Bill Text: MS HB323 | 2018 | Regular Session | Engrossed
Bill Title: Homeowners insurance; provide premium discount or reduction for new homes built to resist windstorms.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2018-02-27 - Died In Committee [HB323 Detail]
Download: Mississippi-2018-HB323-Engrossed.html
MISSISSIPPI LEGISLATURE
2018 Regular Session
To: Insurance
By: Representatives Chism, Haney
House Bill 323
(As Passed the House)
AN ACT TO AMEND SECTION 83-75-1, MISSISSIPPI CODE OF 1972, TO PROVIDE AN INSURANCE PREMIUM DISCOUNT OR REDUCTION FOR HOMEOWNERS WHO BUILD A NEW HOME WITHIN THE STATE THAT BETTER RESISTS TORNADO OR OTHER CATASTROPHIC WINDSTORM EVENTS; 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 ( * * *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 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 January 1, 2019, 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 builds or locates a new 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 located in this state shall be certified
as constructed (a) in accordance with 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 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 Institute for Business and Home Safety certified 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
Certificate of Occupancy denoting compliance with the applicable building code
in subsection ( * * *3)(a)
of this section or valid certification from the Institute for Business and Home
Safety for compliance with the program described in subsection ( * * *3)(b) of this section.
( * * *5) 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 ( * * *3) 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. This act shall take effect and be in force from and after July 1, 2018.
