In a statement released today, the Indianapolis-based National Association of Mutual Insurance Companies (NAMIC) said it would "strongly oppose any proposal in Mississippi that would enact elements of legislation recently adopted in Florida," and that it would work to defeat the legislation.

"This legislation is punitive and will only worsen the insurance market in Mississippi," Neil Alldredge, NAMIC's vice president of state and regulatory affairs, said in a statement.

"Unfortunately, consumers will pay the price for this action," Mr. Alldredge said. "It sends a clear signal to every insurer that Mississippi is a hostile environment. Insurers are focused on rebuilding the coast and Mr. Hood seems intent on playing politics."

He continued that the actions would "punish insurers and destabilize the market" despite the fact that more than 90 percent of claims have been settled.

The Des Plaines, Ill.-based Property Casualty Insurers Association of America's (PCIA) interim Chief Executive Officer June Holmes said in a statement that both insurers and public policymakers in Mississippi want to see balance and stability in the market while helping policyholders with their insurance needs. Mr. Hood's proposal, however, would "only undermine efforts to assure that all consumers in the state have access to homeowners insurance protection that fits their personal needs and budgets."

"At a time when responsible state leaders are taking measured steps to rebuild a competitive market, the attorney general is proposing a draconian approach that will reduce consumer choice for both homeowners and auto insurance policies," she said. "While such a measure may be attractive for short-term political gain, [it] will do nothing to make insurance more affordable or available to the citizens Mr. Hood represents."

Ms. Holmes noted that the situation in Florida is different from Mississippi, where catastrophic exposures are far lower in terms of both value and number of properties. She called on lawmakers to consider other options such as enactment of statewide building codes that would reduce losses from future storms, market assistance programs, wind pools and state catastrophic risk reinsurance programs.

"These options will allow lawmakers to address the needs of coastal residents without unfairly transferring the cost to lower risk consumers," she said. "We look forward to working with Mississippi legislators on a balanced, long-term approach that makes homes stronger and families safer."