House Bill 563

AN ACT TO SET FORTH THE MISSISSIPPI INSURANCE POLICYHOLDER BILL OF RIGHTS; AND FOR RELATED PURPOSES.

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

SECTION 1. The Mississippi State Legislature finds that:

(a) The geographic location and coastline bordering the Gulf of Mexico makes the State of Mississippi especially vulnerable to damages caused by hurricanes;

(b) The state, and particularly the Mississippi Gulf Coast, suffered enormous losses when Hurricane Katrina hit Mississippi on August 29, 2005;

(c) In multitudes of instances, the homes of Mississippi citizens were leveled to the ground leaving those homeowners with only the slabs of their former homes; and

(d) The response of insurance companies providing residential insurance coverage to those homeowners was disappointing in that many companies were reported to have relied on water damage exclusions contained in the policies to summarily deny coverage, alleging that the damages to the properties of such homeowners was caused by water and not wind.

Therefore, the Legislature is enacting the provisions of this act.

SECTION 2. The Commissioner of Insurance shall:

(a) Require each property and casualty insurer writing homeowners personal lines residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage, to attach a copy of the "Mississippi Insurance Policyholder Bill of Rights" specified in Section 3 of this act to any policy providing such coverage that is sold to any person in the state.

(b) Provide a toll-free telephone number, toll-free facsimile number and the necessary forms to contact the Mississippi Department of Insurance to obtain information about any of the rights specified in Section 3 of this act or to make a complaint based on any of the rights enumerated in Section 3 of this act.

(c) Make an annual report to all Mississippi residents, by means of Internet access or providing paper copies of the report to any resident requesting same, evaluating the performance of insurance companies offering the types of insurance described in paragraph (a), with regard to property claims based on damage incurred within the state, including the number of insurance claims paid, the total dollar amount of claims paid, the number of claims denied, the total dollar amount of claims denied and the number of claims filed against each such insurance company.

SECTION 3. The following shall be attached to every policy providing residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage, that is sold in this state:

"MISSISSIPPI INSURANCE POLICYHOLDER BILL OF RIGHTS

This Bill of Rights is a summary of your rights and does not become a part of your policy. The Mississippi Legislature adopted the Bill of Rights and requires insurance companies to provide you a copy when they issue your policy.

Mississippi law gives you certain rights regarding insurance companies providing residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage, that are regulated within the state. This Bill of Rights identifies your rights specified by this statute, but it does not include all your rights. If your agent, company or adjuster tells you that one (1) of these rights does not apply to you, contact the Mississippi Department of Insurance.

You have the right to call the department, free of charge at [insert toll-free telephone number of the Mississippi Department of Insurance] to learn more about:

· Your rights as an insurance consumer;

· The license status of an insurance company or agent;

· The financial condition of an insurance company;

· The complaint ratio and type of consumer complaints filed against an insurance company;

· The use of credit information by insurance companies, including which insurance companies use it and access to each company's credit scoring model;

· An insurance company's rates filed with the state;

· An insurance company's underwriting guidelines.

WHAT YOU SHOULD KNOW BEFORE YOU BUY INSURANCE

1. REPORTING CLAIMS INFORMATION. Mississippi Department of Insurance must produce an annual report on each insurance company doing business in the state on claims amounts filed, paid, and denied.

2. EQUAL TREATMENT. Unless based on sound actuarial principles, an insurance company may not treat you differently from other individuals of the same class and essentially the same hazard when evaluating a claim.

3. NOTICE OF PREMIUM INCREASE. If your insurer intends to increase your premium by ten percent (10%) or more upon renewal, the insurer must send you written notice of the rate increase at least thirty (30) days before your renewal date, or your policy renews at the same rate and coverage.

4. TIME FRAMES FOR CLAIM PROCESSING AND PAYMENT. When you file a claim on your own policy, you have the right to have your claim processed and paid promptly. Generally, within fifteen (15) calendar days, your insurance company must acknowledge receipt of your claim and request any additional information reasonably related to your claim. Within fifteen (15) business days after receipt of all requested information, the company must approve or deny your claim in writing. The insurance company may extend this deadline up to thirty (30) days if it notifies you that more time is needed and tells you why. After notifying you that your claim is approved, your insurance company must pay the claim within five (5) business days. If your claim results from a weather-related catastrophe or other major natural disaster as defined by the Commissioner of Insurance, your insurance company may take forty-five (45) additional calendar days to approve or deny your claim and fifteen (15) additional calendar days to pay your claim. The commissioner may suspend this right at any time if a disaster occurs in the state."

SECTION 4. This act shall take effect and be in force from and after July 1, 2010.