The bill appropriates a total of $40 million for the Mississippi Insurance Department to pass to the state run windpool
Haley Barbour, Governor of Mississippi, has signed a legislation to restrain insurance costs for coastal property owners – reported Insurance Journal.
The bill appropriates a total of $40 million for the Mississippi Insurance Department to pass to the state run windpool (the Mississippi Wind Underwriting Association). It offers coverage for property owners unable to buy private insurance. This is $20 million more than previously appropriated.
The infusion of funds implies that residential and commercial property owners who have coverage through the windpool, will be protected against rate increases. According to Insurance Commissioner, Mike Chaney, the money is earmarked to purchase reinsurance for the windpool.
As per the legislation, $20 million will come from the MWUA’s Reinsurance Assistance Fund, and the added $20 million will be taken from the state’s Hurricane Disaster Reserve Fund.