Senate Bill 2713

AN ACT TO CREATE THE DEPARTMENT OF INSURANCE TRANSPARENCY ACT; TO REQUIRE INSURANCE COMPANIES TRANSACTING BUSINESS IN THIS STATE TO SUBMIT HOMEOWNERS AND COMMERCIAL PROPERTY POLICY AND PREMIUM INFORMATION TO THE DEPARTMENT; TO REQUIRE THE DEPARTMENT TO PROVIDE ON ITS WEBSITE THE AGGREGATE AMOUNT OF DIRECT INCURRED LOSSES, THE NUMBER OF POLICIES WRITTEN, AND THE DIRECT EARNED PREMIUMS; TO REQUIRE THE DEPARTMENT TO POST ON ITS WEBSITE A GENERAL DESCRIPTION OF THE RATE-MAKING METHODOLOGY ALLOWED BY THE DEPARTMENT FOR HOMEOWNERS AND COMMERCIAL PROPERTY RISK; TO PROVIDE PENALTIES FOR NONCOMPLIANCE; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the Mississippi Department of Insurance Transparency Act.

SECTION 2. (1) Each insurance company transacting business in the State of Mississippi shall annually submit to the Mississippi Department of Insurance, on or before October 1, separately for homeowners and commercial property insurance policies, the total annual amount of direct incurred losses, the number of policies written, and the direct earned premiums for the prior calendar year. Aggregated totals shall be arranged by county and Zip Code.

(2) Based upon all submitted company reports, and other information submitted to or otherwise gathered by the department, the department shall compile and maintain a statewide database and shall post on the department website, separately for homeowners and commercial property insurance policies, the aggregate amount of direct incurred losses, the number of policies written, and the direct earned premiums, by county and Zip Code, by calendar year on or before January 15, 2012.

(3) The aggregate information compiled from the statewide database, and posted on the department website, shall be updated annually. The posted information shall include the aggregate amount of direct incurred losses, the number of policies written, and the direct earned premiums, by county and Zip Code, for each of the following perils:

(a) Noncatastrophe Wind/Hail;

(b) Catastrophe Wind/Hail; and

(4) The department shall also post on the department website a general description of the rate-making methodology that the department allows insurance companies to use in establishing their homeowners and commercial property rates.

(5) Each admitted insurance company transacting business in this state shall provide the information required by this act, relating to the total losses, premiums, and policies in each county by Zip Code, and their dollar value, by year, commencing with January 1, 1990. Based upon the submitted information, the department shall compile aggregate totals, pursuant to subsection (2), by year, commencing with 2006, and post those aggregate totals, by county and Zip Code, on the department website.

(6) (a) Upon written request of an insurance company, the commissioner may waive, or extend for an additional ninety (90) days, the October 1 reporting requirement imposed by this act. The request shall demonstrate a reasonable cause for giving or extending the deadline.

(b) Any insurance company granted a ninety-day extension that fails to comply on or before the ninetieth day shall be fined Two Thousand Five Hundred Dollars ($2,500.00) per day, by the department until the date of compliance. Any funds collected pursuant to this section shall be deposited into the State General Fund.

(c) Any insurance company failing to comply for more than thirty (30) days after extension shall immediately be suspended from selling new policies of insurance of any kind in this state until such time as the insurance company is in compliance.

SECTION 3. This act shall take effect and be in force from and after July 1, 2011.