Senate Bill 2043

AN ACT TO PROVIDE FOR A FLEXIBLE RATING SYSTEM FOR PROPERTY AND CASUALTY INSURANCE RATES; TO ALLOW SUCH INSURERS TO INCREASE OR DECREASE EXISTING RATES WITHIN A CERTAIN PERCENTAGE WITHOUT PRIOR APPROVAL BY THE COMMISSIONER OF INSURANCE; TO PROVIDE THAT THE COMMISSIONER MAY DETERMINE THAT THE RATE CHANGE IS INADEQUATE OR UNFAIRLY DISCRIMINATORY AND MAY ORDER THE FILING NO LONGER EFFECTIVE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following provision shall be codified within Chapter 2, Title 83, Mississippi Code of 1972:

83-2-__. (1) Notwithstanding any provision of law to the contrary, a filing made by an insurer under this section that provides for an overall statewide rate increase or decrease of no more than eight percent (8%) in the aggregate for all personal lines coverages that are subject to the filing may take effect the date it is filed. The eight percent (8%) limitation does not apply on an individual insured basis. No more than one (1) rate filing may be made by an insurer pursuant to the expedited process provided in this subsection during any twelve-month period, unless a rate filing, when combined with any other rate filing or filings made by an insurer within the preceding twelve (12) months, does not result in an overall statewide increase or decrease of more than eight percent (8%) in the aggregate for all personal lines coverages that are subject to the filing.

(2) Rate filings falling outside of the limitation provided in subsection (1) of this section shall be subject to the filing and approval requirements provided in this chapter, unless otherwise exempt as provided by law.

(3) A filing submitted pursuant to subsection (1) of this section is considered to comply with state law. However, if the Commissioner of Insurance determines that the filing is inadequate or unfairly discriminatory, he shall issue a written order specifying in detail the provisions of the insurance code the insurer has violated and the reasons the filing is inadequate or unfairly discriminatory and stating a reasonable future date on which the filing is to be considered no longer effective. An order by the commissioner pursuant to this subsection that is issued more than thirty (30) days from the date on which the commissioner received the rate filing is prospective only and does not affect any contract issued or made before the effective date of the order. For purposes of this section, "unfairly discriminatory rate" means a rate for a risk that is classified in whole or in part on the basis of race, color, creed or national origin.

(4) No rate increase within the limitation specified in subsection (1) of this section may be implemented with regard to an individual existing policy, unless the increase is applied at the time of a renewal or conditional renewal of an existing policy and the insurer, at least thirty (30) days in advance of the end of the insured's policy period, mails or delivers to the named insured, at the address shown in the policy, a written notice that clearly and conspicuously discloses its intention to change the rate. A notice of renewal or conditional renewal that clearly and conspicuously discloses the renewal premium applicable to the policy shall be deemed to be in compliance with this subsection.

SECTION 2. This act shall take effect and be in force from and after July 1, 2005.