Amendment_Report_for

SECTION 1. This act shall be known and may be cited as the "Mississippi Economic Growth and Redevelopment Act of 2007."

SECTION 2. (1) (a) There is created in the State Treasury a special fund to be designated as the "Mississippi Windstorm Underwriting Association Reinsurance Assistance Fund." The fund shall consist of monies deposited therein as provided under

Section 27-65-75(21), Section 4 of this act 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; however, any monies in excess of Fifty Million Dollars ($50,000,000.00) remaining in the fund at the end of a fiscal year that have not been appropriated shall lapse into the State General 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 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 paragraph (b) shall be in addition to other funds available from any other source for such purposes.

(c) Monies in the special fund may not be used, expended or transferred for any other purpose except upon amendment to this section by a bill enacted by the Legislature with a vote of not less than two-thirds (2/3) of the members of each house present and voting.

(2) (a) The Commissioner of Insurance shall file a report with the Joint Legislative Budget Committee not later than September 1 of each year, recommending the amount of assistance, if any, needed by the Mississippi Windstorm Underwriting Association for reinsurance expenses and costs. The Commissioner of Insurance also shall provide a copy of the report to the Attorney General and the Executive Director of the Mississippi Development Authority.

(b) The Mississippi Windstorm Underwriting Association shall prepare and file detailed reports with the Clerk of the House of Representatives, Secretary of the Senate, Commissioner of Insurance, Attorney General and Executive Director of the Mississippi Development Authority regarding the receipt and expenditure of monies by the association under this section.

SECTION 3. Section 27-65-75, Mississippi Code of 1972, is amended as follows:

27-65-75. On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:

(1) (a) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. On or before August 15, 1993, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.

A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.

Monies allocated for distribution and credited to a municipal corporation under this subsection may be pledged as security for a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan.

In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.

(b) On or before August 15, 2006, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college.

(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year. The State Tax Commission shall require all distributors of gasoline and diesel fuel to report to the commission monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month. The State Tax Commission shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality. In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the State Tax Commission may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year. For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.

(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program. The Mississippi Department of Transportation shall provide to the State Tax Commission such information as is necessary to determine the amount of proceeds to be distributed under this subsection.

(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17. On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17. Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section. Those funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published, for the first time, as provided by law before March 29, 1981. From the amount of taxes paid into the special fund under this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies. The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:

(a) One-third (1/3) shall be allocated to all counties in equal shares;

(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and

(c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.

For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.

The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994.

Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.

(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67. Those payments into that fund are to be made on the last day of each succeeding month hereafter.

(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983.

(7) On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2) shall be deposited by the commission into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35. On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00). Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.

(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.

(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.

(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi State Fairgrounds Complex, shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum.

(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund, shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39.

(15) Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(f) and (g)(i)2, shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7.

(16) On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3.

(17) Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d).

(18) On or before August 15, 2007, and each succeeding month thereafter through July 15, 2008, from the sales tax revenue collected during the preceding month under the provisions of this chapter, Two Million Five Hundred Thousand Dollars ($2,500,000.00) shall be deposited into the Special Funds Transfer Fund created in Section 4 of Chapter 556, Laws of 2003.

(19) (a) On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9.

(b) For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows:

(i) For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive Fund, one hundred percent (100%) of the diversion shall be deposited into the fund;

(ii) For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund;

(iii) For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund;

(iv) For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund; and

(v) For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund.

(20) On or before January 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-28-1 through 57-28-5, shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Sales Tax Incentive Fund created in Section 57-28-3.

(21) On or before August 15, 2007, and each succeeding month thereafter, from the total sales tax revenue collected during the preceding month under the provisions of this chapter in Hancock, Harrison, Jackson, Pearl River, Stone and George Counties, One Million Five Hundred Thousand Dollars ($1,500,000.00), in the aggregate, shall be deposited into the Mississippi Windstorm Underwriting Association Reinsurance Assistance Fund created under Section 2 of Senate Bill No. 3050, 2007 Regular Session.

(22) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund.

(23) It shall be the duty of the municipal officials of any municipality that expands its limits, or of any community that incorporates as a municipality, to notify the commissioner of that action thirty (30) days before the effective date. Failure to so notify the commissioner shall cause the municipality to forfeit the revenue that it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action. If any funds have been erroneously disbursed to any municipality or any overpayment of tax is recovered by the taxpayer, the commissioner may make correction and adjust the error or overpayment with the municipality by withholding the necessary funds from any later payment to be made to the municipality.

SECTION 4. Using state 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 Section 2 of this act, 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.

SECTION 5. The following shall be codified as Section 27-7-22.33, Mississippi Code of 1972:

27-7-22.33. (1) There shall be allowed as a credit against the tax imposed by this chapter an amount equal to the applicable percentage of the excess of the annual premiums paid for policies issued or renewed on or after October 1, 2006, by or on behalf of a taxpayer for "essential property insurance," as defined in Section 83-34-1(a), in any "Coast area," as defined in Section 83-34-1(f), to the Mississippi Windstorm Underwriting Association over the amount of annual premiums that would have been paid to the Mississippi Windstorm Underwriting Association if such policy had been issued immediately prior to October 1, 2006. The amount of such increase shall be determined by the Department of Insurance and the State Tax Commission and published annually. The applicable percentage shall be one hundred percent (100%) for 2007, and 2008 if no premium was paid between October 1 and December 31, 2006, and shall decrease by twenty percent (20%) for each year thereafter such that no taxpayer may claim a credit for more than five (5) years.

(2) Premiums paid after October 1, 2006, and before January 1, 2007, shall be claimed and allowed on the first income tax return that is due on or after January 1, 2007.

(3) Premiums paid on or after January 1, 2007, shall be claimed and allowed on the first income tax return that is due in the year after the payment.

(4) Any tax credit claimed under this section but not used in any taxable year may be carried forward for three (3) consecutive years from the close of the tax year in which the credit was earned. The credit that may be utilized in any one (1) tax year shall be limited to an amount not greater than the total state income tax liability of the taxpayer for that year reduced by the sum of all other income tax credits allowable to the taxpayer, except credit for tax payments made by or on behalf of the taxpayer.

SECTION 6. There shall be allowed as a credit against the tax imposed under Sections 27-15-103 through 27-15-129, in an amount equal to ten percent (10%) of the gross premium receipts on new policies written, or covering risk, within the Coast area of this state on or after January 1, 2007, for any domestic or foreign insurance company which writes policies within the Coast area; provided, however, the credit allowed hereunder shall not exceed One Hundred Thousand Dollars ($100,000.00) during any calendar year. The State Tax Commission and the Department of Insurance shall determine what constitutes new policies written, or covering risk, within the Coast area of this state. Any tax credit claimed under this section but not used in any taxable year may be carried forward for the three (3) succeeding tax years. For purposes of this section, "Coast area" shall have the meaning as provided in Section 83-34-1(f).

SECTION 7. Section 83-34-1, Mississippi Code of 1972, is amended as follows:

83-34-1. In this chapter, unless the context otherwise requires:

(a) "Essential property insurance" means insurance against direct loss to property from the risk of windstorm and hail in the manner as defined and limited in the standard real property and contents insurance forms approved by the commissioner. Essential property insurance shall not include coverage for any loss other than the actual cash value at the time of loss of the structure and contents. Essential property insurance includes builders risks coverage. The extent of risk covered, the insuring language and the exclusions are all subject to approval by the commissioner. Policies, rules and rates shall be filed with the commissioner in the manner provided for insurance companies.

(b) "Association" means the Mississippi Windstorm Underwriting Association established pursuant to the provisions of this chapter.

(c) "Plan of operation" means the plan of operation of the association approved or promulgated by the * * * commissioner pursuant to the provisions of this chapter.

(d) "Insurable property" means * * * real property, and contents therein when requested, at fixed locations in the Coast area * * *, which property is determined by the association * * * to be in an insurable condition and otherwise meet the underwriting requirements of the association. * * * Any one- or two-family dwelling built, rebuilt, altered or remodeled in compliance with the applicable building codes, including * * * design-wind requirements, that is not otherwise rendered uninsurable by reason of use, occupancy or state of repair, shall be an insurable risk. * * * Neighborhood area, location and environmental hazards beyond the control of the applicant or owner of the property shall not be considered in determining insurable condition. * * * "Insurable property" shall not include insurance on motor vehicles. "Insurable property" includes mobile homes or manufactured housing that are affixed in compliance with applicable codes.

(e) "Commissioner" means the Insurance Commissioner of the State of Mississippi.

(f) "Coast area" means Hancock, Harrison, Jackson, Pearl River, Stone and George Counties.

(g) (i) "Net direct premiums," for purposes of calculating percentages of participation for assessable insurers for the year 2007, means gross direct premiums, excluding reinsurance assumed and ceded, written on property in this state for the risk of windstorm and hail * * * less return premiums upon cancelled contracts, dividends paid or credited to policyholders, or the unused or unabsorbed portion of premium deposits * * *. "Net direct premiums" includes the premium charge component for the risk of windstorm and hail to property in all policies, including multi-peril and other policies that package or combine coverage for other risks. The plan of operation shall prescribe the portion of premium allocated for the risk of windstorm and hail in multi-peril and other policies that package or combine coverage for other risks. "Net direct premiums" shall not include farm property. "Net direct premiums" shall not include the property components of motor vehicles and other mobile property, but includes premiums for the risks of windstorm and hail for mobile homes or manufactured housing.

(ii) "Net direct premiums," for purposes of calculating percentages of participation for assessable insurers after the year 2007, means those premiums reported by the assessable insurers in their annual statements to the Department of Insurance that were charged for insurance for any and all risks on real property and contents in the state. The department shall determine which lines of insurance shall be included in the calculation of net direct premiums. The included lines may be changed from time to time in the discretion of the commissioner. "Net direct premiums" shall not include premiums for insuring farm property that are reported timely to the association as provided in the plan of operation.

(iii) The commissioner is authorized and directed to provide to the association annual statements, other reports and any statistics necessary to provide the information herein required and which the commissioner is hereby authorized and empowered to obtain from any assessable insurer.

(h) "Farm property" means property used for farming purposes; however, it shall not include any property used for dwelling purposes or any outbuildings used in connection therewith.

(i) "Losses" includes expenses for the adjustment and resolution of claims and operational and other general expenses.

(j) "Bonds, loans, lines of credit and indebtedness" include interest, finance charges, and any and all other costs associated with the financing.

(k) "Percentage of participation" for an assessable insurer means the percentage determined by dividing the assessable insurers net direct premiums written in this state in the previous year, less any credits that the association may allow, by the aggregate net direct premiums written in this state by all assessable insurers of the association in the previous year.

(l) "Nonadmitted insurers" mean those insurance companies defined in Section 83-21-17, and any other companies and persons selling insurance on risks in Mississippi that are not licensed to do business in the State of Mississippi.

(m) "Brokers for nonadmitted insurers" means those agents defined in 83-21-19.

SECTION 8. Section 83-34-3, Mississippi Code of 1972, is amended as follows:

83-34-3. (1) There is hereby created the Mississippi Windstorm Underwriting Association, which shall be a separate and independent entity as provided for herein * * *. At its option, the association may incorporate. All assets of the association shall hereinafter belong to and remain with the association. There shall be no distribution of income or assets other than for the benefit of the association, which shall have the right to invest and reinvest assets.

(2) From and after the effective date of Senate Bill No. 3050, 2007 Regular Session, the association shall no longer have members. Former "members" of the association shall be "assessable insurers" and shall have no rights to the assets and profits of the association, but shall have the obligation for regular assessments as provided herein. As a condition of its authority to continue to transact the business of insurance in this state, any licensed insurer shall be an assessable insurer so long as the association is in existence. By transacting business in this state, each such licensed insurer agrees to be bound by the provisions of this statute and the plan of operation as approved by the commissioner, and all amendments and revisions thereto.

(3) Any licensed insurer first authorized to write insurance after the effective date of Senate Bill No. 3050, 2007 Regular Session, shall become an assessable insurer on the first day of January immediately following such authorization. The determination of such insurer's participation in the association shall be made based upon writings in the prior year in the same manner as for all other assessable insurers of the association.

(4) The premiums, assessments, fees, investment income and other revenue of the association are funds received for the sole purpose of providing insurance coverage, paying claims for Mississippi citizens insured by the association, securing and repaying debt obligations issued by the association, and conducting all other activities of the association, all as required or permitted by this chapter. Such revenue shall not be considered taxes, fees, licenses or charges for services imposed by the State of Mississippi on individuals, businesses, or agencies, and shall not be used for other purposes.

(5) It is the intent of the Legislature that the association be and act as a nonprofit entity. The association shall be free from taxation of every kind by the state and any political subdivision or other instrumentality thereof. It is the intent of the Legislature that the association be tax exempt from all taxes, including federal taxes, and the association is granted the authority to take those steps necessary to obtain federal tax exempt status.

(6) Any debt obligations issued by the association, their transfer, and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation of every kind by the state and any political subdivision or other instrumentality thereof.

(7) In the event of the termination of the association by act of the Legislature, or other means, the assets of the association shall be applied first to pay all debts, liabilities and obligations of the association, including the establishment of reasonable reserves for any contingent liabilities or obligations, and all remaining assets of the association shall become property of the state.

(8) The association shall operate as a private enterprise and shall not be subject to the procurement provisions of Section 31-7-13, and policies and decisions of the association, including, but not limited to, decisions relating to incurring debt, levying of assessments, the issuance and sale of bonds, claims decisions under association policies, hiring and firing of employees, and all services relating to the operation of the association shall not be subject to the provisions of Section 25-9-101 et seq. The association shall not be required to obtain or to hold a license or certificate of authority issued by the commissioner or any other office. The association shall not be required to participate as a member insurer of the Mississippi Insurance Guaranty Association.

SECTION 9. The following section shall be codified as Section 83-34-4, Mississippi Code of 1972:

83-34-4. (1) Nonadmitted insurers shall not be assessable insurers of the association. In lieu of being an assessable insurer, all brokers for nonadmitted insurers shall collect and remit to the association a nonadmitted insurer fee on all premiums collected after July 1, 2007, for all insurance written by such broker for a policy from a nonadmitted insurer for any and all risks on real property and contents in this state. By procuring or selling insurance on property in this state from a nonadmitted insurer, each broker for a nonadmitted insurer agrees to be bound by the provisions of this chapter and to collect and remit the nonadmitted insurer fee provided for herein.

(2) The nonadmitted insurer fee shall be a percentage of the total policy premium but the nonadmitted insurer fee shall not be considered premium and is not subject to premium taxes or commissions. However, failure to pay the nonadmitted insurer fee shall be treated the same as failure to pay premium. "Total policy premium" includes taxes and commissions.

(3) The nonadmitted insurer fee percentage shall be set by the commissioner. Such percentage may be changed from time to time in the discretion of the commissioner, but in no event shall the nonadmitted insurer percentage be less than five percent (5%).

(4) Brokers for nonadmitted insurers shall remit the nonadmitted insurer fee directly to the association on no less than a monthly basis. In addition to the nonadmitted insurer fee provided for herein, brokers for nonadmitted insurers shall collect and remit surcharges as provided by this chapter.

SECTION 10. Section 83-34-5, Mississippi Code of 1972, is amended as follows:

83-34-5. The association shall, pursuant to the provisions of this chapter and the plan of operation, and with respect to essential property insurance on insurable property, have the power on behalf of its assessable insurers:

(a) To issue policies of essential property insurance on insurable property to applicants;

(b) At its option, and with consent of the commissioner, to issue policies of related essential property insurance on insurable property to applicants;

(d) To levy and collect regular assessments from assessable insurers;

(e) To issue bonds or incur other forms of indebtedness, including, but not limited to, loans, lines of credit or letters of credit;

(f) To establish underwriting criteria consistent with the provisions of this chapter and as approved by the commissioner;

(g) To invest and reinvest income and assets subject to the oversight of the commissioner; and

(h) All other powers necessary to carry out the provisions and intent of this chapter.

SECTION 11. Section 83-34-7, Mississippi Code of 1972, is amended as follows:

83-34-7. (1) The Board of Directors of the Mississippi Insurance Underwriting Association as presently constituted shall serve as the temporary board of directors of the association. Such temporary board of directors shall prepare and submit a plan of operation in accordance with Section 83-34-13 and shall serve until the permanent board of directors shall take office in accordance with the plan of operation. The permanent board shall consist of five (5) representatives of the members to be appointed by the temporary board of directors subject to the approval of the commissioner and three (3) agents from the Coast area to be appointed by the commissioner. The terms of the members of the board of directors in place before the effective date of Senate Bill No. 3050, 2007 Regular Session, shall expire on the effective date of Senate Bill No. 3050, 2007 Regular Session, and such persons shall cease to serve on the board and shall relinquish all power and control of the association.

(2) From and after the effective date of Senate Bill No. 3050, 2007 Regular Session, the board of directors of the association shall consist of the following members appointed by the commissioner:

(a) A banking executive from the Coast area, who shall serve for a term of two (2) years;

(b) A person who is a member of the Gulf Coast Business Council, who shall serve for a term of two (2) years;

(d) A person who is an executive of an insurance company that has been a member of the association for at least one (1) year prior to the effective date of Senate Bill No. 3050, 2007 Regular Session, who shall serve for a term of two (2) years;

(e) A person who is a countywide elected official in the Coast area, who shall serve for a term of two (2) years;

(f) A person who is a municipal elected official in the Coast area, who shall serve for a term of two (2) years;

(g) A person who is a member of the public at large in the Coast area, who shall serve for a term of three (3) years;

(h) A person who is a member of the Gulf Coast Business Council, who shall serve for a term of three (3) years;

(i) A person who is an executive of an insurance company with its offices in the Coast area, who shall serve for a term of three (3) years; and

(j) Two (2) persons who are not residents of the Coast area, who shall both serve for a term of three (3) years.

On or before the effective day of Senate Bill No. 3050, 2007 Regular Session, the commissioner shall make such appointments and request such resignations from the existing board as are appropriate to comply with this section.

(3) The board of directors has the power to act and make binding decisions on behalf of the association on all issues.

SECTION 12. Section 83-34-9, Mississippi Code of 1972, is amended as follows:

83-34-9. (1) All assessable insurers of the association shall participate in regular assessments levied by the association based upon their percentage of participation. The association may allow assessable insurers of groups of insurers to combine their annual net direct premiums and other data, including data that supports any incentives that may be allowed by the association, to the extent that such grouping promotes the voluntary writing of essential property insurance in the Coast area. Any provisions for credits and grouping of data shall be prescribed in the plan of operation.

(2) All profits of the association shall remain as assets of the association.

(3) The plan of operation shall provide financial incentives or financial penalties, or both, to ensure that assessable insurers write essential property insurance in the Coast area. The incentives and penalties may include, but is not limited to, a reduction in recovery of regular assessments, a nonrecoverable participation in losses incurred by the association above the amounts covered by the regular assessments, and other incentives and penalties as provided in the plan of operation. The commissioner shall approve the plan of operation as provided in Section 83-34-13.

SECTION 13. The following shall be codified as Section 83-34-10, Mississippi Code of 1972:

83-34-10. In the event of a storm that may produce losses in excess of funds that may be immediately available to the association, or in the event that the association determines that it will otherwise have a claim deficit or any other deficit, then the association, with consent of the commissioner, shall have the power to levy regular assessments against assessable insurers based upon their percentage of participation. In any year, the aggregate total of regular assessments shall not exceed the greater of ten percent (10%) of the deficit or ten percent (10%) of the aggregate statewide direct written premiums for property insurance for the prior calendar year of all association assessable insurers. Regular assessments shall be paid by assessable insurers within sixty (60) days of receipt of the notice of the assessments.

SECTION 14. Section 83-34-11, Mississippi Code of 1972, is amended as follows:

83-34-11. (1) Within one hundred twenty (120) days of the levy of any regular assessments, the commissioner shall implement a surcharge on all property and casualty insurance premiums for insurance for property and operations in this state designed to recover to the association within one (1) year the amount of such regular assessment for reimbursement to assessable insurers who paid the regular assessment. "Premiums" includes premiums for policies issued by or for the association. "Premiums" shall not include premiums for workers' compensation coverage provided by self-insured funds or self-insured trust funds or premiums for coverage by or through self-insured plans administered by the State of Mississippi. Such surcharge shall be specifically identified on either the premium statements or the policy declarations pages or other appropriate policy forms as relating to the specific MWUA regular assessment for which it was implemented. The commissioner shall name each such surcharge so that it can be uniformly identified by insurers and brokers.

(2) The surcharge shall be a percentage of the total policy premium, but the surcharge shall not be considered premium and is not subject to premium taxes or commissions. However, failure to pay the surcharge shall be treated the same as failure to pay premium. "Total policy premium" includes taxes and commissions.

(3) If at any time, the surcharge to repay regular assessments shall be insufficient, the commissioner shall increase the surcharge as necessary and appropriate. However, in no event may the aggregate total of all regular assessments in a year exceed the maximum amounts specified in Section 83-34-10.

(4) The commissioner shall cease regular assessment surcharges as he determines appropriate funds have been collected.

(5) Each licensed insurer issuing insurance for property and casualty risks in the state and each broker for nonadmitted insurers, shall collect the regular assessment surcharges established by the commissioner under the authority of this section. Funds collected by such insurers and brokers as regular assessment surcharges shall be collected and held in trust and shall be fully remitted to the association on a quarterly basis with forms providing appropriate information as designed by the association. Insurers and brokers shall remit such funds to the association within twenty (20) days after the end of each quarter. At such time the insurers and brokers shall further remit to the association all interest earned on the surcharge funds. However, assessable insurers of the association who have paid to the association the regular assessment that is the basis of the surcharge shall not be required to remit interest earned on collected surcharges from the lines of business on which their regular assessment was based.

(6) The association shall reimburse assessable insurers for regular assessments from the funds collected as regular assessment surcharges. Reimbursements shall be made to assessable insurers in the same percentages as the regular assessments were paid by assessable insurers. The association must endeavor to make reimbursements from the surcharge funds collected within sixty (60) days of the end of each quarter. Any funds collected by the association in excess of the amount necessary to reimburse assessable insurers for regular assessments shall be general funds of the association.

(7) The reimbursement to assessable insurers for regular assessments as provided in subsection (6) must be refunded to the association by any insurer that reduces its property writings in the state by more than ten percent (10%) in the five-year period beginning January 1 of the year following the regular assessment, unless such insurer is granted an exception by the commissioner after public hearing on the request for exception. The reasons for an exception by the commissioner shall include, but are not limited to, inadequate solvency to continue writing at the previous level. Refunds shall be proportionate to the point in time during the five-year period the assessable insurer drops its property writings more than ten percent (10%). Prior to receiving any reimbursement by the association, each assessable insurer must execute an agreement provided by the association agreeing to comply with the intent of this subsection.

(8) The association and the commissioner are both specifically given the power to audit licensed insurers and brokers for nonadmitted insurers to confirm the accuracy of remittances of surcharges at the expense of the licensed insurers and brokers.

(9) The association shall report quarterly to the commissioner providing all financial information for each regular assessment surcharge, including:

(a) The original amount of the regular assessment and the amount remaining not reimbursed to assessable insurers;

(b) Total surcharge funds recovered to date; and

SECTION 15. The following shall be codified as Section 83-34-12, Mississippi Code of 1972:

83-34-12. The regular assessment of a assessable insurer may, after hearing, be ordered deferred, in whole or in part, upon application by the insurer if, in the opinion of the commissioner, payment of the assessment would render the insurer insolvent or in danger of insolvency, or would otherwise leave the insurer in such a condition that further transaction of the insurer's business would be hazardous to its policyholders, creditors, assessable insurers, subscribers, stockholders or the public. If that payment of an assessment against an assessable insurer is deferred by order of the commissioner, in whole or in part, the amount by which the assessment is deferred shall be assessed against other assessable insurer in the same manner as provided in Section 83-34-9.

SECTION 16. Section 83-34-13, Mississippi Code of 1972, is amended as follows:

83-34-13. (1) Within forty-five (45) days after the effective date of Senate Bill No. 3050, 2007 Regular Session, the directors of the association shall submit to the commissioner for review and approval a proposed plan of operation revised to be consistent with the provisions of Senate Bill No. 3050, 2007 Regular Session. The association shall maintain a plan of operation. The plan shall provide for the efficient, economical, fair and nondiscriminatory administration of the association. The plan may include methods for the assessment of all assessable insurers for deficits and expenses * * *, the establishment of necessary facilities, management of the association, * * *, underwriting standards, * * *, procedures for determining the amounts of insurance to be provided to specific risks, time limits and procedures for processing applications for insurance, and for such other provisions as may be deemed necessary by the board to carry out the purposes of this chapter.

(2) The plan of operation shall provide financial incentives or financial penalties, or both, to ensure that assessable insurers write essential property insurance in the Coast area. The incentives and penalties may include, but is not limited to, a reduction in recovery of regular assessments, a nonrecoverable participation in losses incurred by the association above the amounts covered by the regular assessments, and other incentives and penalties as provided in the plan of operation.

(3) The plan of operation shall provide (a) that the association shall offer a two percent (2%) deductible for loss from named storms; and (b) that the association shall also offer options for other deductibles for loss from named storms with appropriate rate reductions that shall include at least a twenty percent (20%) deductible for loss from named storms.

(4) The * * * commissioner shall approve the plan of operation and all amendments before they become effective. It is the obligation of the commissioner to confirm that such plan fulfills the purposes of this chapter. * * * If the commissioner approves a proposed plan or amendment, he shall certify the approval to the directors, and the plan, or amendment thereto, shall become effective ten (10) days after such certification. If the commissioner disapproves all or any part of the proposed plan of operation, or amendment thereto, he shall return the same to the directors with a written statement giving the reasons for disapproval and any recommendations the commissioner may wish to make. Within ten (10) days thereafter, the directors may alter the plan or amendment in accordance with the commissioner's recommendation or may * * * return a new plan to the commissioner. * * * The commissioner shall consider the proposals and shall then promulgate and place into effect a plan of operation certifying the same to the directors of the association after approval by the board of directors. Any such plan promulgated by the commissioner shall take effect ten (10) days after certification to the directors.

(5) * * * The commissioner may review the plan of operation at any time he deems expedient or prudent. After review of the plan, the commissioner may amend the plan after consultation with the directors of the association and upon certification to the directors of the amendment.

SECTION 17. Section 83-34-15, Mississippi Code of 1972, is amended as follows:

83-34-15. (1) (a) Any person having an insurable interest in insurable property is entitled to apply to the association for such coverage * * *. Applications shall be made on behalf of the owner of the insurable interest by a licensed resident broker or agent authorized by him. Applications shall be submitted on forms prescribed by the association.

(b) The association may require an inspection of any properties after application or request for renewal and may charge a fee for such inspection.

(c) The term "insurable interest" as used in this subsection shall be deemed to include any lawful and substantial economic interest in the safety or preservation of property from loss, destruction or pecuniary damage.

(2) If the association determines that the property is insurable and that there is no unpaid premium due from the applicant for prior insurance on the property, the association, upon receipt of the premium or such portion thereof as is prescribed in the plan of operation, shall cause to be issued, or issue, a policy of essential property insurance * * *. Such coverage shall be dependant upon the timely payment of premiums or premium installments as provided for at the time of application. Coverage limits shall be determined by the value of the insurable property at the time the policy is issued subject to maximum limits which shall be set forth under the plan of operation * * *. (3) If the association for any reason denies an application and refuses to issue or cause to be issued an insurance policy * * * to any applicant, or takes no action on an application within the time prescribed in the plan of operation, such applicant may appeal to the commissioner. The commissioner or a designated member of his staff, after reviewing the facts, may direct the association to issue or cause to be issued an insurance policy to the applicant; however, no coverage shall be in effect until such time as the premium is paid and the policy issued. In carrying out his duties pursuant to this section, the commissioner may request, and the association shall provide, any information the commissioner deems necessary to a determination concerning the reasons for the denial or delay of the application.

SECTION 18. Section 83-34-17, Mississippi Code of 1972, is amended as follows:

83-34-17. The rates, rating plans, rating rules, forms and endorsements applicable to the insurance written by the association shall be those approved for use of the association by the commissioner. * * * Rates shall be nondiscriminatory as to the same class of risk.

SECTION 19. Section 83-34-19, Mississippi Code of 1972, is amended as follows:

83-34-19. (1) Any assessable insurer or other licensed insurer, or broker for a nonadmitted insurer, who may be aggrieved by an act, order, ruling or decision of the association may, within thirty (30) days after such ruling, appeal to the commissioner. Any hearings held by the commissioner pursuant to such an appeal shall be in accordance with the procedure set forth in the insurance laws of Mississippi. The commissioner is authorized to appoint a member of his staff for the purpose of hearing such appeals, and a ruling based upon such hearing shall have the same effect as if heard by the commissioner. All assessable insurers or other licensed insurers, or brokers for a nonadmitted insurer, aggrieved by any order or decision of the commissioner may appeal to the Chancery Court of the First Judicial District of Hinds County, Mississippi, consistent with the insurance laws of the State of Mississippi.

(2) The association and any assessable insurer, other licensed insurer or broker for a nonadmitted insurer that may be aggrieved by an act, order, ruling or decision of the commissioner may, within thirty (30) days after such act, order, ruling or decision, appeal to the Chancery Court of the First Judicial District of Hinds County, Mississippi, consistent with the insurance laws of the State of Mississippi.

SECTION 20. Section 83-34-21, Mississippi Code of 1972, is amended as follows:

83-34-21. All reports of inspection performed by or on behalf of the association shall be made available to the assessable insurers of the association, applicants, agents, brokers and the commissioner.

SECTION 21. Section 83-34-23, Mississippi Code of 1972, is amended as follows:

83-34-23. There shall be no liability on the part of * * * the insurance commissioner or any of his staff and representatives for any action taken under and pursuant to the provisions of this chapter. There shall be no liability on the part of the association, its agents, representatives or employees, the members of the board, or any assessable insurer of the association, except for the contractual obligations of any contract of insurance and the duty to pay assessments as provided in this chapter.

SECTION 22. Section 83-34-27, Mississippi Code of 1972, is amended as follows:

83-34-27. The commissioner may from time to time make an examination into the affairs of the association when he deems prudent and, in undertaking such examination, may hold a public hearing. The expenses of such examination shall be borne and paid by the association. The association and the commissioner may from time to time make an examination of the data and payments of assessable insurers or other licensed insurers or brokers for nonadmitted insurers as it deems prudent. The expenses of such examination shall be borne and paid by the examined party or entity. Any person noticed for such examination may appeal the examination or the cost thereof, or both, to the commissioner.

SECTION 23. The following shall be codified as Section 83-34-31, Mississippi Code of 1972:

83-34-31. (1) The board of directors, subject to the approval of the commissioner, shall have the power and authority to issue bonds, and the power and authority to enter into loans, letters of credit, lines of credit, and other forms of indebtedness, as needed for operations, the purchase of reinsurance, claim losses, and incurred but not reported claims. (2) All such bonds and loans are secured by the power and duty of the commissioner to implement surcharges against all property and casualty insurance premiums for insurance for property and operations in this state sufficient to repay the bonds or loans, or both.

(3) If any of the bonds remain unsold sixty (60) days after issuance, the commissioner shall require all assessable insurers to purchase the bonds, which purchased bonds shall be treated as admitted assets; each assessable insurer shall be required to purchase that percentage of the unsold portion of the bond issue that equals the assessable insurer's current percentage of participation. An assessable insurer shall not be required to purchase the bonds to the extent that the commissioner determines that the purchase would endanger or impair the solvency of the insurer. The bonds must be in a form approved by the commissioner. With approval of the commissioner, the association may issue bonds or incur other indebtedness to retire or consolidate bonds as appropriate. Bonds and other debt obligations issued by or on behalf of the association are not to be considered "state bonds" and shall not be an obligation of the state.

(4) The state hereby covenants with holders of bonds issued pursuant to this section that the state will not limit, alter or deny the duties and obligations of this chapter, and of the association and the commissioner as established by this chapter, necessary to fulfill the terms of any agreements with bondholders, or in any way impair the rights and remedies of such bondholders as long as any such bonds remain outstanding unless adequate provision has been made for the payment of such bonds pursuant to the documents authorizing the issuance of such bonds.

SECTION 24. The following shall be codified as Section 83-34-33, Mississippi Code of 1972:

83-34-33. (1) When the association knows or has reason to believe that (a) it has or will incur losses from a hurricane that exceed reinsurance and other reasonably available assets of the association, such that one or more bond issues or other financing, or both, will be necessary to pay claims losses and other related expenses, or (b) the association has a deficit that cannot be reasonably resolved by income available to the association, then the association shall immediately give notice to the commissioner and request that the commissioner implement by an excess hurricane loss surcharge on all property and casualty insurance premiums for insurance for property and operations in this state designed to recover to the association the amount of all such bonds and other indebtedness resulting from the hurricane, or other deficit.

(2) At such time as the commissioner can reasonably estimate the amount of bonds or indebtedness, or both, necessitated by a hurricane event, and in no event more than ninety (90) days from the notice given by the association, the commissioner shall have the duty and the power to implement an excess hurricane loss surcharge on all property and casualty insurance premiums for insurance for property and operations in this state. "Premiums" shall not include premiums for workers' compensation coverage provided by self-insured funds or self-insured trust funds or premiums for coverage by or through self-insured plans administered by the State of Mississippi.

(3) If the surcharge is designed to repay bonds, it shall be designated as such and all funds recovered from the surcharge shall be used for repayment of the bonds for which it was implemented, until such time as the bonds have been paid or redeemed.

(4) If the surcharge is designed to repay a specific indebtedness incurred for losses from a specific hurricane, it shall be designated as such and all funds recovered from the surcharge shall be used for repayment of the indebtedness for which it was implemented, until such time as the indebtedness has been paid or redeemed.

(5) Such surcharge shall be specifically identified on either the premium statements or the policy declarations pages or other appropriate policy forms as relating to the specific hurricane losses or bonds or indebtedness for which it was implemented. The commissioner shall name each such surcharge such that it can be uniformly identified by insurers and brokers.

(6) The surcharge shall be a percentage of the total policy premium but the surcharge shall not be considered premium and is not subject to premium taxes or commissions. However, failure to pay the surcharge shall be treated the same as failure to pay premium. "Total policy premium" includes taxes and commissions.

(7) The commissioner shall implement an appropriate surcharge percentage sufficient to recover the amount necessary for repayment of bonds and indebtedness necessitated by a hurricane, or the resolution of other deficit, as applicable. If at any time such surcharge shall be insufficient, the commissioner shall increase the surcharge as necessary and appropriate. The commissioner shall cease surcharges as he determines appropriate funds have been collected.

(8) Each licensed insurer issuing insurance for property and casualty risks in the state and each broker for nonadmitted insurers, shall collect the surcharges established by the commissioner under the authority of this section. Funds collected by such licensed insurers and brokers for nonadmitted insurers as surcharges authorized by this section shall be collected and held in trust and shall be fully remitted to the association on a quarterly basis with forms providing appropriate information as designed by the association. Insurers and brokers shall remit such funds to the association within twenty (20) days after the end of each quarter. At such time the insurers and brokers shall further remit to the association all interest earned on the surcharge funds.

(9) The association and the commissioner are both specifically given the power to audit licensed insurers and brokers for nonadmitted insurersto confirm the accuracy of remittances of surcharges at the expense of the licensed insurers and brokers.

(10) The commissioner has the duty and power to adjust the percentage of any surcharge previously established as he finds appropriate taking into consideration any relevant factors, including, but not limited to, consolidation or replacement of bonds, any additional indebtedness resulting from a hurricane, the rate of recovery, anticipated length of total recovery, and impact of other hurricanes; however, the commissioner shall not reduce the amount of assessments implemented and designated to pay or redeem bonds, or other indebtedness below the amount necessary to timely pay or redeem such bonds, or other indebtedness.

(11) When the association knows or has reason to believe that surcharges authorized by this section previously established by the commissioner will be insufficient to timely pay or redeem bonds or indebtedness, the association shall immediately give notice to the commissioner. The commissioner shall alter such surcharge as necessary to timely pay or redeem bonds or pay other indebtedness.

(12) The association shall report quarterly to the commissioner providing all financial information for each surcharge authorized by this section, including:

(a) The original and current outstanding indebtedness of all bonds and loans;

(b) Total surcharge funds recovered to date; and

(c) Any information requested by the commissioner. (13) The commissioner may request, and the association shall provide, on an immediate basis to the commissioner any financial information or other information concerning any surcharge. This section shall not limit the reporting requirements provided by 83-34-25.

SECTION 25. The following shall be codified as Section 83-34-35, Mississippi Code of 1972:

83-34-35. In order to avoid or lessen the possibility and amount of surcharges authorized by this chapter, the commissioner shall approve rates for policies issued by the association at least adequate to fund annual reinsurance above a self-insured retention of One Hundred Million Dollars ($100,000,000.00) that, combined with any readily available reserves of the association, is sufficient to cover at least the probable maximum losses from a storm expected to occur once every one hundred (100) years as predicted by a model or method approved by the commissioner for the properties insured by the association at the time the reinsurance was negotiated. The amount of reinsurance in the forgoing rate adequacy requirement shall increase every two (2) years by increasing the probable maximum loss by five (5) years, until such time as the probable maximum loss insured is for a storm expected to occur every one hundred fifty (150) years. The commissioner may approve rates in excess of the minimums required by this section as consistent with his duties and the insurance laws of the State of Mississippi.

SECTION 26. This act shall take effect and be in force from and after its passage.