83-34-9 - Participation by assessable insurers in regular assessments levied by association; financial incentives and/or penalties to ensure assessable insurers write insurance in the coast area. - Mississippi Statutes

§ 83-34-9. Participation by assessable insurers in regular assessments levied by association; financial incentives and/or penalties to ensure assessable insurers write insurance in the coast area.
 

(1)  All assessable insurers of the association shall participate in regular assessments levied by the association based upon their percentage of participation. The association may allow affiliated insurers to combine their annual net direct premiums and other data, including data that supports any incentives that may be allowed by the association, to the extent that such grouping promotes the voluntary writing of essential property insurance in the coast area. Any provisions for credits and grouping of data shall be prescribed in the plan of operation. 

(2)  All profits of the association shall remain as assets of the association. 

(3)  The plan of operation shall provide financial incentives or financial penalties, or both, to ensure that assessable insurers write essential property insurance in the coast area. The incentives and penalties may include, but are not limited to, a reduction in recovery of regular assessments, a nonrecoverable participation in losses incurred by the association above the amounts covered by the regular assessments, adjustments in the percentage of participation, and other incentives and penalties as provided in the plan of operation. The commissioner shall approve the plan of operation as provided in Section 83-34-13. 
 

Sources: Laws,  1987, ch. 459, § 6; Laws, 2007, ch. 425, § 10, eff from and after passage (approved Mar. 22, 2007.)