Mississippi Senate Bill SB2466

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

Wind pool; no more than one deductible per year from named storms.

Impact

The reform introduced by SB2466 is expected to have a significant impact on policyholders in coastal regions who depend on wind pool insurance. In essence, it simplifies the claims process during multiple storm events by limiting out-of-pocket expenses for insured parties. The change is particularly pertinent as it addresses the repetitive deductibles that homeowners often encounter with successive storms, thereby facilitating quicker and more manageable recovery processes for affected individuals.

Summary

Senate Bill 2466 seeks to amend Section 83-34-13 of the Mississippi Code of 1972 by stipulating that a wind pool insured will only be liable for one deductible per calendar year in the event of losses incurred from multiple named storms. The aim behind this provision is to alleviate the financial burden on insured individuals who might otherwise face multiple deductibles in a single storm season. This approach is designed to provide a more equitable insurance framework for coastal property owners, thus encouraging stability in the insurance market for properties exposed to such risks.

Conclusion

Overall, SB2466 has the potential to reshape the landscape of wind pool insurance in Mississippi by introducing changes that could ease the burden on coastal residents. It remains crucial for stakeholders, including regulatory bodies and insurance companies, to collaborate on this matter to ensure sustainable and fair outcomes for all involved.

Contention

However, discussions surrounding the bill may reveal points of contention, particularly among insurance providers. Insurers often argue that imposing a single deductible for multiple named storms could lead to increased risks and higher premiums. There is also concern regarding the financial implications for insurance companies managing wind pool operations since the cost burden could potentially shift to them without the ability to recuperate through multiple deductibles from policyholders. These contrasting views reflect broader discussions about balancing consumer protection with the operational realities of insurance companies.