Monday, 12 February 2007
Mississippi Bills To Level Off Insurance Rates
The Mississippi House and Senate each passed new legislation to level off insurance rates. They will also attempt to stimulate the redevelopment of the devastated Gulf coast.
The bills would replenish the state’s “wind pool”, which offers coverage in areas where most insurance companies will not write policies.
As part of the new legislation, the wind pool will be funded by a premium increase of around $14 per year for all Mississippi residents. But the increases are expected to have positive long-term effects on insurance rates.
“This bill should level off insurance rates, keep [insurance] companies in Mississippi and make insurance more affordable statewide,” said Senator Dean Kirby.
The two bills from the House and Senate are almost identical — but have one major difference. The Senate version calls for the board overseeing the wind pool to include insurance agents or other insurance industry representatives as members — the House version doesn’t.
The bills will likely go to conference for more debate before the governor reviews them. But Legislators agree that it’s necessary to take action.
“If we didn’t pass some type of legislation, residents would have experienced very high increases in their premiums,” said Senator Merle Flowers. “Hurricane Katrina had a devastating impact on the state of Mississippi regardless of where in the state you’re from. Everything was affected, from insurance to building costs.”
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