House Bill 544

AN ACT TO AMEND SECTION 83-13-5, MISSISSIPPI CODE OF 1972, TO EXEMPT BUILDER'S RISK INSURANCE POLICIES FROM THE VALUED POLICY LAW; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 83-13-5, Mississippi Code of 1972, is amended as follows:

83-13-5. No insurance company shall knowingly issue any fire insurance policy upon property within this state for an amount which, together with any existing insurance thereon, exceeds a fair value of the property, nor for a longer term than five (5) years. When buildings and structures are insured against loss by fire and, situated within this state, are totally destroyed by fire, the company shall not be permitted to deny that the buildings or structures insured were worth at the time of the issuance of the policy the full value upon which the insurance is calculated, and the measure of damages shall be the amount for which the buildings and structures were insured. No insurance company or agent thereof shall be permitted to attach a three-quarter (3/4) value clause to insurance of this kind, and any fire insurance company or agent thereof who violates this section shall be guilty of a misdemeanor and shall, upon conviction, be fined not less than Two Hundred Dollars ($200.00) nor more than One Thousand Dollars ($1,000.00) for each offense. The provisions of this section shall not apply to any builder's risk insurance policy.

SECTION 2. This act shall take effect and be in force from and after its passage.