MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Insurance
By: Senator(s) Michel
AN ACT TO AMEND SECTIONS 83-75-1, 83-75-3 AND 83-75-5, MISSISSIPPI CODE OF 1972, TO INCLUDE COMMERCIAL PROPERTY IN THE INSURANCE PREMIUM DISCOUNT OR RATE REDUCTION FOR HURRICANE OR WINDSTORM DAMAGE MITIGATION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-75-1, Mississippi Code of 1972, is amended as follows:
83-75-1. (1) Not later
than July 1, 2013, insurance companies shall provide a premium discount or
insurance rate reduction in an amount and manner as established in subsection ( * * *6) of this section and according to
Section 83-75-5. In addition, insurance companies may also offer additional
adjustments in deductible, other credit rate differentials, or a combination
thereof, collectively referred to as adjustments. These adjustments shall be
available under the terms specified in this section to any owner who builds or
locates a new insurable property in Harrison, Hancock, Jackson, Stone and Pearl
River Counties, to resist loss due to hurricane or other catastrophic windstorm
events.
(2) Not later than July 1,
2019, insurance companies shall provide a premium discount or insurance rate
reduction for new residential insurable property in an amount and manner
as established in subsection ( * * *6) of this section and according to
Section 83-75-5. In addition, insurance companies may also offer additional
adjustments in deductible, other credit rate differentials, or a combination
thereof, collectively referred to as adjustments. These adjustments shall be
available under the terms specified in this section to any owner who builds or
locates a new residential insurable property to resist loss due to
tornado or other catastrophic windstorm events in any county located in the
State of Mississippi.
(3) Not later than July 1, 2021, insurance companies shall provide a premium discount or insurance rate reduction for new commercial insurable property in an amount and manner as established in subsection (6) of this section and according to Section 83-75-5. In addition, insurance companies may also offer additional adjustments in deductible, other credit rate differentials, or a combination thereof, collectively referred to as adjustments. These adjustments shall be available under the terms specified in this section to any owner who builds or locates a new commercial insurable property to resist loss due to hurricane, tornado or other catastrophic windstorm events in any county located in the State of Mississippi.
( * * *4) To obtain the adjustment provided
in this section, an insurable property located in this state shall be certified
as constructed * * *
in accordance with (a) the 2006 or newer version of the International
Residential Code, as amended, including the entire coastal construction
supplement as recommended by the Mississippi Windstorm Mitigation Coordination
Council; or (b) the Fortified for Safer Living or similar programs adopted by
the Insurance Institute for Business and Home Safety; or (c) any other
mitigation program recommended by the Mississippi Windstorm Mitigation
Coordination Council and approved by the Commissioner of Insurance. An
insurable property shall be certified as conforming to the applicable building
codes only after an evaluation of the insurable property has been
satisfactorily completed by a building official or a certified and licensed
building evaluator. An insurable property shall be certified as conforming to
Fortified for Safer Living criteria only after evaluation and certification by an
Insurance Institute for Business and Home Safety certified evaluator.
( * * *5) An owner of insurable property
claiming an adjustment under this section shall maintain sufficient
certification records and construction records including, but not limited to, a
Certificate of Occupancy denoting compliance with the applicable building code
in subsection ( * * *4)(a)
of this section or valid certification from the Insurance Institute for
Business and Home Safety for compliance with the program described in
subsection ( * * *4)(b)
of this section.
( * * *6) Insurers required to submit rates
and rating plans to the commissioner shall submit an actuarially justified
rating plan for any person who builds an insurable property to comply with the
sets of requirements of subsection ( * * *4) of this section. An insurer is not
required to provide the same amount of adjustment for a building code insurable
property as the insurer would to a Fortified for Safer Living insurable
property. An adjustment shall only apply to policies that provide wind
coverage and may apply to that portion of the premium for wind coverage or to
the total premium if the insurer does not separate out its premium for wind
coverage in its rate filing. The adjustment shall apply exclusively to the
premium designated for the improved insurable property. In addition to the
requirements of this section, an insurer may voluntarily offer any other
mitigation adjustment that the insurer deems appropriate.
SECTION 2. Section 83-75-3, Mississippi Code of 1972, is amended as follows:
83-75-3. (1) Not later
than July 1, 2013, insurance companies shall provide a premium discount or
insurance rate reduction in an amount and manner as established in subsection ( * * *5) of this section and according to
Section 83-75-5. In addition, insurance companies may also offer additional
adjustments in deductible, other credit rate differentials, or
a combination thereof, collectively referred to as adjustments. These adjustments shall be available under the terms specified in this section to any owner who retrofits his or her insurable property in Harrison, Hancock, Jackson, Stone and Pearl River Counties to resist loss due to hurricane or other catastrophic windstorm events.
(2) Not later than July 1, 2021, insurance companies shall provide a premium discount or insurance rate reduction in an amount and manner as established in subsection (5) of this section and according to Section 83-75-5. In addition, insurance companies may also offer additional adjustments in deductible, other credit rate differentials, or a combination thereof, collectively referred to as adjustments. These adjustments shall be available under the terms specified in this section to any owner who retrofits existing commercial insurable property to resist loss due to tornado or other catastrophic windstorm events in any county located in the State of Mississippi.
( * * *3) To obtain the adjustment provided
in this section, an insurable property shall be retrofitted to one (1) of
the tiered mitigation levels as defined * * * by the Insurance Institute for
Business and Home Safety, or other mitigation program, or other construction
technique, or standardized code that is recommended by the Mississippi
Windstorm Mitigation Coordination Council and approved by the Commissioner of
Insurance. Zone three HUD code manufactured homes installed to specifications
and regulations promulgated by the Commissioner of Insurance shall be
considered. An insurable property shall be certified as conforming to
Fortified for Safer Homes requirements only after evaluation and certification
by an Insurance Institute for Business and Home Safety certified
evaluator. Certification of conformity of an insurable property with the other
mitigation program, other construction technique, or other standardized code
shall be made only by a building official or other certified or licensed
building evaluator.
( * * *4) An owner of insurable property
claiming an adjustment under this section shall maintain sufficient
certification records and construction records including, but not limited to, a
certification of compliance with an approved mitigation program as promulgated
by the Mississippi Windstorm Mitigation Coordination Council and approved by
the Commissioner of Insurance or valid certification from the Insurance
Institute for Business and Home Safety for compliance with a program described
in subsection ( * * *3)
of this section.
( * * *5) Insurers required to submit rates
and rating plans to the commissioner shall submit actuarially justified rating
plans for any person who retrofits an insurable property to comply with the
sets of alternatives provided in subsection ( * * *3) of this section. The adjustment
shall only apply to policies that provide wind coverage and may apply to that
portion of the premium for wind coverage or to the total premium if the insurer
does not separate out its premium for wind coverage in its rate filing. The
adjustment shall apply exclusively to the premium designated for the improved
insurable property. In addition to the requirements of this section, an
insurer may voluntarily offer any other mitigation adjustment that the insurer
deems appropriate.
SECTION 3. Section 83-75-5, Mississippi Code of 1972, is amended as follows:
[Until July 1, 2021, this section shall read as follows:]
83-75-5. For the purposes
of this chapter, the term "insurable property" includes single-family
residential property. "Insurable property" also includes modular
homes satisfying the codes, standards, or techniques as provided in Section 83-75-1
or 83-75-3. Manufactured homes or mobile homes are excluded from
"insurable property," except as expressly provided in Section 83-75-3( * * *3).
[From and after July 1, 2021, this section shall read as follows:]
83-75-5. For the purposes
of this chapter, the term "insurable property" includes single-family
residential and commercial property. "Insurable property"
also includes modular homes satisfying the codes, standards, or techniques as
provided in Section 83-75-1 or 83-75-3. Manufactured homes or mobile homes are
excluded from "insurable property," except as expressly provided in
Section 83-75-3( * * *3).
SECTION 4. This act shall take effect and be in force from and after July 1, 2020.