Surplus lines insurance; extend repealer on statute prescribing nonadmitted policy fee for.
The bill sets the nonadmitted policy fee at three percent (3%) of the total policy premium, which must be collected from the insured. Importantly, this fee is categorized separately and is therefore not subject to other premium taxes or commissions. By enforcing this statute, the state aims to ensure proper funding flows to the association while maintaining compliance with updated insurance practices. The legislation has a clear date for its enforcement, initiating on July 1, 2022, and seeks to ensure a stable financial foundation for addressing windstorm risks through the association's framework.
House Bill 484 aims to amend Section 83-34-4 of the Mississippi Code of 1972 concerning the requirements placed on agents who place insurance through nonadmitted insurers. Specifically, the bill seeks to extend the duration of a statute that mandates all agents to collect and remit a nonadmitted policy fee to the Mississippi Windstorm Underwriting Association. This extension is intended to continue the operational structure surrounding the handling of nonadmitted policies and their associated fees, which are critical for funding and supporting the association's activities.
A notable point of contention surrounding HB 484 may arise from the implications of its continuation. Stakeholders might debate the financial burden this fee could represent for consumers procuring insurance through nonadmitted insurers. Additionally, there may be discussions on the effectiveness of the fee in providing adequate funding for the Mississippi Windstorm Underwriting Association's goals, especially considering potential shifts in the insurance market and risk assessments following natural disasters. The ongoing debate will likely center on balancing the need for comprehensive coverage and the cost burden faced by insured parties.