MS HB1400

Creates the "Unfair Claims Settlement Practices Act" to establish standards for investigation and disposition of insurance claims for Mississippi residents, excluding workers' compensation, fidelity, suretyship, and boiler and machinery insurance.

Defines 14 specific unfair claims practices including misrepresentation of policy provisions, failure to acknowledge communications promptly, inadequate investigation, unreasonable delays, and failure to provide claim forms within 15 days of request.

Authorizes the Commissioner of Insurance to issue cease and desist orders against insurers engaging in unfair practices either flagrantly or with frequency indicating a general business practice.

Establishes penalties of up to $1,000 per violation (capped at $100,000 aggregate) for standard violations, or up to $25,000 per violation (capped at $250,000 aggregate) for flagrant violations committed in conscious disregard of the act.

Allows the Commissioner to suspend or revoke an insurer's license and impose additional penalties of up to $25,000 per violation (capped at $250,000 aggregate) for violations of cease and desist orders; effective July 1, 2011.