Post-Katrina, consumers’ bill of rights proposed in Mississippi

Insurance companies in Mississippi might in the future be required to provide an outline of coverage that will help policyholders better understand the principal benefits and coverage provided in their policy.The possibility is contained in a new proposed regulation by the Secretary of States’ Office and the Mississippi InsuranceDepartment (MID).Two major components of the proposed new regulation are:- a consumers’ bill of rights- a requirement that all property and casualty insurers writing homeowners, personal lines and residential insurance property coverage provide an outline of coverage for homeowners insurance policies — including renters and tenants insurance, and mobile home housing property insurance.After Hurricane Katrina caused massive destruction within Mississippi, the MID found that many policyholders who filed property loss claims were inadequately insured or did not fully understand the insurance they had purchased. The proposed regulation is supposed to prevent this from happening again in the future.”This important new regulation will give the MID a powerful new tool in assisting consumers in this state,” said MID commissioner George Dale. “With it, we can help resolve many of the problems brought to light by the sheer scope and enormity of Hurricane Katrina in regard to citizens understanding their homeowner’s insurance policy.”I am confident this proposed regulation will prove beneficial to Mississippi policyholders.”The regulation will apply to all insurance companies in Mississippi. A public hearing on the proposed regulation is scheduled for Jan. 26, 2007.