(a) “Essential property insurance” means insurance against direct loss to property from the risk of windstorm and hail in the manner as defined and limited in the standard real property and contents insurance forms approved by the commissioner. Essential property insurance may include coverage for either the actual cash value or replacement cost value of the structure and contents. Essential property insurance includes builders risks coverage. The extent of risk covered, the insuring language and the exclusions are all subject to approval by the commissioner. Policies, rules and rates shall be filed with the commissioner in the manner provided for insurance companies.

(b) “Association” means the Mississippi Windstorm Underwriting Association established pursuant to the provisions of this chapter.

(c) “Plan of operation” means the plan of operation of the association approved or promulgated by the commissioner pursuant to the provisions of this chapter.

(d) “Insurable property” means real property, and contents therein when requested, at fixed locations in the coast area, which property is determined by the association to be in an insurable condition and otherwise meets the underwriting requirements of the association. Any one- or two-family dwelling built, rebuilt, altered or remodeled in compliance with the applicable building codes, including design-wind requirements, that is not otherwise rendered uninsurable by reason of use, occupancy or state of repair, shall be an insurable risk. Neighborhood area, location and environmental hazards beyond the control of the applicant or owner of the property shall not be considered in determining insurable condition. “Insurable property” shall not include insurance on motor vehicles or creditor placed insurance on mobile homes. “Insurable property” includes mobile homes, modular homes or manufactured housing that are installed in compliance with applicable codes.

(e) “Commissioner” means the Insurance Commissioner of the State of Mississippi.

(f) “Coast area” means Hancock, Harrison, Jackson, Pearl River, Stone and George Counties.

(g)

(i) “Net direct premiums,” for purposes of calculating percentages of participation for assessable insurers for the year 2007, means gross direct premiums, excluding reinsurance assumed and ceded, written on property in this state for the risk of windstorm and hail less return premiums upon cancelled contracts, dividends paid or credited to policyholders, or the unused or unabsorbed portion of premium deposits. “Net direct premiums” includes the premium charge component for the risk of windstorm and hail to property in all policies, including multiperil and other policies that package or combine coverage for other risks. The plan of operation shall prescribe the portion of premium allocated for the risk of windstorm and hail in multiperil and other policies that package or combine coverage for other risks. “Net direct premiums” shall not include farm property. “Net direct premiums” shall not include the property components of motor vehicles and other mobile property, but includes premiums for the risks of windstorm and hail for mobile homes, modular homes or manufactured housing.

(ii) “Net direct premiums,” for purposes of calculating percentages of participation for assessable insurers after the year 2007, means those premiums reported by the assessable insurers in their annual statements to the Department of Insurance that were charged for insurance for any and all risks on real property and contents in the state. The department shall determine which lines of real property and contents insurance shall be included in the calculation of net direct premiums. The included real property and contents insurance lines may be changed from time to time in the discretion of the commissioner. “Net direct premiums” shall not include premiums for insuring farm property that are reported timely to the association as provided in the plan of operation.

(iii) The commissioner is authorized and directed to provide to the association annual statements, other reports and any statistics necessary to provide the information herein required and which the commissioner is hereby authorized and empowered to obtain from any assessable insurer.

(h) “Farm property” means property used for farming purposes; however, it shall not include any property used for dwelling purposes or any outbuildings used in connection therewith.

(i) “Losses” includes expenses for the adjustment and resolution of claims and operational and other general expenses.

(j) “Bonds, loans, lines of credit and indebtedness” include interest, finance charges, and any and all other costs associated with the financing.

(k) “Percentage of participation” for an assessable insurer means the percentage determined by dividing the assessable insurers net direct premiums written in this state in the previous year by the aggregate net direct premiums written in this state by all assessable insurers of the association in the previous year. The percentage of participation may be modified as provided in Sections 83-34-9(3) and 83-34-13(2).

(l) “Nonadmitted insurers” means those insurance companies defined in Section 83-21-17, and any other companies and persons selling insurance on risks in Mississippi that are not licensed to do business in the State of Mississippi.

(m) “Agents placing insurance through nonadmitted insurers” means those agents defined in Section 83-21-19 and any other agents placing insurance through a nonadmitted insurer.

(n) “Assessable insurer” means each and every insurer authorized to write, and engaged in writing, property insurance within this state on a direct basis.

(o) “Minimum reserve” means an amount set forth in the plan of operation which is maintained by the association for the payment of salaries and other expenses necessary for the continuous and ongoing operation of the association.

(p) “Recoupable assessment” means any assessment, in whole or in part, that is levied on and payable by assessable insurers to the association which is directly recoverable from policyholders for any covered event. Any assessment levied due to a covered event occurring during the calendar year 2019 shall be a recoupable assessment.

(q) “Nonrecoupable assessment” means any assessment levied on and payable by assessable insurers to the association which is not directly recoverable from policyholders.

(r) “Excess deficit” means a deficit that exceeds available surplus, reinsurance, recoupable and nonrecoupable assessments and other reasonably available assets of the association. The minimum reserve, as set forth in the plan of operation, shall not be considered reasonably available assets of the association when determining whether an excess deficit has occurred.

(s) “Covered event” means an event, such as a hurricane, other windstorm or hailstorm, which causes losses covered by the policies issued by the association to its policyholders.