Update: Mississippi Senate Sends Gov. Bill to Give $25M to Wind Pool

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The Mississippi Senate sent Gov, Haley Barbour a bill last week to transfer $25 million into a fund that assists the state wind pool.

The wind pool has about 36,000 policies. Most are held by homeowners in six south Mississippi counties of Hancock, Harrison, Jackson, Pearl River, Stone and George. When the storm hit, the wind pool only had 16,000 policies.

The wind pool is the insurer of last resort for those who need wind coverage in high-risk areas where no private insurer will write policies.

Insurance Commissioner Mike Chaney said rates increased 90 percent for homeowners and 162 percent for businesses after Hurricane Katrina’s storm surge devastated the region.

Some insurance companies stopped writing new policies. That led to a spike in the number insured by the wind pool, which is funded by assessing all insurance companies that provide property coverage in the state.

“One of the most important issues is the availability of affordable insurance,” Senate Appropriations Committee Chairman Alan Nunnelee, R-Tupelo, said March 14. “This bill will go a long way toward that.”

Insurance Commissioner Mike Chaney said in a statement that the money will drop rates 11 percent.

Barbour’s spokesman, Pete Smith, said Barbour will sign the bill.

The $25 million is part of an $80 million package lawmakers approved for the wind pool last year. Smith said the new bill simply gives authority for the $25 million to be transferred for use.

Chaney, who authored the bill that created the $80 million package while in the state Senate last year, has the power to transfer the remaining $55 million to the wind pool program over the next three years with legislative approval to help keep costs down.

“I think this is a perfect example of the Insurance Department, the Governor’s office and the Legislature all working together to help the people of the Gulf Coast and bring insurance rates down statewide,” Chaney said. “I believe that in continuing to work with the insurance companies and the Legislature, we will see more rate reductions in the future.”

The bill is House Bill 1640.