Lawmakers To Tackle Post-Katrina Insurance

In a week from Tuesday, lawmakers will return to the State Capitol to begin their 2007 legislative session. One issue they'll try to tackle is getting available and affordable insurance for all Mississippians.

It's a key issue, lawmakers say, no one wants to talk about, but one that demands action to keep companies writing policies in the state.

"The insurance companies are waiting right now for us do something in the legislature. They're waiting," says Senate Insurance Chairman Dean Kirby.

Lawmakers are considering spending 30 million dollars next year to bail out the state Wind Pool, the insurer of last resort in the six coastal counties. "We're going to have to put some money in there to jump start," says Rep. Bobby Moak.

Sen. Kirby is hopeful that money will come from the federal government. He and Moak support several long term measures that other states are already implementing.

Lawmakers could give the Wind Pool underwriting authority, which would allow them to keep their profits and set a range of premiums. Insurance companies could be allowed to recoup some of their losses paid out. And the state could offer tax incentives.

"We need tax incentives for the people buying the policies and we need tax incentives also for the insurance companies that are actually willing to write wind coverage on the Coast," says Kirby.

Though there are no easy answers, lawmakers say they've got to act this legislative session, realizing they won't make everybody happy. "I don't think what we end up having all the insurance companies are going to like and we know that," says Kirby. "All the insured aren't going to like it and we know that as well."

Then there's also heat from policy holders in Central and Northern Mississippi who don't want to pay higher premiums to support losses on the Coast. Moak says it's already happening and it needs to be discussed. "The legislature and the population of this state needs to get educated on exactly what are these increases we're seeing," he says.

Insurance Commissioner George Dale was not available for comment Tuesday. State offices were closed for the holiday.