Mississippi legislation aims to bring more clarity to the property insurance sector
Mississippi lawmakers are attempting to bring more clarity to the property insurance space. A new legislation, which has won support from the House of Representatives, is set to appear before the state’s Senate. The legislation is designed to bring more transparency to homeowners insurance and provide clarity on the premiums that insurance companies collect. Called the Property Insurance Clarity Act, the legislation is gaining strong support. Last year, a previous version of the legislation was struck down by lawmakers.
Property Insurance Clarity Act will require insurers to provide more information to state agencies
The Property Insurance Clarity Act would require insurers to report the amount of premiums they collect and the amount of claims that have been paid. This information will be categorized based on the state’s ZIP codes. If the legislation is approved, homeowners insurance providers will have until October 1 of this year to provide reports concerning various aspects of the policies they offer. Along with the financial information included in these reports, insurers will also note changes to policy limitations, reinsurance expenditures, and losses that the insurer had experienced in the previous year.
The legislation may shed some light on the high cost of wind insurance
Lawmakers believe that the legislation will have some impact on wind insurance. This type of insurance coverage is supplemental and is meant to offer protection to properties that may be damaged by strong winds caused by powerful storms. Wind coverage is currently quite expensive in Mississippi. The new legislation could shed some light on why this is the case by requiring insurance companies to provide more information concerning the properties that they provide coverage for.
Legislation receives unanimous support from the House
The Property Insurance Clarity Act passed the House of Representatives with unanimous approval, receiving no dissenting votes against it. Lawmakers supporting the legislation hope that this will provide it with strong momentum as it moves on to the Senate. Unanimous votes are somewhat uncommon due to the nature of politics, but insurance issues appear to be a unifying factor for the state.