Mississippi Senate Bill SB2226

Mississippi 2023 Regular Session

• Introduced: 1/13/23
• Refer: 1/13/23
• Failed: 1/31/23

Caption

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

Impact

If passed, SB2226 will modify existing laws related to insurance coverage, particularly concerning how deductibles are applied for claims arising from wind damage. The bill could lead to broader implications for insurance practices in Mississippi, specifically by providing more favorable terms for insured parties who incur multiple claims. This will likely encourage residents, especially in vulnerable coastal regions, to maintain necessary property insurance without the fear of facing prohibitive deductibles that could discourage timely claims. As a result, it could lead to increased financial security for homeowners facing the risk of severe weather.

Summary

Senate Bill 2226 aims to amend the Mississippi Code by introducing provisions that limit the financial liability of wind pool insured individuals to a maximum of one deductible per calendar year for losses resulting from multiple named storms. This amendment presents a significant shift in how insurance claims related to wind damage from storms are processed, potentially easing the financial burden on policyholders who experience losses from multiple incidents in a single year. The bill is particularly relevant in the context of coastal areas where the frequency of storms is higher, impacting homeowners and insurers alike.

Contention

Discussions surrounding SB2226 may encounter contention regarding the balance of risk between insurers and policyholders. Supporters of the bill argue that limiting the deductibles is vital to protect homeowners from disaster-related financial strain. Conversely, insurance companies might express concerns about the potential for increased claims which could affect their profitability and lead to higher premiums for all insured individuals. Furthermore, lawmakers may debate the appropriate mechanism for implementing the amendments in a way that ensures sustainability for both the insurance market and the consumers it serves.