Mississippi 2025 Regular Session

Mississippi House Bill HB1169

Introduced

1/20/25

Refer

1/20/25

Failed

2/4/25

Caption

MS Insurance Guaranty Association Law; revise to add cybersecurity insurance to.

Impact

The bill introduces necessary changes to existing statutes, particularly focusing on sections concerning the obligations of the Mississippi Insurance Guaranty Association regarding covered claims. Specifically, it stipulates the obligations for property damage claims and both first and third-party claims under cybersecurity insurance policies. This move aims to ensure that claimants can seek compensation even when insurers face insolvency, thereby enhancing consumer protection in today's digital economy.

Summary

House Bill 1169 is a legislative proposal aimed at amending the Mississippi Insurance Guaranty Association Law. The bill seeks to redefine 'covered claim' to explicitly include cybersecurity insurance, which reflects the growing concerns and needs related to cyber threats and data breaches. This addition is critical as cybersecurity incidents become increasingly prevalent in the insurance landscape, necessitating that such claims be covered under the existing guarantee association framework designed to protect policyholders from the loss of coverage due to the insolvency of their insurers.

Contention

While the bill does not appear to have any major points of contention based on the available discussions, it reflects a broader trend of addressing emerging risks in the insurance market. Some concerns may arise regarding the financial implications for insurance providers in terms of potential increased liabilities related to cybersecurity coverage. Additionally, the bill’s provisions regarding assessments on member insurers are framed within a capped structure to limit financial strain on these companies, which might provoke discussions among stakeholders about the feasibility and impacts of such regulations.