House Bill 1170

(As Passed the House)

AN ACT TO AMEND SECTION 83-3-24, MISSISSIPPI CODE OF 1972, TO ESTABLISH THE RESPONSE DISTANCE FROM A FIRE STATION THAT MUST BE UTILIZED BY THE MISSISSIPPI STATE RATING BUREAU WHEN GRADING MUNICIPALITIES OR FIRE DISTRICTS FOR FIRE INSURANCE RATING PURPOSES; TO REQUIRE THE COMMISSIONER OF INSURANCE TO ADOPT RULES AND REGULATIONS REQUIRING THE RATING BUREAU TO CONSIDER ALL SOURCES OF WATER WHEN GRADING FIRE DEPARTMENTS; TO REQUIRE THE COMMISSIONER TO ADOPT RULES AND REGULATIONS GOVERNING THE SALE OF FIRE TRUCKS; TO AMEND SECTION 83-2-7, MISSISSIPPI CODE OF 1972, TO REQUIRE THE COMMISSIONER TO ADOPT RULES AND REGULATIONS PROHIBITING INSURERS FROM ADJUSTING RATES ABOVE THE BASE RATES DEVELOPED BY THE RATING BUREAU; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 83-3-24, Mississippi Code of 1972, is amended as follows:

83-3-24. (1) When rating a municipality or fire district, including evaluations of rural or volunteer fire departments, the Rating Bureau shall consider the mileage, condition and maintenance of the fire trucks rather than the age of the fire trucks. For the purpose of grading municipalities or fire districts, including rural and volunteer fire departments, and awarding credits that are considered in determining an overall fire rating based upon the condition of their fire trucks, the Rating Bureau shall publish guidelines for use in the grading of fire trucks not later than January 30 of the calendar year during which the Rating Bureau will apply the guidelines. These guidelines shall be published and made available to each municipality and fire district, including rural and volunteer fire departments, on the Rating Bureau's website not later than January 30 of the calendar year during which the Rating Bureau will apply the guidelines. If a fire truck in a municipality or fire district, including rural and volunteer fire departments, satisfies the guidelines, then the Rating Bureau shall not recommend the replacement of the fire truck before the next grading process.

(2) (a) For the purpose of grading fire departments, the alternative water supply standard shall be two hundred fifty (250) gallons per minute for a sustained period of one (1) hour.

(b) The Commissioner of Insurance shall adopt rules and regulations requiring the Rating Bureau to consider all sources of water, including alternative water supplies such as ponds, lakes and rivers, for the purpose of grading fire departments.

(3) For the purpose of grading municipalities or fire districts, including rural and volunteer fire departments, the response distance from a fire station used by the Rating Bureau must be no less than seven and one-half (7 1/2) road miles.

SECTION 2. The Commissioner of Insurance shall adopt rules and regulations governing the sale of fire trucks in the State of Mississippi. The rules and regulations shall establish the process by which a county, municipality or fire protection district may sell a fire truck, whether voluntarily or necessitated by a need to replace or retire the apparatus, which grants other counties, municipalities and fire protection districts in the state an opportunity to purchase the fire truck being sold before it is made available for purchase to entities located outside the state. The commissioner shall include such provisions as may be necessary to balance the aim of achieving the best possible price for the sale of a fire truck with the fire protection needs of other areas of the state.

SECTION 3. Section 83-2-7, Mississippi Code of 1972, is amended as follows:

83-2-7. (1) Except as provided in Section 83-2-9 and subsections (2), (3) and (5) of this section, every insurer shall file with the commissioner all rates, supplementary rate information, policy forms and endorsements at least thirty (30) days prior to the proposed effective date which shall be stated in the filing. Rates, supplementary rate information, policy forms and endorsements need not be filed for inland marine risks which by general custom of the business are not written according to manual rules or rating plans. Upon the request of the commissioner, supporting information shall also be filed. Any filing made under this section is deemed to be approved unless disapproved by the Commissioner of Insurance within thirty (30) days after the date of filing.

(2) A filing of adjustments of rates for existing rating systems made under this section which does not involve a change in the relationship between such rates and the expense portion thereof or does not involve a change of the element of expenses which are paid as a percentage of premiums and does not involve a change in rate relativities among such classifications on any basis other than loss experience is effective on the date specified in the filing which shall not be less than thirty (30) days after the filing is made and shall be deemed to meet the requirements of this chapter.

(3) The commissioner may give written notice within thirty (30) days of the receipt of the filing that additional time, not to exceed sixty (60) days from the date of such notice, is necessary to consider the filing. A filing is deemed to meet the requirements of this chapter and becomes effective unless disapproved by the commissioner before the expiration of the waiting period or an extension thereof. Whenever a filing made under this section is not accompanied by sufficient supporting information, the commissioner shall inform the filing entity as to what information is required to complete the filing. The filing shall not be deemed to be completed until such information is furnished.

(4) No insurance company shall make or issue a contract or policy except in accordance with filings made with the commissioner, if such filings are required.

(5) Subject to the provisions of subsections (6), (7) and (8) of this section, rates and supplementary rate information for the following commercial lines insurance coverages shall be exempt from filing and approval requirements. However, the rates shall remain subject to the standards set forth in Section 83-2-3. Policy forms and endorsements for the following commercial lines insurance coverages must be filed with the commissioner within sixty (60) days of use for informational purposes only:

(a) Surety and Fidelity;

(b) Boiler and Machinery;

(d) Kidnap and Ransom;

(e) Political Risk or Expropriation;

(f) Excess and Umbrella Liability;

(g) Employment Practices Liability;

(h) Media Liability;

(i) Product Liability, Product Recall, and Completed Operations;

(j) Highly Protected Commercial Property; and

(k) Any other commercial lines insurance coverage or risk that the commissioner shall, pursuant to regulation, exempt from rate, rate supplementary information, or policy form filing requirements in order to promote enhanced competition or to more effectively use the resources of the department that might otherwise be used to review commercial lines filings.

(6) If a commercial lines insurance rate, policy form or endorsement is determined not to comply with the requirements of Mississippi law, the commissioner may issue an order specifying in detail how the rate, policy form, or endorsement fails to meet statutory requirements and further specifying a prospective date after which the rate or form may not be used. The commissioner's findings shall not affect policies in force prior to the date specified in the order. As part of such an order, the commissioner may require the insurer subject to the order to submit a filing for approval by the commissioner of a new rate or policy form, if any, that will replace the discontinued rate or policy form.

(7) The commissioner may temporarily reinstate, for a period of no longer than one (1) year, the filing and approval requirements for rate, rate supplementary information, or policy form for a specific type of commercial lines insurance if, after a hearing, the commissioner makes a finding of fact that a reasonable degree of competition does not exist for that specific type of insurance coverage. Such a finding of fact by the commissioner must specify the relevant tests used to determine whether a lack of a reasonable degree of competition exists and the results thereof. In the absence of such specific findings of fact by the commissioner, it shall be presumed that a competitive market exists.

(8) For purposes of this section, commercial lines insurance means property and casualty insurance for any risk that is not a personal or family risk, but shall not include workers' compensation, medical malpractice liability, creditor-placed insurance or any insurance issued by residual market mechanisms or assigned risk plans.

(9) The commissioner shall adopt such rules and regulations as may be necessary to prohibit insurers from adjusting any rate above the base rates developed by the Mississippi State Rating Bureau.

SECTION 4. This act shall take effect and be in force from and after July 1, 2026.