MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Insurance
By: Representatives DeLano, Monsour, Bennett, Eure, Patterson
AN ACT TO CREATE THE MISSISSIPPI WINDSTORM MITIGATION COORDINATING COUNCIL; TO PROVIDE THE MEMBERSHIP OF THE COUNCIL; TO PROVIDE FOR THE OPERATION OF THE COUNCIL; TO PROVIDE THAT THE MISSISSIPPI BUILDING CODES COUNCIL SHALL SERVE AS AN ADVISORY COUNCIL TO THE MISSISSIPPI WINDSTORM MITIGATION COORDINATING COUNCIL; TO CREATE THE "MISSISSIPPI WINDSTORM MITIGATION FUND" TO RECEIVE MONIES TO BE USED FOR THE PURPOSES OF ASSISTING THE MISSISSIPPI WINDSTORM MITIGATION COORDINATING COUNCIL IN DEVELOPING AND IMPLEMENTING A COMPREHENSIVE AND COORDINATED APPROACH FOR WINDSTORM MITIGATION; TO AMEND SECTION 83-34-5, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION TO DEPOSIT MONIES INTO THE MISSISSIPPI WINDSTORM MITIGATION FUND; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) There is created the Mississippi Windstorm Mitigation Coordinating Council for the purpose of developing and implementing a comprehensive and coordinated approach for windstorm mitigation. The council shall consist of the following:
(a) The Commissioner of Insurance, or his designee, to serve ex officio;
(b) The Chairman of the Board of Directors of the Mississippi Insurance Underwriting Association, or his designee, to serve ex officio;
(c) Two (2) members who are insurance providers appointed by the Governor, to serve at his will and pleasure;
(d) One (1) member who is a reinsurance provider appointed by the Governor, to serve at his will and pleasure;
(e) One (1) member who is an insurance agent or producer from the Coast Area, as defined under Section 83-34-1, appointed by the Governor, to serve at his will and pleasure;
(f) One (1) member from the Home Builders Association of Mississippi or the State Board of Contractors appointed by the Governor, to serve at his will and pleasure;
(g) One (1) nonvoting member from the Institute for Business and Home Safety appointed by the Governor, to serve at his will and pleasure;
(h) The Commissioner of Higher Education, or his designee, to serve ex officio, nonvoting;
(i) The Director of the Mississippi State Rating Bureau, or his designee, to serve ex officio, nonvoting; and
(j) The State Fire Marshal, or his designee, to serve ex officio, nonvoting.
(2) The Commissioner of Insurance shall convene the first meeting of the council within ninety (90) days of the effective date of this act and shall act as temporary chairman until the council elects from its members a chairman and vice chairman. The council shall adopt regulations consistent with this act, subject to the approval of the Commissioner of Insurance. A meeting may be called by the chairman on his own initiative and must be called by him at the request of three (3) or more members of the council. Each member must be notified by the chairman in writing of the time and place of the meeting at least seven (7) days before the meeting. Four (4) members constitute a quorum. Each meeting is open to the public. An official decision of the council may be made only by a vote of a majority of those members in attendance at the meeting.
(3) The Mississippi Building Codes Council created under Section 17-2-3 shall serve as an advisory council to the council created under this section.
(4) (a) There is created in the State Treasury a special fund to be designated as the "Mississippi Windstorm Mitigation Fund." The fund shall consist of monies appropriated by act of the Legislature and monies from any other public or private source designated for deposit into the 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 purposes of assisting the Mississippi Windstorm Mitigation Coordinating Council in developing and implementing a comprehensive and coordinated approach for windstorm mitigation including: providing grants, loans, funds for training local officials or providing any other assistance consistent with these purposes.
SECTION 2. 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:
(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;
(c) To purchase reinsurance for all or part of the risks of the association;
(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; * * *
(h) To deposit monies of the association into the Mississippi Windstorm Mitigation Fund created under Section 1 of this act; and
(i) All other powers necessary to carry out the provisions and intent of this chapter.
SECTION 3. This act shall take effect and be in force from and after July 1, 2011.