MS HB865

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

Defines unfair claims practices as acts committed flagrantly or with conscious disregard of the law, or with such frequency as to indicate a general business practice, including misrepresenting policy provisions, failing to promptly acknowledge communications, refusing to pay claims without investigation, and unreasonably delaying claim processing.

Grants the Insurance Commissioner authority to issue cease and desist orders against insurers engaged in unfair claims practices after notice and hearing with at least 30 days' notice.

Authorizes penalties of up to $1,000 per violation (capped at $100,000 aggregate) for violations, or up to $25,000 per violation (capped at $250,000 aggregate) for flagrant violations, plus potential license suspension or revocation.

Provides enhanced penalties of up to $25,000 per violation (capped at $250,000 aggregate) for violations of cease and desist orders, with possible license suspension or revocation; takes effect July 1, 2018.