Bill Text: MS HB1721 | 2026 | Regular Session | Introduced
Bill Title: Additional Living Expense Fairness and Expedited Closure Adjudicaiton Act; create.
Sponsorship: Partisan Bill (Republican 2)
Status: (Failed) 2026-02-03 - Died In Committee [HB1721 Detail]
Download: Mississippi-2026-HB1721-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Insurance
By: Representatives Turner, Ford (54th)
House Bill 1721
AN ACT TO BE KNOWN AS THE "ADDITIONAL LIVING EXPENSE (ALE) FAIRNESS AND EXPEDITED CLOSURE ADJUDICATION ACT"; TO DECLARE THAT THE LEGISLATIVE PURPOSE OF THE ACT IS TO ESTABLISH A PROCESS ADMINISTERED BY THE DEPARTMENT OF INSURANCE TO ENSURE TIMELY AND SUFFICIENT ADDITIONAL LIVING EXPENSE BENEFITS ARE PAID TO INSURED PARTIES UNDER RESIDENTIAL AND SMALL COMMERCIAL POLICIES; TO DEFINE CERTAIN TERMS, INCLUDING "ALE"; TO GRANT THE COMMISSIONER OF INSURANCE EXCLUSIVE JURISDICTION TO ADJUDICATE DISPUTES REGARDING ALE MATTERS; TO AUTHORIZE INSURERS AND INSURED PARTIES TO INSTITUTE A PETITION; TO REQUIRE THE EXPEDITED TIME FOR ADDRESSING PETITIONS; TO AUTHORIZE THE COMMISSIONER TO ISSUE AN INTERIM ALE ORDER TO PREVENT HARDSHIP; TO PRESCRIBED STANDARDS FOR ADJUDICATING DISPUTES; TO GRANT THE COMMISSIONER CERTAIN POWERS IN ISSUING ORDERS; TO PROVIDE THAT ORDERS SETTLING ALE DISPUTES ARE BINDING UNLESS A REHEARING IS GRANTED OR THE ORDER IS APPEALED TO A COURT OF COMPETENT JURISDICTION; TO AUTHORIZE THE COMMISSIONER TO PROMULGATE RULES NECESSARY FOR THE ENFORCEMENT OF THIS ACT; 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 "Additional Living Expense Fairness and Expedited Closure Adjudication Act."
SECTION 2. The purposes of this act are to:
(a) Ensure timely and sufficient ALE, as defined in Section 3 of this act, for displaced insureds following covered property losses;
(b) Prevent avoidable delays that prolong displacement and obstruct claim closure;
(c) Create a uniform, fast and fair adjudication process administered by the Department of Insurance; and
(d) Provide balanced protections to both insureds and insurers, including reasonable documentation standards, mitigation obligations, and prompt resolution of disputes.
SECTION 3. As used in this act, the following words and phrases have the meanings provided in this section unless the context clearly requires otherwise:
(a) "ALE" means additional living expense or loss of use benefits under a residential or small commercial property policy, including reasonable increased living expenses or fair rental value as provided by the policy.
(b) "Commissioner" means the Commissioner of Insurance, or the commissioner's designated hearing officer or administrative law judge.
(c) "Covered loss" means a loss for which coverage is accepted in whole or in part, or for which coverage is reasonably in dispute but not denied with specificity in writing.
(d) "Department" means the Department of Insurance.
(e) "Displacement" means the insured premises is uninhabitable, unsafe or inaccessible due to a covered loss.
(f) "Petition" means a petition for ALE adjudication and expedited closure filed under this act.
SECTION 4. (1) Notwithstanding any other provision of law, the commissioner has exclusive original jurisdiction to adjudicate disputes concerning:
(a) ALE eligibility due to displacement;
(b) ALE sufficiency relating to amount, budget, reasonableness of housing and related costs;
(c) ALE payment timing and whether undisputed or minimum amounts must be advanced pending final resolution;
(d) Disputes over documentation requirements that materially delay ALE; and
(e) Claim-closure delays where ALE is a material driver of non-closure.
(2) A party may not file or maintain a civil action seeking judicial determination of the matters listed in subsection (1) of this section unless that party has first exhausted the adjudication process under this act; however, this act does not limit a court's authority to enforce a final department order after exhaustion. Further, this act does not bar civil actions on other claim issues not within subsection (1), except that the court shall stay ALE issues pending completion of the administrative adjudication.
SECTION 5. (1) The insured or the insurer may file a petition.
(2) A petition may be filed upon any of the following:
(a) The insured asserts displacement and requests ALE, and the insurer fails to make a provisional ALE determination within three (3) business days;
(b) The insurer fails to tender undisputed ALE within five (5) business days after receiving information reasonably sufficient to calculate such undisputed amount;
(c) A dispute exists regarding the reasonableness of temporary housing, household needs, duration or categories of ALE;
(d) The insurer conditions ALE payment on documentation that is not reasonably available in the circumstances; or
(e) The claim has not closed and ALE issues materially contribute to delay for thirty (30) days after displacement begins.
SECTION 6. (1) The department shall docket a petition within two (2) business days of receipt.
(2) The commissioner shall hold an informal conference, either telephonic or virtual, within seven (7) business days after docketing.
(3) The commissioner shall issue a written order within five (5) business days after the conference, unless extended for good cause stated in writing.
(4) The department shall maintain an administrative record sufficient for judicial review.
SECTION 7. (1) The commissioner may issue an interim ALE order to prevent hardship or avoid displacement interruption.
(2) Upon a showing that displacement is more likely than not or is undisputed, in whole or in part, due to a covered loss, the commissioner shall order the insurer to tender minimum immediate ALE funding sufficient to avoid interruption of shelter and essential needs while the dispute is pending. In setting minimum funding, the commissioner shall consider:
(a) Local market rental and hotel rates reasonably comparable for household size and needs;
(b) Displacement conditions and availability constraints;
(c) The insured's duty to mitigate and choose reasonable alternatives when feasible; and
(d) The policy's ALE limit and remaining available benefits.
(3) At the insured's request, the commissioner may order direct payment to vendors such as a landlord, hotel or storage facility where doing so materially prevents displacement interruption.
SECTION 8. In adjudicating ALE and closure disputes, the commissioner shall apply the policy terms and the following standards:
(a) Reasonableness and necessity. ALE must be allowed when reasonable and necessary to maintain a reasonably normal standard of living during displacement, consistent with the policy.
(b) Documentation � best available standard. For the first sixty (60) days after displacement begins, the insured may satisfy documentation through best available evidence, including attestation under penalty of perjury, vendor quotes, listings, confirmations and partial receipts. The insurer may request additional documentation thereafter, but must make such requests specific, consolidated and reasonable.
(c) Undisputed amounts. The insurer shall pay undisputed ALE immediately, even if other components remain disputed.
(d) Insured cooperation. The insured shall cooperate reasonably, provide truthful information, and promptly supplement documentation as available.
(e) Mitigation. The insured must take reasonable steps to mitigate ALE, and the insurer must timely provide workable options, including direct pay, when offered as a condition of mitigation.
SECTION 9. The commissioner may issue any order necessary to ensure fair ALE handling and to expedite closure, including:
(a) Ordering payment of undisputed ALE by a date certain;
(b) Establishing a biweekly or monthly ALE payment schedule during displacement;
(c) Setting a binding ALE budget or rate parameters for temporary housing;
(d) Resolving disputes over household size needs, special needs accommodations, pets where reasonably necessary, storage, and related categories covered by the policy;
(e) Requiring production of relevant non-privileged claim materials directly bearing on ALE calculation and delay, including worksheets, vendor program rules, and communications;
(f) Setting deadlines for remaining proofs and insurer responses; and
(g) Issuing a closure order requiring specified actions to bring the ALE portion of the claim to closure and to remove ALE as an impediment to overall claim closure.
SECTION 10. (1) An order issued under this act is binding on the parties unless modified on rehearing or stayed by a court under Section 11 of this act.
(2) Failure to comply with an order constitutes an unfair claims practice subject to administrative penalties under the commissioner's existing enforcement authority.
(3) Past-due ordered payments accrue interest at a rate to be specified by the commissioner from the date due.
(4) If the commissioner finds an insurer or insured willfully failed to comply with an order or acted to obstruct the expedited process without substantial justification, the commissioner may award the other party reasonable attorney's fees and costs incurred in the administrative proceeding.
SECTION 11. (1) A party may move for a rehearing within ten (10) days of an order, stating specific grounds. The commissioner shall rule of the party's motion no later than ten (10) days after its receipt.
(2) A final order is subject to judicial review under Mississippi administrative procedure principles in the appropriate court.
(3) Filing for judicial review does not automatically stay the portion of an order requiring payment of:
(a) Undisputed ALE; or
(b) Minimum immediate ALE funding necessary to prevent displacement interruption, unless the reviewing court expressly grants a stay upon a showing of irreparable harm and likelihood of success.
SECTION 12. The commissioner may promulgate rules, forms and procedures necessary to implement this act, including standardized:
(a) ALE displacement attestations;
(b) ALE worksheets and budget formats; and
(c) Petition and expedited conference procedures.
SECTION 13. If any provision of this act is held invalid, the remaining provisions shall not be affected.
SECTION 14. This act shall take effect and be in force from and after July 1, 2026.
