Bill Text: MS SB2854 | 2011 | Regular Session | Introduced
Bill Title: Insurance company catastrophe models; require Attorney General to study accuracy and reliability of.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2011-02-01 - Died In Committee [SB2854 Detail]
Download: Mississippi-2011-SB2854-Introduced.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Insurance
By: Senator(s) Dawkins
Senate Bill 2854
AN ACT TO REQUIRE THE ATTORNEY GENERAL TO STUDY THE ACCURACY AND RELIABILITY OF CATASTROPHE MODELS USED BY INSURANCE COMPANIES WRITING PROPERTY INSURANCE IN THE STATE OF MISSISSIPPI; TO REQUIRE THE ATTORNEY GENERAL TO REPORT ITS FINDINGS TO THE LEGISLATURE AND COMMISSIONER OF INSURANCE; TO REQUIRE ANY INSURANCE COMPANY WRITING PROPERTY INSURANCE IN THE STATE OF MISSISSIPPI TO GRANT THE ATTORNEY GENERAL ACCESS TO THE MODELS' UNDERLYING DATA, FORMULAS AND CALCULATIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The Legislature finds that industry-wide reliance on catastrophe models in establishing premium rates has been identified as a factor driving the increase in property insurance premiums. Higher predicted loss estimates produced by these models have been commonly cited by companies as justification for increasing premiums. Therefore, the Legislature declares that such catastrophe models should be independently evaluated and subjected to scrutiny.
SECTION 2. Any insurance company writing property insurance in the State of Mississippi shall grant the Attorney General access to catastrophe models used to justify rates, including the models' underlying data, formulas and calculations. The Attorney General shall keep the underlying data, formulas and calculations of models confidential and shall not disclose such to the public. The Attorney General shall study the accuracy and reliability of the catastrophe models and report its findings to the Legislature and Commissioner of Insurance on or before July 1, 2011. The Attorney General shall utilize any experts needed to study the models and may obtain assistance from any state agency, including, but not limited to, the Mississippi Emergency Management Agency and the meteorology departments of any state university.
SECTION 3. This act shall take effect and be in force from and after July 1, 2011.
