Bill Text: MS SB2501 | 2014 | Regular Session | Introduced
Bill Title: Property Insurance Clarity Act; create.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2014-02-04 - Died In Committee [SB2501 Detail]
Download: Mississippi-2014-SB2501-Introduced.html
MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Insurance
By: Senator(s) Wiggins, Tindell
Senate Bill 2501
AN ACT TO CREATE THE "PROPERTY INSURANCE CLARITY ACT"; TO REQUIRE INSURANCE COMPANIES AUTHORIZED TO TRANSACT HOMEOWNERS INSURANCE BUSINESS IN THE STATE TO PROVIDE POLICY AND PREMIUM INFORMATION TO THE INSURANCE DEPARTMENT; TO REQUIRE THE DEPARTMENT TO PROVIDE ON THE DEPARTMENT WEBSITE AGGREGATE INFORMATION FOR HOMEOWNERS INSURANCE POLICIES, PERTAINING TO THE NUMBER OF POLICIES IN FORCE AND THE DIRECT INCURRED LOSSES REPRESENTING THE TOTAL OF EVERY INSURANCE COMPANY DOING BUSINESS IN THE STATE; TO REQUIRE THE DEPARTMENT TO POST ON THE DEPARTMENT WEBSITE A COMPREHENSIVE DESCRIPTION OF THE ACTUARIAL MODEL USED BY THE DEPARTMENT FOR HOMEOWNERS PROPERTIES RISK AND OTHER RELATED DATA; TO PROVIDE PENALTIES FOR INSURANCE COMPANY 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 "Property Insurance Clarity Act."
SECTION 2. (1) Each insurance company authorized to transact homeowners insurance business in the State of Mississippi shall annually submit to the Mississippi Insurance Department, commencing on or before October 1, 2014, for homeowners insurance policies, computations of the total amount of direct incurred losses, the number of policies in force, and the direct earned premiums for the prior calendar year. The insurance company shall report the computations to the department by zip code. The information received by the department shall be aggregated across all insurance companies collectively and the aggregated totals shall be arranged by zip code. Homeowners insurance shall also include condominium insurance, dwelling fire policies, renters/tenants insurance, and mobile home/manufactured housing property insurance. Creditor—placed property insurance, condominium association insurance, and commercial insurance are excluded from this act.
(2) Based upon the information submitted to or otherwise gathered by the department, the department shall compile and post on the department website the aggregated total of the computations provided under subsection (1) of this section by zip code for the prior calendar year.
(3) Each insurance company authorized to transact homeowners insurance business in the state shall annually submit to the department, commencing on or before October 1, 2014, computations of the direct incurred losses and the number of policies in force, by zip code, by calendar year for the prior calendar year, for each of the following perils:
(a) Fire;
(b) All wind/hail; and
(c) All other perils.
(4) Each insurance company authorized to transact homeowners insurance business in the state shall submit to the department catastrophe wind/hail information pursuant to a data call by the department based on a specific catastrophic event.
SECTION 3. The Department of Insurance shall also post on its website a general description of the rate-making methodology that the department allows insurance companies to use in establishing their homeowners rates.
SECTION 4. Beginning on October 1, 2014, each insurance company authorized to transact homeowners insurance business in this state shall provide the information required pursuant to Section 2(1) of this act, commencing with the calendar year 2007. Voluntary submissions of the information required by Section 2(1) of this act for calendar years prior to 2007, may be submitted and shall be compiled and posted by the department in the same manner. Based upon the submitted information, the department shall compile aggregate totals, commencing with 2007, and post those aggregate totals on the department website pursuant to Section 2(2) of this act.
SECTION 5. (1) Upon written request of an insurance company, the Commissioner of Insurance may waive, modify, or extend for an additional time period, for good cause shown, the reporting requirements imposed by this act. The request shall demonstrate good cause for waiving, modifying, or extending the reporting requirements. Good cause may include, but is not limited to, the insurance company's limited percentage of the total homeowners insurance market in this state, or the undue burden of compiling and reporting the computations, data, and other information required by this act due to the manner, format, or method in which the insurance company has stored the computations, data, or other information required.
(2) Any insurance company that fails to timely comply with the reporting requirements imposed by this act shall be given notice by the department of such failure and provided ninety (90) days within which to comply. Any insurance company that fails to comply on or before the ninetieth day shall be fined Two Thousand Five Hundred Dollars ($2,500.00) per month by the department until the date of compliance. Any funds collected pursuant to this subsection shall be deposited into the State General Fund.
(3) The commissioner shall waive or modify the reporting requirements imposed under Section 4 of this act if an insurance company does not store the computations, data, or other information required; must materially upgrade, modify, redevise, or reprogram computer systems to provide the computations, data, or other information; or must significantly divert limited resources to provide the computations, data, or other information.
SECTION 6. Any information reported to the Department of Insurance by an insurer pursuant to this act is considered a commercially valuable trade secret and shall be confidential as provided by Section 75-71-607. However, once the information from all of the insurers is aggregated, then the department may provide such information in accordance with this act. The department, absent a court order, shall not release this confidential information. Notice of at least ten (10) business days shall be given to the applicable entity if such information is ordered to be provided by the department.
SECTION 7. This act shall take effect and be in force from and after July 1, 2014.
