Adopted

 

COMMITTEE AMENDMENT NO 1 PROPOSED TO

 

House Bill No.  451

 

BY: Committee

 

     Amend by striking all after the enacting clause and inserting in lieu thereof the following:

 

     SECTION 1.  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 to the association 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%).

     (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 association 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; however, beginning on July 1, * * * 2018, and ending on June 30, 2019, before any fees are remitted to the association, One Million Five Hundred Thousand Dollars ($1,500,000.00) shall be diverted and deposited into the Capital Expense Fund, and Four Million Five Hundred Thousand Dollars ($4,500,000.00) shall be diverted and deposited into the Rural Fire Truck Fund or Supplementary Rural Fire Truck Fund.  Further, beginning July 1, 2019, and ending on June 30, 2020, before any fees are remitted to the association, Three Million Five Hundred Thousand Dollars ($3,500,000.00) shall be diverted and deposited into the Rural Fire Truck Fund or Supplementary Rural Fire Truck Fund. 2022, and annually thereafter, the monies shall be distributed in the following manner:

     (a)  Eight Million Dollars ($8,000,000.00) shall be remitted to the association and shall not be considered public funds; and

     (b)  The remainder shall be remitted to the State General Fund.

     (7)  The association is authorized to use excess funds to purchase reinsurance in an amount that may exceed the total premiums collected from policyholders.

     ( * * *78)  This section shall stand repealed from and after July 1, * * *2022 2026.

     Further, amend by striking the title in its entirety and inserting in lieu thereof the following:

 

     AN ACT TO AMEND SECTION 83-34-4, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR AN ANNUAL DIVERSION OF THE NONADMITTED POLICY FEE TO THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION AND TO THE STATE GENERAL FUND; TO AUTHORIZE THE ASSOCIATION TO USE EXCESS FUNDS TO PURCHASE REINSURANCE IN AN AMOUNT THAT MAY EXCEED THE TOTAL PREMIUMS COLLECTED FROM POLICYHOLDERS; AND FOR RELATED PURPOSES.