Bill Text: MS SB2582 | 2012 | Regular Session | Introduced
Bill Title: Homeowners insurance; require premium discount for property built or retrofitted to resist hurricanes.
Sponsorship: Moderate Partisan Bill (Republican 5-1)
Status: (Failed) 2012-03-06 - Died In Committee [SB2582 Detail]
Download: Mississippi-2012-SB2582-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Insurance; Finance
By: Senator(s) Watson, Carmichael, Kirby, Clarke, Jones, Wiggins
Senate Bill 2582
AN ACT TO REQUIRE INSURANCE COMPANIES TO PROVIDE A PREMIUM DISCOUNT OR RATE REDUCTION TO ANY OWNER WHO BUILDS, REBUILDS, OR RETROFITS AN INSURABLE PROPERTY, LOCATED IN CERTAIN COUNTIES, TO RESIST LOSS DUE TO HURRICANE OR OTHER CATASTROPHIC WINDSTORM EVENTS; TO DEFINE "INSURABLE PROPERTY"; TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Premium discount or insurance rate reduction �construction and certification. (1) Commencing on the effective date of this act, insurance companies shall provide a premium discount or insurance rate reduction in an amount and manner as established in subsection (4) of this section and pursuant to Section 3 of this act. 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, George, Stone and Pearl River Counties, to resist loss due to hurricane or other catastrophic windstorm events.
(2) To obtain the adjustment provided in this section, an insurable property located in this state shall be certified as constructed in accordance with the 2006 International Residential Code, as amended, including all hurricane mitigation construction requirements, or the Fortified For Safe Living Standards (FFSLS), as may from time to time be adopted by the Institute for Business and Home Safety, or other mitigation program, or other construction technique, or other standardized code which may approved by the commissioner. An insurable property shall be certified as conforming to the applicable building code only after an inspection of the insurable property has been satisfactorily completed by a certified or licensed building inspector and certified to be conforming to the applicable building code including all hurricane mitigation construction requirements. An insurable property shall be certified as conforming to FFSLS criteria only after inspection and certification by an FFSLS certified inspector.
(3) An owner of insurable property claiming an adjustment pursuant to this section shall maintain sufficient certification records and construction records including, but not limited to, a certification of compliance with the applicable building code or FFSLS criteria provided in subsection (2) of this section, receipts from contractors, receipts for materials, and records from local building officials.
(4) 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 (2) 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 an FFSLS insurable 33 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. Premium discount or insurance rate reduction - fortified existing homes. (1) Commencing on the effective date of this act, insurance companies shall provide a premium discount or insurance rate reduction in an amount and manner as established in subsection (4) of this section and pursuant to Section 3 of this act. 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 retrofits his or her insurable property in Harrison, Hancock, Jackson, George, Stone and Pearl River Counties, to resist loss due to hurricane or other catastrophic windstorm events.
(2) To obtain the adjustment provided in this section, an insurable property shall be retrofitted to Level One, Level Two or Level Three, all as defined in the Fortified Existing Homes requirements as may from time to time be adopted by the Institute for Business and Home Safety, or other mitigation program, or other construction technique, or other standardized code which may be submitted by each insurer and approved by the commissioner. Zone three HUD code manufactured homes shall also be retrofitted as defined in the Fortified Existing Home requirements as may from time to time be adopted by the Institute for Business and Home Safety. An insurable property shall be certified as conforming to Fortified Existing Home requirements only after inspection and certification by an FFSLS certified inspector. Certification of conformity of an insurable property with the other mitigation program, other construction technique, or other standardized code shall be made only by a certified or licensed building inspector. (3) An owner of insurable property claiming an adjustment pursuant to this section shall maintain sufficient certification records and construction records including, but not limited to, a certification of compliance with the mitigation program, construction technique, or standardized building code, as applicable, or FFSLS as provided in subsection (2) of this section, receipts from contractors, receipts for materials, and records from local building officials.
(4) Insurers required to submit rates and rating plans to the commissioner shall submit actuarially justified rating plans for any person who retrofits an insurable property to comply with the sets of alternatives provided in subsection (2) of this section. The 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 3. Insurable property. For the purposes of this chapter, the term insurable property includes single family residential property. Insurable property also includes modular homes satisfying the codes, standards, or techniques as provided in Section 1 or Section 2 of this act. Manufactured homes or mobile homes are excluded, except as expressly provided in Section 2(2) of this act.
SECTION 4. Applicability. This chapter shall only apply to new insurance policies written or existing policies renewed on or after the first day of the twelfth month following the effective date of this act.
SECTION 5. Rules and regulations. The Commissioner of Insurance may promulgate such rules as are necessary to implement and administer this act.
SECTION 6. This act shall take effect and be in force from and after July 1, 2012.
