Mississippi 2023 Regular Session

Mississippi Senate Bill SB2378

Introduced
1/16/23  
Refer
1/16/23  

Caption

Reciprocal Insurance; revise provisions relating to sworn declarations and memberships of boards of directors.

Impact

In addition to the provisions regarding sworn declarations, SB2378 modifies the membership requirements for the board of directors overseeing these reciprocal entities. The new requirements dictate that at least two-thirds of the board must consist of subscribers or their representatives, rather than individuals with financial interests in the managing attorney. This change is aimed at ensuring that the governance of reciprocal insurance organizations is more accountable to the subscribers themselves, potentially improving trust and efficiency within these entities as they manage their affairs.

Summary

Senate Bill 2378 seeks to amend specific sections of the Mississippi Code of 1972 relating to reciprocal insurance subscribers. The bill primarily targets the regulations surrounding sworn declarations that must be filed with the Commissioner of Insurance. It stipulates that subscribers must submit detailed declarations verified by their attorney, providing important information such as the name and address of the reciprocal, types of insurance being exchanged, and proofs of financial capability to cover risks. This measure is intended to enhance transparency and regulatory oversight in the field of reciprocal insurance.

Contention

There are potential points of contention surrounding SB2378, particularly regarding the balance of power between subscribers and the attorneys who administer these reciprocal insurance companies. Opponents might argue that while enhancing subscriber representation in board governance strengthens accountability, it could also discourage experienced professionals from serving in administrative roles if they feel their influence is curtailed. Additionally, concerns may be raised about how these changes interact with existing statutes governing insurance practices in Mississippi, as well as the financial implications for reciprocal organizations adapting to these new regulations.

Companion Bills

No companion bills found.

Previously Filed As

MS HB1162

Reciprocal insurance; revise sworn declaration requirements of and board of directors for.

MS AB376

Revises provisions relating to insurance. (BDR 57-1009)

MS SB57

Revises provisions relating to insurance. (BDR 57-272)

MS H5548

Makes numerous technical corrections related to insurance, provides a definition for "cybersecurity insurance", and would repeal the chapter relating to reciprocal exchanges and interinsurers.

MS S0600

Makes numerous technical corrections related to insurance, provides a definition for "cybersecurity insurance", and would repeal the chapter relating to reciprocal exchanges and interinsurers.

MS HB1347

Insurance; revise various provisions regarding.

MS AB74

Revises provisions relating to insurance. (BDR 57-256)

MS HB888

Insurance mitigation; revise various provisions related to.

MS HB1174

Public adjusters licensure; revise provisions related to.

MS HB362

Fresh Start Act; revise certain provisions of.

Similar Bills

MS HB1162

Reciprocal insurance; revise sworn declaration requirements of and board of directors for.

FL H1611

Insurance

FL H0881

Insurance

FL H1015

Insurance

TX HB1944

Relating to captive insurance companies.

NJ A4536

Provides that contracts between subscribers and attorney in fact are not a related party transaction.

NJ S3636

Provides that contracts between subscribers and attorney in fact are not a related party transaction.

NJ S1477

Provides that contracts between subscribers and attorney in fact are not a related party transaction.