Mississippi Insurance Department (MID)

The Mississippi Insurance Department (MID) is the state agency responsible for regulating the Property & Casualty insurance industry in Mississippi. The Department operates as an independent state agency to protect consumers and ensure a stable insurance marketplace.

The Commissioner of Insurance

The Mississippi Commissioner of Insurance is:

• Elected by Mississippi voters for a four-year term
• Responsible for enforcing Mississippi Code Title 83 (Insurance Law)
• Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
• Accountable directly to Mississippi citizens through the electoral process

Key Difference: Unlike many states where the Insurance Commissioner is appointed by the Governor, Mississippi's Commissioner is elected, making the position directly accountable to voters.

Commissioner Powers for P&C Insurance

Rate Regulation System

Mississippi uses a file-and-use system for most P&C insurance:

How File-and-Use Works

1. Insurer Files Rates: Insurance company submits rate filing to MID
2. Immediate Use: Insurer can use rates immediately after filing
3. MID Review: Department reviews filing for compliance
4. Action if Needed: MID can disapprove rates if found excessive, inadequate, or unfairly discriminatory
5. Retroactive Adjustment: If disapproved, insurer must adjust rates and refund premiums if necessary

Rate Standards in Mississippi

All P&C insurance rates must be:

• Not excessive - Not unreasonably high for the coverage provided
• Not inadequate - Sufficient to maintain insurer solvency
• Not unfairly discriminatory - Based on actuarially sound risk factors
• Actuarially justified - Supported by loss data and statistical analysis

File-and-Use vs. Prior Approval

Exam Tip: Know that Mississippi uses file-and-use for most P&C rates. Insurers can use rates immediately but the MID reviews them and can disapprove rates that violate statutory standards.

Mississippi Insurance Law

Mississippi Code Title 83

Mississippi insurance regulation is codified in Mississippi Code Title 83, which covers:

1. Chapter 1: Insurance Department

   • Organization and powers of the MID
   • Commissioner duties and authority
   • Administrative procedures

2. Chapter 3: Insurer Licensing

   • Requirements for insurers to operate in Mississippi
   • Financial standards and reserve requirements
   • Annual financial examinations and reporting

3. Chapter 5: Producer Licensing

   • Producer license requirements and procedures
   • Continuing education mandates
   • Prohibited practices and penalties
   • Appointment requirements

4. Chapter 11: Policy Requirements

   • Mandatory policy provisions
   • Standard policy forms
   • Consumer protections and disclosures

5. Chapter 15: Auto Insurance

   • Mississippi Motor Vehicle Safety Responsibility Law
   • Minimum coverage requirements (25/50/25)
   • Proof of insurance requirements
   • Uninsured motorist provisions

6. Chapter 17: Rate Regulation

   • Rate filing requirements and procedures
   • Prohibitions on unfair discrimination
   • Actuarial standards

7. Chapter 63: Unfair Trade Practices

   • Prohibited practices in claims and sales
   • Consumer protection provisions
   • Enforcement mechanisms

MID Organization

The Mississippi Insurance Department operates through several functional divisions:

Key Divisions

Consumer Protection Functions

Consumer Assistance

The MID provides robust consumer protection through:

• Consumer Hotline: (800) 562-2957 for complaints and questions (toll-free)
• Consumer Services Division: Investigates complaints against insurers and producers
• Educational Resources: Consumer guides, insurance shopping tips, coverage information
• Complaint Resolution: Mediates disputes between consumers and insurers
• Fraud Reporting: Investigates insurance fraud affecting Mississippi consumers

Complaint Process

1. Consumer Files Complaint

   • Online through MID website
   • Phone: (800) 562-2957
   • Mail to MID Consumer Services Division
   • In person at MID offices

2. MID Review

   • Division reviews complaint for jurisdiction
   • Contacts insurer or producer for response
   • Requests documentation and explanation

3. Investigation

   • MID investigates if warranted
   • May conduct market conduct examination
   • Reviews policies, claims files, correspondence

4. Resolution

   • MID works to resolve dispute fairly
   • May order corrective action
   • Can impose fines or discipline licenses

5. Follow-up

   • Tracks insurer compliance
   • Monitors consumer satisfaction
   • Documents outcome for future reference

Exam Tip: The MID Consumer Hotline at (800) 562-2957 is critical for consumer protection. Know that consumers can file complaints about insurers and producers, and the MID will investigate.

Mississippi FAIR Plan

Purpose and Structure

The Mississippi Fair Access to Insurance Requirements Plan (MS FAIR Plan) provides essential property insurance to Mississippi property owners who cannot obtain coverage in the voluntary market.

Key Features

• Coverage Provided: Wind and hail coverage (named storm coverage)
• Coastal Properties: Essential for coastal properties that cannot get windstorm coverage
• Last Resort: Available only if applicant has been denied by two admitted insurers
• State Mandate: All property insurers licensed in Mississippi must participate
• Assessment Authority: FAIR Plan can assess member insurers for losses

Who Needs FAIR Plan?

Mississippi property owners who:

• Live in coastal areas with high hurricane risk
• Cannot obtain wind/hail coverage from private insurers
• Have been denied by two or more admitted carriers
• Need coverage to comply with mortgage requirements

Note: The Mississippi FAIR Plan was especially important after Hurricane Katrina (2005) devastated the Mississippi Gulf Coast and many insurers withdrew from the coastal market.