MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Insurance; Appropriations C
By: Representative Ford (54th)
AN ACT TO CREATE THE "MAKE MISSISSIPPI RESILIENT AND STRONG ACT"; TO ESTABLISH THE MISSISSIPPI WINDSTORM MITIGATION ASSOCIATION TO PROVIDE SERVICES TO PROMOTE WELFARE AND ECONOMIC DEVELOPMENT THROUGH STRENGTHENING OF RESIDENTIAL HOMES AND COMMERCIAL PROPERTIES TO PROTECT AGAINST SEVERE WEATHER; TO PROVIDE FOR GRANTS TO ASSIST IN STRENGTHENING OF RESIDENTIAL HOMES AND COMMERCIAL PROPERTIES; TO PROVIDE FOR MEMBERSHIP OF THE ASSOCIATION; TO PROVIDE ANNUAL REPORTING REQUIREMENTS OF THE ASSOCIATION; TO PROVIDE FOR THE SUPERVISION OF THE ASSOCIATION BY THE COMMISSIONER OF INSURANCE; TO PROVIDE FOR ELECTION OF A BOARD OF DIRECTORS; TO PROVIDE THE POWERS OF THE ASSOCIATION; TO PROVIDE FOR ASSESSMENTS AGAINST INSURERS TO FUND THE ASSOCIATION; TO PROVIDE THAT A MEMBER INSURER MAY OFFSET ITS ASSESSMENT AGAINST ITS PREMIUM, FRANCHISE OR INCOME TAX LIABILITY; TO PROVIDE THAT MEMBER INSURERS SHALL BE IMMUNE FROM ACTS OR OMISSIONS IN THE PERFORMANCE OF THEIR DUTIES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Make Mississippi Resilient and Strong Act."
SECTION 2. (1) The purpose of this act is to promote the state's welfare and economic development through the strengthening of residential homes and commercial properties to protect against severe weather and to establish a mechanism to allow the availability of a grant program to encourage single-family, site-built, owner-occupied, residential property owners or commercial property owners to retrofit their properties to make them less vulnerable to hurricane, tornado or other catastrophic windstorm events.
(2) To provide this resiliency and economic protection, an association of member insurers is created to make, subject to certain limitations, financial grants to retrofit insurable property to standards adopted by the association.
SECTION 3. (1) Any person who owns insurable property located in this state may apply to the association for a grant to retrofit such insurable property.
(2) To obtain grant funds, insurable property shall be retrofitted to one of the tiered mitigation levels as defined by the Insurance Institute for Business and Home Safety, or other mitigation program, or construction technique, that is recommended by the Mississippi Windstorm Mitigation Coordinating Council and approved by the association and the commissioner. An insurable property shall be certified as conforming to the most recent version of the "fortified roof" standard of the Insurance Institute for Business and Home Safety only after evaluation and certification by an Insurance Institute for Business and Home Safety certified evaluator.
(3) Total grants awarded for any insurable property shall not exceed Fifteen Thousand Dollars ($15,000.00).
SECTION 4. As used in this act, the following terms shall have the meaning ascribed in this section, unless the context clearly requires otherwise:
(a) "Applicant" means any person who submits an application for a grant award from the association.
(b) "Association" means the Mississippi Windstorm Mitigation Association.
(c) "Board" means the board of directors of the association.
(d) "Commissioner" means the Commissioner of Insurance of this state.
(e) "Insurable property" includes single-family residential and commercial property. "Insurance property" also includes modular homes satisfying the codes, standards or techniques as provided in Section 83-75-1 or 83-75-3. Manufactured homes are excluded from "insurable property," except as expressly provided in Section 83-75-3(3).
(f) "Insurance Institute for Business and Home Safety" means the non-profit scientific research and communications organization supported by property insurers, reinsurers and affiliated companies.
(g) "Member insurer" means any entity that is authorized in this state to write property insurance coverage or provides property insurance coverage in this state including nonadmitted insurers eligible for writing business in this state or writing business in this state.
(h) "Person" means a natural person, trust, partnership, corporation, limited liability company or any other business entity.
(i) "Premiums" mean amounts or considerations (by whatever name called) received on property insurance policies less returned premiums thereon and dividends paid or credited to policyholders on such business.
(j) "Property insurance" means the following lines of coverage as reported on the National Association of Insurance Commissioners Annual Statement blank for fire, allied lines, homeowners, commercial multi property non-liability and earthquake insurance.
(k) "Retrofit" means to make changes to an existing building to resist loss due to hurricane, tornado or other catastrophic windstorm events.
SECTION 5. (1) There is created a nonprofit legal entity to be known as the Mississippi Windstorm Mitigation Association. All member insurers shall be and remain members of the association, as a condition of their authority to transact insurance business in this state. The association shall perform its functions under a plan of operation established and approved under Section 10 of this act and shall exercise its powers through a board of directors established under Section 6 of this act.
(2) The association shall come under the immediate supervision of the commissioner and shall be subject to the applicable provisions of the insurance laws of this state. Meetings or records of the association may be opened to the public upon majority vote of the board of directors of the association.
SECTION 6. (1) The board of directors of the association shall consist of not less than five (5) nor more than nine (9) member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members, subject to the approval of the commissioner. To select the initial board of directors, and initially organize the association, the commissioner shall give notice to all member insurers of the time and place of the organizational meeting. At the organizational meeting each member insurer shall be entitled to one (1) vote in person or by proxy. If the board of directors is not selected within sixty (60) days after notice of the organizational meeting, the commissioner may appoint the initial board of directors.
(2) In approving selections or in appointing members to the board, the commission shall consider, among other things, whether all member insurers are fairly represented.
(3) Members of the board may be reimbursed from the assets of the association for actual and necessary expenses incurred by them as members of the board of directors but members of the board shall not otherwise be compensated by the association for their services.
SECTION 7. (1) In addition to the rights and powers elsewhere in this act, the association may:
(a) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of this act;
(b) Sue or be sued, including taking any legal actions necessary or proper to recover or collect assessments due the association under Section 8 of this act and to settle claims or potential claims against it;
(c) Borrow money to affect the purposes of this act; any notes or other evidence of indebtedness of the association not in default shall be legal investments for domestic insurers and may be carried as admitted assets;
(d) Employ or retain such persons as are necessary or appropriate to handle the financial transactions of the association, and to perform such other functions as become necessary or proper under this act;
(e) Take such legal action as may be necessary or appropriate to:
(i) Avoid the payment of improper grants or any other expenditures by the association;
(ii) Recover any amounts erroneously or improperly paid by the association;
(iii) Recover any amounts paid by the association as a result of mistake of fact or law;
(iv) Recover other amounts due the association.
(f) Organize itself as a corporation or in other legal form permitted by the laws of the state;
(g) Request information from a person seeking a grant from the association in order to aid the association in determining its obligations under this act with respect to the person, and the person shall promptly comply with the request; and
(h) Take other necessary or appropriate action to discharge its duties and obligations under this act or to exercise its powers under this act.
(2) The association may join an organization of one or more other state associations of similar purposes, to further the purposes and administer the powers and duties of the association.
(3) The board of directors of the association shall have discretion and may exercise a reasonable business judgment to determine the means by which the association is to provide the benefits of this act in an economical and efficient manner.
(4) Venue in a suit against the association arising under the act shall be in Hinds County, Mississippi. The association shall not be required to give an appeal bond in an appeal that relates to a cause of action arising under this act.
SECTION 8. (1) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers at such time and for such amounts as the board finds necessary not to exceed the sum of Ten Million Dollars ($10,000,000.00) in each calendar year. Assessments shall be due not less than thirty (30) days after prior written notice to member insurers and shall accrue interest at twelve percent (12%) per annum on and after the due date.
(2) The assessments against member insurers shall be in the proportion that the premiums received on business in this state by each assessed member insurer for the three (3) most recent calendar years for which information is available preceding the year in which the assessment is made bears to such premiums received on business in this state for such calendar years by all assessed member insurers; however, a minimum assessment of Five Hundred Dollars ($500.00) shall be assessed to each member insurer. Except for the minimum assessment, the assessment to a member insurer may not exceed one-half of one percent (0.5%) of that member insurer's average annual premiums received in this state during the three (3) calendar years preceding the year in which the assessment is made. Computation of assessments under this subsection shall be made with a reasonable degree of accuracy, recognizing that exact determinations may not always be possible.
(3) The association may abate or defer, in whole or in part, the assessment of a member insurer if, in the opinion of the board, payment of the assessment would endanger the ability of the member insurer to fulfill its contractual obligations. In the event an assessment against a member insurer is abated, or deferred, in whole or in part, the amount by which such assessment is abated or deferred may be assessed against the other member insurers in a manner consistent with the basis for assessments set forth in this section. Once the conditions that caused a deferral have been removed or rectified, the member insurer shall pay all assessments that were deferred pursuant to a repayment plan approved by the association.
(4) The board may, by an equitable method as established in the plan of operation, refund to member insurers, in proportion to the contribution of each insurers, the amount by which the assets of the association exceed the amount the board finds is necessary to carry out the purposes of the association. A reasonable amount may be retained by the association to provide funds for the continuing expenses of the association and for future grant awards.
(5) The association shall issue to each insurer paying an assessment under this act a certificate of contribution, in a form prescribed by the commissioner, for the amount of the assessment so paid. All outstanding certificates shall be of equal dignity and priority without reference to amounts or dates of issue. A certificate of contribution may be shown by the insurer in its financial statement as an asset in such form and for such amount, if any, and period of time as the commissioner may approve.
(6) (a) A member insurer that wishes to protest all or part of an assessment shall pay when due the full amount of the assessment. Payment shall be accompanied by a statement in writing that the payment is made under protest and setting forth a brief statement of the grounds for the protest.
(b) Within sixty (60) days following the payment of an assessment under protest by a member insurer, the association shall notify the member insurer in writing of its determination with respect to the protest unless the association notifies the member insurer that additional time is required to resolve the issues raised by the protest.
(c) Within thirty (30) days after a final decision has been made, the association shall notify the protesting member insurer in writing of that final decision. Within sixty (60) days of receipt of notice of the final decision, the protesting insurer may appeal that final action to the commissioner.
(d) In the alternative to rendering a final decision, the association may refer protests to the commissioner for a final decision, with or without a recommendation from the association.
(e) If the protest or appeal on the assessment is upheld, the amount paid in error or excess shall be returned to the member insurer. Interest on a refund due a protesting member shall be paid at the rate actually earned by the association.
(7) The association may request information of member insurers in order to aid in the exercise of its power under this section and members insurers shall promptly comply with a request.
SECTION 9. (1) Member insurers may offset against its (premium, franchise or income) tax liability (or liabilities) to this state an assessment described in Section 8 of this act to the extent of twenty percent (20%) of the amount of such assessment, if any, for each year over the next five (5) succeeding years. However, if the offset is less than twenty percent (20%), any unused balance may be carried over to any succeeding year until such time as the offset provided herein is fully used. In the event a member insurer should cease doing business, all uncredited assessment may be credited against its (premium, franchise or income) tax liability (or liabilities) for the year it ceases doing business.
(2) Any sums which are acquired by refund, pursuant to subsection (6) of Section 8 of this act, from the association by member insurers and which have theretofore been offset against (premium, franchise or income) taxes as provided in subsection (1) of this section, shall be paid by such insurers to this state in such manner as the tax authorities may require. The association shall notify the commissioner that such refunds have been made.
SECTION 10. (1) (a) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon the commissioner's written approval or unless it has not been disapproved within thirty (30) days.
(b) If the association fails to submit a suitable plan of operation within one hundred eighty (180) days following the effective date of this act, or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this act. Such rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
(2) All member insurers shall comply with the plan of operation.
(3) The plan of operation shall, in addition to requirements enumerated elsewhere in this act:
(a) Establish the procedures whereby all the power and duties of the association under this act will be performed;
(b) Establish procedures for handling the assets of the association;
(c) Establish the amount and method of reimbursing members of the board of directors under Section 6 of this act;
(d) Establish the procedures by which grant applications may be filed with the association and establish acceptable forms of proof of eligibility to receive grant funds;
(e) Establish or adopt mitigation standards required to be achieved and certifications required to be obtained in order to receive grant funds;
(f) Establish regular places and times for meetings, including telephone conference calls of the board of directors;
(g) Establish procedures for records to be kept of all financial transactions of the association, its agents and the board of directors;
(h) Establish the procedures whereby selection of the board of directors shall be made and submitted to the commissioner;
(i) Establish any additional procedures for assessments under Section 8 of this act.
(j) Contain additional provisions necessary or proper for the execution of the powers and duties of the association.
(k) Establish procedures whereby a director may be removed for cause, including in the case where a member insurer director becomes an impaired or insolvent insurer.
(l) Require the board of directors to establish a policy and procedures for addressing conflicts of interests.
SECTION 11. (1) In addition to the duties and powers enumerated elsewhere in this act, the commissioner shall upon request of the board of directors, provide the association with a statement of the premiums in this state for each member insurer.
(2) The commissioner may suspend or revoke, after notice and hearing, the license or certificate of authority to transact business in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative the commissioner may levy a forfeiture on any member insurer which fails to pay an assessment when due. The forfeiture shall not exceed five percent (5%) of the unpaid assessment per month, but no forfeiture shall be less than One Hundred Dollars ($100.00) per month.
(3) A final action of the board of directors or the association may be appealed to the commissioner by an insurer if the appeal is taken within thirty (30) days of its receipt of notice of the final action being appealed. A final action or order of the commissioner shall be subject to judicial review in a court of competent jurisdiction in accordance with the laws of this state that apply to the actions or orders of the commissioner.
SECTION 12. The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner and the Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER), each year not later than one hundred fifty (150) days after the association's fiscal year, a financial report in a form approved by the commissioner and a report of its activities during the preceding fiscal year. Upon the request of a member insurer, the association shall provide the member insurer with a copy of the report.
SECTION 13. The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real property.
SECTION 14. There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or his representatives, for any action or omission by them in the performance of their powers and duties under this act. This indemnity shall extend to the participation in any organization of one or more other state associations of similar purposes and to any such organization and its agents or employees.
SECTION 15. The Commissioner of Insurance may promulgate rules and regulations as necessary to effectuate the provisions of this act.
SECTION 16. This act shall take effect and be in force from and after July 1, 2025.