MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Insurance

By: Representative Baria

House Bill 439

AN ACT TO AMEND SECTION 83-34-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION MUST WRITE POLICIES ON HOMES WITH A FORTIFIED HOME DESIGNATION BY THE INSTITUTE FOR BUSINESS AND HOME SAFETY; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 83-34-5, Mississippi Code of 1972, is amended as follows:

     83-34-5.  (1)  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 enter into contractual agreements with third parties, including the Mississippi Windstorm Mitigation Coordinating Council, for the purposes of developing and implementing windstorm mitigation programs; and

          (i)  All other powers necessary to carry out the provisions and intent of this chapter.

     (2)  The association must write property and casualty insurance policies on homes with a FORTIFIED Home designation as certified by the Institute for Business and Home Safety.  Licensed architects, engineers or inspectors certified by the insurance department shall determine whether a dwelling meets the criteria for a "fortified home" pursuant to the Institute for Business and Home Safety.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2019.