MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Insurance
By: Representatives Peranich, Bennett, Jones (111th)
AN ACT TO REQUIRE THE COMMISSIONER OF INSURANCE TO ESTABLISH THE MISSISSIPPI HOMEOWNERS INSURANCE POLICYHOLDER BILL OF RIGHTS; TO PROVIDE THAT, IN ANY ACTION FOR DAMAGES BY THE POLICYHOLDER AGAINST AN INSURER UNDER A HOMEOWNERS POLICY, THE INSURER HAS THE BURDEN OF PROOF AS TO THE APPLICATION OF ANY EXCLUSION IN THE POLICY AND ANY EXCEPTION TO OR OTHER AVOIDANCE OF COVERAGE BY THE INSURER; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The Commissioner of Insurance shall promulgate reasonable rules and regulations establishing a "Mississippi Homeowners Insurance Policyholder Bill of Rights" that sets forth rights that Mississippi policyholders have with respect to their homeowners personal lines residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage. The Mississippi Homeowners Insurance Policyholder Bill of Rights must include a provision establishing reasonable time frames for the processing and payment of homeowners insurance claims. In addition to the rights that are specified by the commissioner and the provision regarding reasonable time frames, the Mississippi Homeowners Insurance Policyholder Bill of Rights must include the following provisions:
(a) Unless based on sound actuarial principles, an insurance company may not treat a policyholder differently from other individuals of the same class and essentially the same hazard when evaluating a claim.
(b) If an insurer intends to increase a policyholder's premium by ten percent (10%) or more upon renewal, the insurer must send the policyholder written notice of the rate increase at least thirty (30) days before the renewal date, or the policy shall renew at the same rate and coverage.
(c) If a policyholder sues to recover under the insurance policy, the insurance company has the burden of proof as to the application of any exclusion in the policy and any exception to or other avoidance of coverage claimed by the insurer.
SECTION 2. No homeowners personal lines residential insurance policy, including renters/tenants insurance and mobile home/manufactured housing property coverage, shall be delivered, issued for delivery or renewed in this state unless a copy of the Mississippi Homeowners Insurance Policyholder Bill of Rights, as promulgated by the Commissioner of Insurance, is included with the policy.
SECTION 3. (1) In any civil action against a property and casualty insurer under an insurance policy providing homeowners personal lines residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage, by the policyholder under the policy for failure of the insurer to pay a lawful claim made under the policy, including any damages related to the failure to pay, the insurer has the burden of proving by a preponderance of evidence that any exclusion in the policy, and any exception to or other avoidance of coverage by the insurer, applies to the cause of action.
(2) The provisions of this section shall apply to any action filed on or after July 1, 2010, regardless of the date that the cause of such action may have accrued.
SECTION 4. This act shall take effect and be in force from and after July 1, 2010.