Rule 19-1-41.09 - Notice of Hurricane DeductiblesA. Insurers are required to provide clear and prominent notice of all hurricane deductibles. Notices of hurricane deductibles must comply with the provisions of this Regulation; Miss. Code Ann. § 83-2-3; and HB 756, 2014 Regular Session.1. The notice shall be included in either the policy issuance and renewal package; in a separate mailing sent at the time of policy issuance or renewal; the Outline of Coverage and Comprehensive Policy Checklist; or the billing statement.2. The notice shall clearly and fully disclose all details pertaining to all hurricane deductibles in no less than 10 point type.a. While the information provided will vary depending upon the specifics of the deductible, at a minimum the insurer must explain how the deductible will be applied and details about when the deductible applies.b. The purpose of the notice is to inform the insured of all information necessary to make an informed decision concerning the hurricane deductibles in the policy.c. Insurers are strongly encouraged to include the actual dollar amount of the percentage deductible based on the Coverage A coverage amount on the notice. If the insurer is unable to do so, the notice must specify that the actual dollar amount is included on the declarations page.B. Insurers must offer a practical example of how the hurricane deductible works. 1. The example does not have to be tailored to the insured value of the specific property but must show clearly how the deductible works in a hurricane scenario.2. The actual dollar amount of a percentage deductible based on the Coverage A coverage amount must be shown on the declarations page.C. The provisions of this Regulation provide the minimum that must be included in the notice. Insurers may provide any other information to assist in the insured's understanding of the deductible and its application to the insurance policy.D. Insurers must file their Notice of a Hurricane Deductible with the Department prior to use. Policies issued or renewals processed on or after October 1, 2014, must include a Notice of Hurricane Deductible if the policy includes a hurricane deductible.19 Miss. Code. R. 1-41.09
Miss. Code Ann. §§ 83-5-1; 83-2-3 (Rev 2011); HB 756, 2014 Regular Session