a fire or police department or a monthly benefit of Five Thousand Dollars ($5,000.00), whichever is less, of which the first payment shall be made six (6) months after the total disability and shall continue for thirty-six (36) consecutive monthly payments unless the first responder regains the ability to perform his or her duties as determined by reevaluation under subparagraph (iv) of this paragraph, at which time the payments shall cease the last day of the month of reevaluation;
(ii) For volunteer firefighters, a monthly benefit of One Thousand Five Hundred Dollars ($1,500.00) of which the first payment shall be made six (6) months after the total disability and shall continue for thirty-six (36) consecutive monthly payments unless the first responder regains the ability to perform his or her duties as determined by reevaluation under subparagraph (iv) of this paragraph, at which time the payments shall cease the last day of the month of reevaluation;
(iii) Such monthly benefit shall be subordinate to any other benefit actually paid to the first responder solely for such disability from any other source, not including private insurance purchased solely by the first responder;
(iv) Any first responder receiving the monthly benefits may be required to have his or her condition reevaluated. In the event any such reevaluation reveals that such person has regained the ability to perform duties as a first responder, then his or her monthly benefits shall cease the last day of the month of reevaluation; and
(v) In the event that there is a subsequent recurrence of a disability caused by a specified cancer, which precludes the first responder from serving as a first responder, he or she shall be entitled to receive any remaining monthly payments.
(e) An eligible first responder who dies as a result of a compensable type of cancer, or circumstances arising out of the treatment of a compensable type of cancer, but does not submit sufficient proof of claim prior to the first responder's death, is entitled to receive benefits specified in paragraphs (a) and (b) of this subsection (1) and made available to the deceased first responder's beneficiary or beneficiaries.
(f) Any first responder who was simultaneously a member of more than one (1) fire or police department at the time of diagnosis shall not be entitled to receive benefits from or on behalf of more than one (1) fire or police department. The first responder's primary place of employment shall maintain coverage for the eligible first responder; and
(g) An otherwise eligible first responder shall be precluded from the benefits listed under this section if he or she has filed for workers' compensation for the same diagnosis of cancer.
(2) Benefits under this section may be paid from the Mississippi First Responders Health and Safety Trust Fund.
SECTION 2. Section 25-15-407, Mississippi Code of 1972, is amended as follows:
25-15-407. (1) The costs of purchasing an insurance policy that provides for cancer coverage in compliance with this article, or the costs of providing such benefits through a self-funded system in compliance with this article, must be borne solely by the employer that employs the eligible first responder and may not be funded partially or wholly by individual first responders. In addition to any other purpose authorized, county governing authorities and municipal governing authorities may use proceeds from county and municipal taxes for the purposes of providing insurance in compliance with this article. The computation of premium amounts by an insurer for the coverage under this article shall be subject to generally accepted adjustments from insurance underwriting.
(2) Benefits under this section may be paid from the Mississippi First Responders Health and Safety Trust Fund.
SECTION 3. Section 25-15-409, Mississippi Code of 1972, is amended as follows:
25-15-409. (1) The state,
municipality, county or fire protection district shall, no later than January
1, 2022, show proof of insurance coverage that meets the requirements of this
article to the * * * Commissioner of Insurance, or shall show satisfactory
proof of the ability to pay such compensation to ensure adequate coverage for
all eligible first responders.
(2) The * * * Commissioner of Insurance
shall adopt such rules and regulations as are reasonable and necessary to
implement the provisions of this article. Such regulations shall include the
process by which a first responder files a claim for cancer * * *, the process by which claimants can
appeal a denial of benefits and the process by which the state,
municipality, county or fire protection district may request funds from the
Mississippi First Responders Health and Safety Trust Fund to pay insurance
premiums or benefits as provided under this chapter.
(3) The * * * Commissioner of Insurance
shall adopt rules to establish firefighter cancer prevention best practices as
it relates to personal protective equipment, decontamination, fire suppression,
apparatus and fire stations.
SECTION 4. (1) There is created in the State Treasury a special fund to be designated as the "Mississippi First Responders Health and Safety Trust Fund." This fund shall be funded through funds provided to it through the provisions of Section 83-34-4(3), and any monies which may be appropriated to it by the Legislature. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.
SECTION 5. Section 83-34-4, Mississippi Code of 1972, is amended as follows:
83-34-4. (1) Nonadmitted
insurers shall not be assessable insurers of the association. All surplus
lines insurance producers placing insurance through nonadmitted insurers shall
collect from the insured and remit * * *, as directed in
subsection (3) below, a nonadmitted policy fee on all premiums for all
insurance written by such surplus lines insurance producer for a policy from a
nonadmitted insurer for any and all risks in this state, except that
policies or portions thereof that cover residential earthquake risks or
residential flood risks that are not written through the National Flood Insurance
Program shall be exempt from the nonadmitted policy fee. By procuring or
selling insurance on property in this state from a nonadmitted insurer, each
surplus lines insurance producer placing insurance through a nonadmitted
insurer agrees to be bound by the provisions of this chapter and to collect and
remit the nonadmitted policy fee provided for herein.
(2) The nonadmitted policy fee shall be a percentage of the total policy premium but the nonadmitted policy fee shall not be considered premium and is not subject to premium taxes or commissions. However, failure to pay the nonadmitted policy fee shall be treated the same as failure to pay premium. "Total policy premium" includes taxes and commissions.
(3) The nonadmitted policy fee percentage shall be three percent (3%). The monies derived under this section shall be paid to a fund administered by the commissioner. Sixty percent (60%) of such funds shall be paid quarterly by the commissioner to the association for use in the manner prescribed in subsection (6) of this section and shall not be considered public funds; and forty percent (40%) of such funds shall be expended by the commissioner in the following manner:
(a) Sixty percent (60%) of the forty percent (40%) shall be paid to the Rural Fire Truck Fund or Supplementary Rural Fire Truck Fund;
(b) Twenty percent (20%) of the forty percent (40%) shall be paid to the State Fire Marshal's Office to be used for fire prevention and education, fire apparatus grants and fire protection grants;
(c) Ten percent (10%) of the forty percent (40%) shall be paid to the Mississippi First Responders Health and Safety Trust Fund; and
(d) Ten percent (10%) of the forty percent (40%) shall be paid to the Comprehensive Hurricane Damage Mitigation Program.
Any monies provided under paragraphs (a), (b) and (d) that are not expended by the commissioner by the end of the fiscal year may be reappropriated by the Legislature.
(4) Within twenty (20) days
of the end of the quarter, surplus lines insurance producers placing insurance
through nonadmitted insurers shall remit directly to the * * * commissioner all nonadmitted
policy fees collected in the preceding quarter. In addition to the nonadmitted
policy fee provided for herein, surplus lines insurance producers placing
insurance through nonadmitted insurers shall collect and remit excess deficit
surcharges as provided by this chapter. Surplus lines insurance producers
placing insurance through nonadmitted insurers may designate another surplus
lines insurance producer that actually procured the insurance from the
nonadmitted carrier to collect and remit the nonadmitted policy fees.
(5) Each insured in this state who directly procures or renews insurance with a nonadmitted insurer on properties, risks or exposures located or to be performed, in whole or in part, in this state, other than insurance procured through a surplus lines licensee, shall be subject to the nonadmitted policy fee which shall be paid by the insured according to the procedures provided for premium taxes in Section 83-21-17(5).
(6) Monies derived
from the nonadmitted policy fee collected under this section 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 * * *.
(7) * * * The commissioner may establish rules and regulations to
implement the provisions of this section.
SECTION 6. Section 83-34-7, Mississippi Code of 1972, is amended as follows:
83-34-7. (1) The Board of Directors of the Mississippi Insurance Underwriting Association as presently constituted shall serve as the temporary board of directors of the association. Such temporary board of directors shall prepare and submit a plan of operation in accordance with Section 83-34-13 and shall serve until the permanent board of directors shall take office in accordance with the plan of operation. The permanent board shall consist of five (5) representatives of the members to be appointed by the temporary board of directors subject to the approval of the commissioner and three (3) agents from the coast area to be appointed by the commissioner. The terms of the members of the board of directors in place before March 22, 2007, shall expire on March 22, 2007, and such persons shall cease to serve on the board and shall relinquish all power and control of the association.
(2) (a) From and after March 22, 2007, the board of directors of the association shall consist of the following:
(i) The State Treasurer, as a nonvoting member;
(ii) The Secretary of State;
( * * *iii) Five (5) of the assessable
insurer companies, three (3) to be appointed by the commissioner, one (1) to be
appointed by the Governor, and one (1) to be appointed by the Lieutenant
Governor; each such assessable insurer appointed shall designate a
representative knowledgeable in the matters of the association and authorize
such representative to act and vote on its behalf;
( * * *iv) Three (3) agents with no less
than ten (10) years' experience in the property and casualty industry, two (2)
of whom are residents in the coast area, and one (1) of whom is not a resident
of the coast area; one (1) such coast area agent to be appointed by the
Governor, one (1) such coast area agent to be appointed by the Lieutenant
Governor, and the noncoast area agent to be appointed by the commissioner; and
( * * *v) Two (2) business leaders who have
been residents of the coast area for no less than ten (10) years and who have
no less than ten (10) years' experience in management of a business, one (1) to
be appointed by the Governor, and one (1) to be appointed by the Lieutenant
Governor.
(b) Except for the State Treasurer and the Secretary of State, the board members shall serve three-year terms with each term beginning on January 1, and the initial terms shall be staggered in the following manner:
(i) The initial term for three (3) of the assessable insurers shall begin on March 22, 2007, and expire on December 31, 2010, thereafter to be appointed for three-year terms;
(ii) The initial term for one (1) of the assessable insurers shall begin on March 22, 2007, and expire on December 31, 2009, thereafter to be appointed for three-year terms;
(iii) The initial term for one (1) of the assessable insurers shall begin on March 22, 2007, and expire on December 31, 2008, thereafter to be appointed for three-year terms;
(iv) The initial term for one (1) of the agents shall begin on March 22, 2007, and expire on December 31, 2010, thereafter to be appointed for three-year terms;
(v) The initial term for one (1) of the agents shall begin on March 22, 2007, and expire on December 31, 2009, thereafter to be appointed for three-year terms;
(vi) The initial term for one (1) of the agents shall begin on March 22, 2007, and expire on December 31, 2008, thereafter to be appointed for three-year terms;
(vii) The initial term for one (1) of the business leaders shall begin on March 22, 2007, and expire on December 31, 2010, thereafter to be appointed for three-year terms;
(viii) The initial term for one (1) of the business leaders shall begin on March 22, 2007, and expire on December 31, 2008, thereafter to be appointed for three-year terms.
(3) On or before March 22, 2007, the appropriate public official shall make such appointments and request such resignations from the existing board as are appropriate to comply with this section.
(4) The board shall be staffed by as many employees as it deems necessary.
(5) The board of directors has the power to act and make binding decisions on behalf of the association on all issues.
SECTION 7. This act shall take effect and be in force from and after July 1, 2020.