NU Online News Service, Dec. 28, 3:19 p.m. EST
The Mississippi Insurance Department (MID) is transferring $19 million to the Mississippi Windstorm Underwriting Association–the state's insurer of last resort–to help stabilize coastal homeowners insurance rates, the department said.
The transfer is already underway and should be completed by the first week of January, the department said in a statement.
"The transfer of these funds should help stabilize premium rates for Wind Pool policyholders," Mississippi Insurance Commissioner Mike Chaney said. "This is just one of many efforts the department is undertaking to help coastal policyholders. We are continually seeking out and researching more ways to bring rates down on the coast."
"With these additional funds and the continued work of these board members, under the leadership of Board Chairman Chris Boone, I believe we can confidently say that we do not anticipate any projected Wind Pool rate increases in 2010," said Wind Pool Executive Director Joe Shumaker.
The department explained that $9 million of the total transfer will come from the Hurricane Disaster Reserve Fund, created in 2006 to settle the state's share of any non-federal matching requirements for Federal Emergency Management Agency grants associated with Hurricane Katrina and other disasters.
The remaining $10 million will come from the Mississippi Windstorm Underwriting Association Reinsurance Assistance Fund, created by the state legislature in 2007 for the purpose of defraying the expenses and costs associated with the purchase of reinsurance.
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