Purpose and Scope

Purpose and Scope 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 insuredswho 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.