Mississippi Administrative Code › Title 19 - Department of Insurance › Part 1 - General › Chapter 35 - (2007-3) Special Non-Binding Arbitration Program for Personal Lines Residential Insurance Claims Resulting from Hurricane Katrina › Rule 19-1-35.02 - Purpose and Scope

Current through June 25, 2024
Mississippi Insurance Department Regulation 2005-2 was
				  adopted by the Commissioner of Insurance on December 20, 2005, to allow for all
				  Mississippi insureds to enter into a non-binding voluntary mediation conference
				  with their insurance company regarding any claim disputes arising from
				  Hurricane Katrina. This program has allowed over 3400 insureds' claim disputes
				  to be resolved, and has seen an 83% successful resolution for all insureds who
				  have participated in the Mississippi Insurance Department Hurricane Katrina
				  Mediation Program.
As a result of the success of the Department's Hurricane
				  Katrina Mediation Program, the Department was contacted by U.S. District Judge
				  L.T. Senter, Jr., who is presiding over most of the Hurricane Katrina lawsuits
				  filed in the U.S. District Court in South Mississippi. Judge Senter asked the
				  Department to include in its regulation a mediation program for those insureds
				  who had lawsuits pending in his court. The Commissioner of Insurance thereby
				  adopted Mississippi Insurance Department Regulation 2006-4, which allowed any
				  court of competent jurisdiction to order any party in litigation to participate
				  in the Mississippi Department of Insurance Hurricane Katrina Mediation Program.
				  This program is experiencing a successful resolution rate of approximately 50%
				  for all litigants who participate.
However, even with the success of both mediation programs,
				  there are insureds who still do not have their Hurricane Katrina claims
				  resolved. Representatives of the Department have been working on multiple
				  fronts in an effort to find other means to have claims paid and lawsuits
				  resolved so Mississippi can continue its rebuilding and recovery.
Therefore, on March 30, 2007, Emergency Regulation 2007-3 was
				  promulgated by the Commissioner of Insurance. On July 27, 2007, the Emergency
				  Regulation was extended for ninety (90) days. Due to the success of the
				  non-binding arbitration program, the Commissioner of Insurance hereby files to
				  make Emergency Regulation 2007-3 a permanent Regulation.
This Regulation establishes a special non-binding arbitration
				  program for personal lines residential insurance claims resulting from
				  Hurricane Katrina. It creates procedures for notice of the right to
				  arbitration, request for arbitration, assignment of arbitrators, payment for
				  arbitration, and the conduct of arbitration proceedings.
This program will allow insureds another avenue to try and
				  have their claim resolved without requiring the insured to settle or
				  extinguishing their right to file legal action if the matter is not resolved.
				  It will also allow Judge Senter and any other court of competent jurisdiction
				  to order any litigant before their Court to participate in this non-binding
				  arbitration program in addition or as an alternative to non-binding
				  mediation.
Except as otherwise provided in this Regulation, the
				  procedures established by this Regulation are available to all first party
				  claimants who have not commenced either litigation or the appraisal process who
				  have personal lines claims resulting from damage to residential property in
				  Mississippi caused by Hurricane Katrina. Insureds who have elected to commence
				  the appraisal process under their policies must first complete that process
				  prior to being eligible to request the arbitration procedures established
				  hereunder. This Regulation does not supersede an insured's right to commence an
				  appraisal process under their policy or to request non-binding mediation. This
				  Regulation does not apply to commercial insurance (including forced-placed
				  lender protection programs), private passenger motor vehicle insurance or to
				  liability coverage contained in property insurance policies.
The arbitration procedures established under this Regulation
				  shall not be available to the insured where the underlying issue is whether the
				  policy was canceled, non-renewed or lapsed prior to the loss resulting from
				  Hurricane Katrina. Insureds may submit these issues to the Consumer Assistance
				  Division of the Department for review.
Miss. Code Ann. §
										83-1-47
				  (Rev. 2011)