House Bill 785 Summary

• Revises eligibility requirements for nonadmitted insurers to write business in Mississippi, establishing capital and surplus minimums ranging from $4.5 million to $100 million depending on insurer type.

• Authorizes the Insurance Commissioner to enter into agreements with other states to allocate premium taxes for nonadmitted insurance consistent with the Nonadmitted and Reinsurance Reform Act of 2010.

• Exempts surplus lines insurance producers from conducting due diligence searches for admitted insurers when placing nonadmitted insurance for exempt commercial purchasers who meet specific financial thresholds and request such placement in writing.

• Establishes a nonadmitted policy fee (minimum 5% of premium) collected by surplus lines producers and remitted to the insurance guaranty association within 20 days of each quarter.

• Applies the nonadmitted policy fee requirement to insureds who directly procure nonadmitted insurance outside of surplus lines licensees, with payment procedures aligned to premium tax requirements.