Lindaloo wrote:
PLEASE provide proof that all residents in MS are paying the price because of us here on the Gulf Coast.
You talk as if tornadoes and such do not occurr? The price of insurance is going up because of the anti trust BS that they have hidden behind for years. Those days are over. They should be held accountable for their rise in premiums.
Every company that writes property insurance in Mississippi is required to be a member of the Mississippi Windstorm Underwriting Association and they must contribute money to the “wind pool” so that policies can be issued in the high risk areas. The extra expense of the “wind pool” money paid by each insurance company is passed along to other consumers throughout Mississippi via higher premiums.
Many other states do this as well. Florida, Maryland and Georgia are just a few of the states that have similar laws. The idea is that the coastal areas provide a lot of tourist dollars and other economic benefits for the rest of the state, therefore, lawmakers think that other residents should help pay for the insurance expenses of the coastal folks.
In addition, Katrina related claims wiped out the “wind pool” funds (over $545 million) and insurance companies (by law) have to pay the remaining claims. These expenses will also be passed along to other Mississippi consumers to wit:
Posted on Fri, Feb. 23, 2007
EXTRA
Wind-pool bill now in committee
Hood's proposal not added on
By GEOFF PENDER
SUN HERALD
JACKSON - The House on Thursday unanimously voted to strip a Senate insurance "wind pool" bill and insert language the House passed recently.
The move sends the legislation to a conference committee, meaning House and Senate negotiators can now begin work on a compromise.
"This continues to be a work in progress," said House Insurance Chairman Mark Formby.
The House version includes up to $18 million a year "diversion" to the wind pool of the sales-tax increase on the Coast from Katrina rebuilding.
The Senate and Gov. Haley Barbour oppose this, but agree with the House's plan to use an insurance premium tax paid on every policy in the state for the wind pool.
Some had expected Democratic House leaders Thursday to attempt to amend the bill to include a proposal by Democratic Attorney General Jim Hood to try to force insurance companies to continue writing new home and business policies in Mississippi. Hood last week called for this to be added to the wind-pool legislation - because the deadline for a new stand-alone bill had passed - after State Farm announced it would stop writing new home and business policies in Mississippi. Hood also called on Gov. Haley Barbour and the state insurance commissioner to force companies to continue writing policies until the Legislature can act.
Republican Gov. Haley Barbour refused this request, saying he didn't have that authority. Senate and House GOP leaders say they oppose Hood's proposal, and that it would drive many more companies - including auto insurers - out of the state.
Rep. Bobby Moak, D-Bogue Chitto, did ask Formby before Thursday's vote whether the Hood proposal could be considered during negotiations.
"We are keeping the road wide open," Formby said. "We will not slam the door on any ideas."
The bills are SB 3050 and HB 1500.