Insurers writing residential property insurance in Mississippi have until Oct. 1, 2015 to report direct earned premium, incurred losses, policy limits, reinsurance, allocated loss adjustment expenses, and the number of policies in force under affected lines for calendar years 2005 through 2014.
Under the state's new "Property Insurance Clarity Act," the data is to be reported for three categories of policies:
- Those that include windstorm coverage along with other covered perils;
- Those that exclude coverage for windstorm losses; and
- Those that cover windstorm losses only.
The same data is to be reported once every three years thereafter, until the law sunsets in 2022.
The requirement extends to homeowners, dwelling fire, tenants/unit-owners, and mobile/manufactured home policies, but not to creditor-placed insurance, condominium association insurance, and commercial insurance.
The law states that the data will be aggregated by ZIP Code and used for "the purposes of determining the accuracy and adequacy of catastrophic models and determine the adequacy of rates by data calls . . ." Aggregated data may be posted on the insurance department's website along with a general description of the ratemaking methodology the department allows insurers to use in establishing homeowners rates.
The law authorizes the insurance department to waive the reporting requirements for certain insurers upon good cause. It also authorizes the department to fine insurers $2,500 per month for failing to comply with the reporting requirements within 90 days of notice of failure.
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