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MISSISSIPPI DEPARTMENT OF INSURANCE
REGULATION 2007-1, as amended.
MISSISSIPPI HOMEOWNER INSURANCE
POLICYHOLDER BILL OF RIGHTS
TABLE OF CONTENTS:
Section 1. Purpose
Section 2. Authority
Section 3. Scope
Section 4. Policyholder Bill of Rights
Section 5. Outline of Coverage and Comprehensive Policy Checklist
Section 6. Burden of Proof
Section 7. Cause of Action
Section 8. Violations and Penalties
Section 9. Severability
Section 10. Effective Date
Section 1. Purpose
After Hurricane Katrina hit the Mississippi Gulf Coast on August 29, 2005, and caused
massive destruction within the State, the Department found that many homeowner insurance
policyholders who filed property loss claims were inadequately insured or did not fully
understand the insurance they had purchased.
The purpose and intent of this Regulation is to address these issues by setting forth
procedures and requirements that ensure policyholders understand their rights as policyholders in
the State of Mississippi, and by enacting a requirement that property and casualty insurance
companies writing homeowners personal lines residential insurance property coverage establish
standard checklists of policy contents.
To accomplish these goals, this Regulation sets forth the rights Mississippi policyholders
have with respect to their insurance policies and insurance companies. This Regulation also
requires that property and casualty insurers provide an outline of coverage and a standard
checklist of policy contents to policyholders.
Policyholders should be aware that Mississippi law provides that insureds have an
affirmative duty to read a contract of insurance and are bound by the contents thereof. Any
outline of coverage and comprehensive policy checklist is for informational purposes only, and
does not change the coverage selected and paid for by the policyholder. This Regulation is being
promulgated by the Commissioner of Insurance in order to facilitate the public's understanding
of homeowners policies.
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Section 2. Authority
This Regulation is promulgated by the Commissioner of Insurance pursuant to the
authority granted to him by Miss. Code Ann. §§ 83-5-1, and 83-5-29 through 83-5-51(Rev.
1999), as well as the provisions of Mississippi Department of Insurance Regulation No. 88-101,
said Regulation being the Rules of Practice and Procedure before the Mississippi Insurance
Department.
Section 3. Scope
This Regulation shall apply to all insurance companies (including surplus lines
companies, the Mississippi Windstorm Underwriting Association, and the Mississippi
Residential Property Insurance Underwriting Association) writing homeowners personal lines
residential property coverage insurance policies in the State of Mississippi. For the purposes of
this Regulation, personal lines residential property coverage shall include condominium
insurance, dwelling fire policies, renters/tenants insurance and mobile home/manufactured
housing property coverage, even if said coverage is classified as an automobile property policy.
Creditor-placed property coverage and condominium association or homeowner association
property coverage is excluded from the provisions of this Regulation.
Section 4. Policyholder Bill of Rights
The rights set forth below shall serve as standards to be followed by the Mississippi
Department of Insurance in exercising the Department's powers and duties, in exercising
administrative discretion, in dispensing administrative interpretations of the law, and in
regulating insurance companies pursuant to the Unfair and Deceptive Trade Practices Act, Miss.
Code Ann. §§83-5-29 through 83-5-51. These rights include, but are not limited to, the
following:
1. Policyholders shall have the right to competitive pricing practices and
marketing methods that enable them to determine the best value among
comparable coverage.
2. Policyholders shall have the right to insurance advertising and other
selling approaches that provide accurate and balanced information on the benefits
and limitations of a policy.
3. Policyholders shall have the right to assurance that the insurance market in
general and their insurance company in particular is financially stable.
4. Policyholders shall have the right to receive good service from competent,
honest individuals and producers, and to have their questions addressed promptly.
5. Policyholders shall have the right to a policy in an easily readable format,
to receive a complete policy, and to request a duplicate or replacement policy as
needed.
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6. Policyholders shall have the right to assurance that their insurance
company is regulated to comply with Mississippi laws requiring economic
delivery of coverage and loss prevention measures.
7. Policyholders shall have the right to balanced and positive regulation by
the Mississippi Department of Insurance.
8. Policyholders shall have the right to request the license status of an
insurance company or producer.
9. Policyholders shall have the right to receive in writing from their
insurance company the reason for any cancellation or nonrenewal of coverage.
The written statement from the insurance company must provide an adequate
explanation for the cancellation or nonrenewal of coverage.
10. Policyholders shall have the right to cancel their policy and receive a
refund of any unearned premium. If a policy was funded by a premium finance
company, the unearned premium will be returned to the premium finance
company to pay toward the policyholder's financing loan.
11. Policyholders shall have the right to a written notification detailing any
change in policy provisions relating to their coverage at renewal.
12. Policyholders shall have the right to receive a written explanation of why a
claim is denied, in whole or in part.
13. Policyholders shall have the right to request and receive from the
insurance company any adjuster reports, engineer reports, contractor reports,
statements or documents which are not legally privileged documents that the
insurance company prepared, had prepared, or used during its adjustment of the
policyholder's claim. A company may keep confidential any documents they
prepare in conjunction with a fraud investigation.
14. Policyholders shall have the right to have any decision regarding the
denial or nonrenewal of their policy, or the adjustment of their rates not be based
solely on the basis of their credit information. If an insurance company uses credit
information, it must comply with the provisions set forth in Mississippi
Department of Insurance Regulation 2003-1, "Use of Credit History and
Insurance Scores for Determining Rates and Eligibility for Personal Insurance",
and the Federal Fair Credit Reporting Act.
15. Policyholders shall have the right to prevent an insurance company, agent,
adjuster or financial institution from disclosing their personal financial
information to companies or entities that are not affiliated with the insurance
company or financial institution. Insurance companies must comply with the
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provisions set out in Mississippi Department of Insurance Regulation 2001-1,
"Privacy of Consumer Financial and Health Information Regulation".
16. Policyholders shall have the right to receive at least thirty (30) days notice
of the nonrenewal of their policy pursuant to the provisions of Miss. Code Ann. §
83-5-28.
17. Policyholders shall have the right to be treated fairly and honestly when
making a claim.
18. Policyholders shall have the right to reject any settlement amount offered
by the insurance company.
19. Policyholders shall have the right to file a written complaint against any
insurance company or insurance producer with the Mississippi Department of
Insurance, and to have that complaint investigated by the Mississippi Department
of Insurance.
No homeowners personal lines residential property coverage insurance policy shall be delivered
or issued for delivery in this state, or at renewal, unless a copy of the Policyholder Bill of Rights
is included with the policy.
Section 5. Outline of Coverage and Comprehensive Policy Checklist
No homeowners personal lines residential property coverage insurance policy shall be
delivered or issued for delivery in this state unless an appropriate outline of coverage and
comprehensive policy checklist have been delivered to the policyholder prior to or shortly
thereafter issuance of the policy under separate cover, or accompany the policy when issued. The
comprehensive policy checklist shall contain a list of provisions and elements, as required by
this Regulation, whether or not they are included in the particular policy being issued, in a
format that allows the insurer to indicate whether the provision is included so that the
policyholder can see both what is included and what is not included in the policy. The outline of
coverage and comprehensive policy checklist shall also be furnished at each renewal of the
policy. The outline of coverage and comprehensive policy checklist shall provide information on
the policy and may, but is not required, to include coverage by endorsement.
To be in compliance with this section, an insurer may use the Outline of Coverage and
Comprehensive Policy Checklist prepared by the Department and attached hereto as Exhibit
"A", or the insurer may create its own Outline of Coverage and Comprehensive Policy Checklist,
provided the following information is included.
A. The Outline of Coverage shall provide information on the policy and may,
but is not required, to include coverage by endorsement, and shall contain, at a
minimum, the information set forth below.
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1. A brief description of the type of coverage provided in the
policy, amount of coverage, and whether the coverage is replacement cost
or actual cash value ("ACV").
2. A summary statement of the principal exclusions and
limitations or reductions contained in the policy, and any other limitations
or reductions.
3. A summary of any additional coverage provided through
any rider or endorsement that accompanies the policy, amount of that
coverage, and whether the coverage is replacement cost or ACV.
Any insurer electing not to use Exhibit "A", or deviating from Exhibit
"A" , shall file its Outline of Coverage and Comprehensive Policy Checklist with
the Department for approval prior to use.
B. An insurer must insert the following language on the outline of coverage:
"The following is an outline of coverage and comprehensive policy
checklist of your insurance policy and is for informational purposes only.
Mississippi law prohibits this checklist from changing any of the
provisions of the insurance contract which is the subject of this checklist.
Any endorsement regarding changes in types of coverage, exclusions,
limitations, reductions, deductibles, coinsurance, renewal provisions,
cancellation provisions, surcharges, or credits is not included in this
checklist, unless otherwise indicated. This checklist does not operate to
expand coverage beyond the coverage provided in the policy. If there is a
contradiction between this checklist and the policy, the terms of the policy
govern.
Policyholders should read their policy thoroughly. Policyholders should
review their insurance policy annually with their insurance producer to
ensure they are adequately covered."
C. Comprehensive Policy Checklist:
As part of the Outline of Coverage for homeowners personal lines residential
property coverage insurance policies, an insurance company shall prepare a
Comprehensive Policy Checklist. This comprehensive checklist shall contain a list
of provisions and elements as required by this Regulation, whether or not they are
included in the particular policy being issued, in a format that allows the insurer
to indicate whether the provision is included so that the policyholder can see both
what is included and what is not included in the policy. The comprehensive Policy
checklist shall address, at a minimum, the following:
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1. Property coverage for the principal premises shown in the
declarations;
2. Property coverage for other structures on the residence
premises;
3. Whether the principal premises and other structures are insured
against the following perils:
a. Fire
b. Lightening
c. Explosion
d. Wind and Hail
e. Flood
f. Earthquake
g. Collapse
h. Mold
i. Theft;
4. Personal property/contents coverage and amounts or
percentage of coverage;
5. Whether personal property/contents are insured against the
following perils:
a. Fire
b. Lightening
c. Explosion
d. Wind and Hail
e. Flood
f. Earthquake
g. Collapse
h. Mold
i. Theft; and,
6. Whether the policy provides the following additional
coverage;
a. Debris Removal
b. Loss assessment
c. Additional living expenses
d. Personal Liability coverage
e. Medical payments coverage
f. Named Windstorm Deductible
h. Building ordinance or law coverage
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EXHIBIT "A"
OUTLINE OF COVERAGE AND
COMPREHENSIVE POLICY CHECKLIST
The following is an outline of coverage and comprehensive policy checklist (hereinafter
"checklist") of your insurance policy and is for informational purposes only. Mississippi law
prohibits this checklist from changing any of the provisions of the insurance contract which is
the subject of this checklist. Any endorsement regarding changes in types of coverage,
exclusions, limitations, reductions, deductibles, coinsurance, renewal provisions, cancellation
provisions, surcharges, or credits is not included in this checklist, unless otherwise indicated.
This checklist does not operate to expand coverage beyond the coverage provided in the policy.
If there is a contradiction between this checklist and the policy, the terms of the policy govern.
You should read your policy thoroughly. You should review your insurance policy annually with
your insurance producer to ensure you are adequately covered.
Reviewing this checklist together with your policy can help you gain a better understanding of
your policy's actual coverages and limitations, and may even answer general questions. By
addressing any questions now, you will be more prepared later in the event of a claim. A clear
understanding of your policy's coverages and limitations will reduce confusion that may arise
during claims settlement.
To fully understand your insurance policy, you should read all provisions contained therein. If
you have questions regarding your policy, please contact your agent. Consumer assistance is
available from the Department of Insurance, Division of Consumer Services, 1-800-562-2957 or
www.doi.state.ms.us.
Policy Type: (Homeowners, mobile/manufactured housing, renters/tenant)
Provide general description:
Example: Policy Type: Homeowners
Your homeowners insurance policy is a package policy that combines
coverage for your property that is destroyed or damaged by various perils, and
provides you certain coverage for liability exposure.
Dwelling Structure Coverage
Limit of Insurance: (Policy Limits) Loss Settlement Basis: (ACV or
Replacement)
Other Structure Coverage (Detached from Dwelling)
Limit of Insurance:______________
Loss Settlement
Basis:__________________
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Policy Checklist of Coverage (continued)
Personal Property Coverage
Limit of Insurance:________________
Loss Settlement
Basis:__________________
Deductibles
Deductible: (Amount)
Hurricane/Named Windstorm Deductible:(Amount; if applicable)
Residence and Other Structure Coverage
Items marked with a Y(Yes) indicate coverage IS included; those marked with a N(No) indicate
coverage is NOT included. Special limits and loss settlements exceptions may apply to
certain limits. Refer to your policy for details. If there is a contradiction between this
checklist and your policy, the terms of the policy govern.
Coverage
Peril
Y
Fire
Lightening
Explosion
Wind and Hail
N
Flood
Earthquake
Collapse
Mold
Theft
Personal Property/Contents Coverage
The Limit of Insurance, Deductibles, and Loss Settlement Basis apply to the following perils
insured against. Items marked with a Y(Yes) indicate coverage IS included; those marked with a
N(No) indicate coverage is NOT included. Special limits and loss settlements exceptions may
apply to certain limits. Refer to your policy for details. If there is a contradiction between
this checklist and your policy, the terms of the policy govern.
Coverage
Peril
Y
Fire
Lightening
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Explosion
Wind and Hail
N
Flood
Earthquake
Collapse
Mold
Theft
Additional Coverage
Items below marked Y (Yes) indicate coverage IS include; those marked N (No) indicate
coverage is NOT included. Special limits and loss settlements exceptions may apply to
certain limits. Refer to your policy for details. If there is a contradiction between this
checklist and your policy, the terms of the policy govern.
Coverage
Peril
Time Limit
Y
Debris
Removal
n/a
Loss
Assessment
Y
Additional
Living
Expenses
24 months
Personal
Liability
Coverage
Medical
payments
coverage
Building,
Ordinance or
Law coverage
Named
Windstorm
Deductible
Deductible
n/a