2006 Regular Session
By: Representative Formby, Upshaw, Peranich
AN ACT TO REQUIRE INSURANCE AGENTS WHO SELL HOMEOWNERS INSURANCE POLICIES TO EXPLAIN TO THE PERSON TO WHOM THE HOMEOWNERS INSURANCE POLICY IS SOLD THAT FLOOD INSURANCE COVERAGE SHALL NOT BE PROVIDED UNDER THE HOMEOWNERS POLICY SOLD TO SUCH PERSON; TO REQUIRE THE INSURANCE COMMISSIONER TO PRESCRIBE A FORM THAT VERIFIES THAT THE REQUIRED INFORMATION WAS RECEIVED FROM THE INSURANCE AGENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Every agent, as defined by Section 83-17-1, who sells a homeowners insurance policy shall inform the person to whom a homeowners insurance policy is sold that flood insurance coverage shall not be provided under the homeowners insurance policy sold to such person. After the agent provides the information required under this section, the agent shall verify that the information was given to the person to whom the homeowners insurance policy is sold by requiring the person to sign a verification form prescribed by the Insurance Commissioner.
(2) The Insurance Commissioner shall prescribe a form that contains, at least, the following:
(a) An explanation of homeowners insurance policies; and
(b) A designated place on the form for the signature of the person who purchases a homeowners insurance policy to verify that the homeowners policy was explained to such person by the agent.
SECTION 2. Any homeowners' insurance policy that provides a percentage deductible for the peril of windstorm from a named storm shall use the term "windstorm deductible" when referring to such a deductible in the insurance policy or in any endorsement to the policy.
SECTION 3. This act shall take effect and be in force from and after its passage.