Bill Text: MS HB783 | 2011 | Regular Session | Engrossed
Bill Title: Insurance; revise uninsured motorist coverage law and require Commissioner of Insurance to establish homeowners bill of rights.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Failed) 2011-03-01 - Died In Committee [HB783 Detail]
Download: Mississippi-2011-HB783-Engrossed.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Insurance
By: Representatives Robinson, DeLano, Bennett
House Bill 783
(As Passed the House)
AN ACT TO REQUIRE THE COMMISSIONER OF INSURANCE TO ESTABLISH THE MISSISSIPPI HOMEOWNERS INSURANCE POLICYHOLDER BILL OF RIGHTS; TO PROVIDE THAT, IN ANY ACTION FOR DAMAGES BY THE POLICYHOLDER AGAINST AN INSURER UNDER A HOMEOWNERS POLICY, THE INSURER HAS THE BURDEN OF PROOF AS TO THE APPLICATION OF ANY EXCLUSION IN THE POLICY AND ANY EXCEPTION TO OR OTHER AVOIDANCE OF COVERAGE BY THE INSURER; TO AMEND SECTION 83-11-101, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT AN INSURER OF AUTOMOBILE LIABILITY COVERAGE MUST PROVIDE THE INSURED WITH WRITTEN NOTICE STATING THAT THE UNINSURED MOTORIST LIMITS MAY BE INCREASED UP TO THE BODILY INJURY LIABILITY COVERAGE LIMITS; TO PROVIDE THAT THE INSURER MUST HAVE THE INSURED SIGN AND DATE THAT WRITTEN NOTICE WHEN THE INSURED FIRST OBTAINS COVERAGE, BUT NOT UPON RENEWAL; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The Commissioner of Insurance shall promulgate reasonable rules and regulations establishing a "Mississippi Homeowners Insurance Policyholder Bill of Rights" that sets forth rights that Mississippi policyholders have with respect to their homeowners personal lines residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage. The Mississippi Homeowners Insurance Policyholder Bill of Rights must include a provision establishing reasonable time frames for the processing and payment of homeowners insurance claims. In addition to the rights that are specified by the commissioner and the provision regarding reasonable time frames, the Mississippi Homeowners Insurance Policyholder Bill of Rights must include the following provisions:
(a) Unless based on sound actuarial principles, an insurance company may not treat a policyholder differently from other individuals of the same class and essentially the same hazard when evaluating a claim.
(b) If an insurer intends to increase a policyholder's premium by ten percent (10%) or more upon renewal, the insurer must send the policyholder written notice of the rate increase at least thirty (30) days before the renewal date, or the policy shall renew at the same rate and coverage.
(c) If a policyholder sues to recover under an all-risk or all-perils insurance policy, the insurance company has the burden of proof as to the application of any exclusion in the policy and any exception to or other avoidance of coverage claimed by the insurer.
SECTION 2. No homeowners personal lines residential insurance policy, including renters/tenants insurance and mobile home/manufactured housing property coverage, shall be delivered, issued for delivery or renewed in this state unless a copy of the Mississippi Homeowners Insurance Policyholder Bill of Rights, as promulgated by the Commissioner of Insurance, is included with the policy.
SECTION 3. (1) In any civil action against a property and casualty insurer under an all-risk or all-perils insurance policy providing homeowners personal lines residential insurance property coverage, including renters/tenants insurance and mobile home/manufactured housing property coverage, by the policyholder under the policy for failure of the insurer to pay a lawful claim made under the policy, including any damages related to the failure to pay, the insurer has the burden of proving by a preponderance of evidence that any exclusion in the policy, and any exception to or other avoidance of coverage by the insurer, applies to the cause of action.
(2) The provisions of this section shall apply to any action filed on or after July 1, 2011, regardless of the date that the cause of such action may have accrued.
SECTION 4. Section 83-11-101, Mississippi Code of 1972, is amended as follows:
83-11-101. (1) No automobile liability insurance policy or contract shall be issued or delivered after January 1, 1967, unless it contains an endorsement or provisions undertaking to pay the insured all sums which he shall be legally entitled to recover as damages for bodily injury or death from the owner or operator of an uninsured motor vehicle, within limits which shall be no less than those set forth in the Mississippi Motor Vehicle Safety Responsibility Law, as amended, under provisions approved by the Commissioner of Insurance; however, at the option of the insured, the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of bodily injury liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The insurer must provide the insured with written notice, when coverage is obtained and renewed, that the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of bodily injury liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The insurer must have the insured sign and date a copy of the written notice when the coverage is obtained, but not upon renewal, and retain the signed and dated copy along with the insured's application for insurance. The coverage herein required shall not be applicable where any insured named in the policy shall reject the coverage in writing and provided further, that unless the named insured requests such coverage in writing, such coverage need not be provided in any renewal policy where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer.
(2) No automobile liability insurance policy or contract shall be issued or delivered after January 1, 1980, unless it contains an endorsement or provisions undertaking to pay the insured all sums which he shall be legally entitled to recover as damages for property damage from the owner or operator of an uninsured motor vehicle, within limits which shall be no less than those set forth in the Mississippi Motor Vehicle Safety Responsibility Law, as amended, under provisions approved by the Commissioner of Insurance; however, at the option of the insured, the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of property damage liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The insurer must provide the insured with written notice, when coverage is obtained and renewed, that the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of bodily injury liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The insurer must have the insured sign and date a copy of the written notice when the coverage is obtained, but not upon renewal, and retain the signed and dated copy along with the insured's application for insurance. The coverage herein required shall not be applicable where any insured named in the policy shall reject the coverage in writing and provided further, that unless the named insured requests such coverage in writing, such coverage need not be provided in any renewal policy where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer.
The property damage provision may provide an exclusion for the first Two Hundred Dollars ($200.00) of such property damage; however, the uninsured motorist provision need not insure any liability for property damage, for which loss the policyholder has been compensated by insurance or otherwise.
(3) The insured may reject the property damage liability insurance coverage required by subsection (2) and retain the bodily injury liability insurance coverage required by subsection (1), but if the insured rejects the bodily injury liability coverage he may not retain the property damage liability coverage. No insured may have property damage liability insurance coverage under this section unless he also has bodily injury liability insurance coverage under this section.
SECTION 5. This act shall take effect and be in force from and after July 1, 2011.
