The Mississippi Casualty Rating Law follows substantially the
Commissioners' prior-approval-type bill and applies to all casualty lines
including all forms of motor vehicle insurance except: "Re-insurance; title
insurance, credit insurance; accident and health insurance; or insurance
against risks or liability (other than workman's compensation and employers'
liability) arising out of the ownership, maintenance, or use of
aircraft."
A. Individual risk rating
plans must comply with the following requirements:
1. Each such plan must be filed with the
commission for approval and must specify the kind of insurance or subdivision
or combination thereof, to which the plan applies.
2. Each such plan must establish standards
which bear a relationship to the variation in hazard and/or expense to be
measured.
3. Any such plan must be
applied to all eligible risks, and must be applied by company representatives
responsible for underwriting the risk(s) involved.
4. Each company utilizing such plans must
obtain all information necessary to determine the proper application of such
plans to any particular risk. Such supporting information shall be retained by
the company and made available to the commission upon request.
B. Risks Declined in Normal
Market.
When companies issuing casualty insurance in this state write
a policy, the premium which results from the fact that the risk cannot contain
such coverage in the normal market, the company should submit in duplicate a
letter to the Mississippi Insurance Commission requesting approval and attach a
signed statement from the insured using the following or wording of similar
import:
1. I am unable to obtain
(state kind) insurance at normal rates and hereby request the issuance of this
policy at rates in excess of normal rates.
2. I have been unable to procure similar
insurance at normal rates although my risk has been submitted to at least three
(3) other insurance companies authorized to transact such business in
Mississippi.
3. (In case of
automobile liability insurance) I understand that liability limits sufficient
to meet the financial responsibility requirements of the state may be available
through the Mississippi Automobile Insurance Plan. (The foregoing statement is
not applicable when the policy is issued through the Mississippi Automobile
Insurance Plan.)
4. (In the case of
workmen's compensation and employers' liability insurance) I understand that I
may obtain normal limits of liability insurance through a workmen's
compensation and employers' liability assigned risk plan. (The foregoing
statement is not applicable when the policy is issued through a Workmen's
Compensation and Employer's Liability Assigned Risk Plan.)
5. Each submission should contain limits
desired for each coverage together with premium applicable to each.
6. A copy of the daily report should
accompany the request.
C.
Uninsured
Motorist.
The General Acts of the Regular Legislative Session 1966
contain house Bill No. 121 which we call to your attention.
