Senate Bill 2904 Summary

• Revises eligibility requirements for nonadmitted insurers writing business in Mississippi, requiring capital and surplus of either $15,000,000 or the same amount required for admitted insurers, with minimum floor of $4,500,000 for commissioner discretionary approval.

• Creates procedures for the Insurance Commissioner to enter into interstate agreements allocating premium taxes for nonadmitted insurance based on the insured's "home state" as defined under the federal Nonadmitted and Reinsurance Reform Act of 2010.

• Exempts surplus lines insurance producers from conducting due diligence searches for admitted insurance coverage when placing policies for "exempt commercial purchasers" who meet specified financial thresholds (net worth of $20 million, annual revenues of $50 million, or 500+ employees).

• Establishes a nonadmitted policy fee (minimum 5% of premiums) collected by surplus lines producers and remitted to the insurance guaranty association, and extends this fee requirement to insureds who directly procure nonadmitted insurance without using a licensed surplus lines producer.

• Makes technical amendments to surplus lines producer licensing provisions, including biennial licensing fees of $100 and expanded eligibility for nonresident producers.