Senate Bill 2203

AN ACT TO PROVIDE THAT THE COMMISSIONER OF INSURANCE, UPON REQUEST BY AN APPLICANT FOR INSURANCE OR A POLICYHOLDER, SHALL REQUIRE AN INSURER TO PROVIDE A WRITTEN STATEMENT OF REASONS FOR THE DECLINATION, CANCELLATION OR NONRENEWAL OF AN INSURANCE POLICY; AND FOR RELATED PURPOSES.

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

      SECTION 1.  Written statement of reasons for declination, cancellation or nonrenewal.  (1)  The Commissioner of Insurance shall require an insurer, upon request by an applicant for insurance or a policyholder, to provide to the applicant or policyholder a written statement of the reasons for the declination, cancellation or nonrenewal of an insurance policy.

(2) An insurer's written statement giving the reasons for the declination, cancellation or nonrenewal of an insurance policy shall fully explain a decision that adversely affects an applicant for insurance or a policyholder by denying the applicant or policyholder insurance coverage or continued coverage.

(3) The statement shall:

(a) State the precise incident, circumstance or risk factors applicable to the applicant for insurance or the policyholder that violates any applicable guidelines;

(b) State the source of information on which the insurer relied regarding the incident, circumstance or risk factors; and

(4) The commissioner shall adopt rules as necessary to implement this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 2011.