House Bill 668

AN ACT TO PROVIDE THAT A PORTION OF THE STATE INSURANCE PREMIUM TAX REVENUE SHALL BE DEPOSITED INTO A SPECIAL FUND TO BE DESIGNATED AS THE "MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION REINSURANCE ASSISTANCE FUND"; TO PROVIDE THAT MONIES IN SUCH SPECIAL FUND MAY BE USED BY THE DEPARTMENT OF INSURANCE, UPON APPROPRIATION BY THE LEGISLATURE, FOR THE PURPOSE OF ASSISTING THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION IN DEFRAYING EXPENSES AND COSTS FOR REINSURANCE; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) Using fiscal year 2005 (the fiscal year ending June 30, 2005) as the base year, the State Tax Commission, no less often than annually, shall pay over to the State Treasurer for deposit into the special fund created in subsection (2) of this section, an amount representing any growth after the base year of the portion of the insurance premium tax collected under Section 27-15-103 et seq. and allocated for distribution to the General Fund.

(2) (a) There is created in the State Treasury a special fund to be designated as the "Mississippi Windstorm Underwriting Association Assistance Fund." The fund shall consist of monies deposited therein as provided under subsection (1) of this section and monies from any other source designated for deposit into such fund. 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 or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

(b) Monies in the special fund may be used by the Department of Insurance, upon appropriation by the Legislature, only for the purpose of assisting the Mississippi Windstorm Underwriting Association in defraying expenses and costs for reinsurance under Section 83-34-1 et seq. The Mississippi Windstorm Underwriting Association may use any such funds received from the Department of Insurance for the sole purpose of defraying expenses and costs for reinsurance. Monies in the fund used for the purposes described in this section shall be in addition to other funds available from any other source for such purposes.

SECTION 2. This act shall take effect and be in force from and after its passage.