Mississippi House, Senate Approve Wind Pool Bill

Courtsey of WLOX
Both chambers of the Mississippi Legislature on Thursday approved a bill designed to provide stability for the wind pool -- the insurer of last resort for homeowners in high-risk areas. The bill heads to Governor Haley Barbour.
It is designed to give every wind pool policyholder an estimated $500-a year price break on the premium. The relief would be given for four years, and money to cover it would come from a fund created by the premium taxes paid on insurance policies statewide.
Lawmakers say $20 million a year will be taken from the fund -- that's $80 million over the four years.
Coast leaders say providing stability to the Mississippi Windstorm Underwriting Association, often called the wind pool, is an important step in spurring redevelopment nearly 19 months after Hurricane Katrina left a broad swath of destruction across the southern end of the state.
Any insurance company that writes policies in the state must pay an assessment to the wind pool, which provides coverage in the six southernmost counties. Companies that offer policies in the high-risk areas can write themselves out of the assessment, but many have chosen not to do so.
After Katrina, policyholders statewide saw rate increases as companies tried to cover their costs for the wind pool. Officials say rates on the coast more than doubled in some cases, and the prohibitively high cost of coverage has put the brakes on redevelopment.
(Copyright 2007 by The Associated Press. All Rights Reserved.)