Legislative Update 31

September 07, 2008

Dear Friends,

While Hurricane Gustav did not cause the kind of severe damage it could have, the storm left its imprint on the Mississippi Gulf Coast. According to the latest information from the Mississippi Emergency Management Agency (“MEMA”), Gustav destroyed 17 homes in Mississippi, caused major damage to 37 others, and minor damage to 666 homes. The storm destroyed 21 mobile homes, caused major damage to 8 mobile homes, and minor damage to 620 mobile homes. MEMA reports that 1 Gulf Coast business was destroyed while 13 received major damage and 36 others sustained minor damage.

The Chairman of the Conservation and Water Resources Committee, Rep. John Mayo, has cancelled the scheduled hearings along the Gulf Coast. Chairman Mayo plans to reschedule the hearings for later in the year. I will pass along new dates and times when the hearings are rescheduled.

The House Insurance Committee will hold a public hearing on Gulf Coast housing issues on Thursday, September 25 at the Mississippi Coast Coliseum and Convention Center in Biloxi. I encourage all of you to attend and take part in this important hearing.

After months of negotiations, State Farm and Allstate have come to an agreement with Insurance Commissioner Mike Chaney on details of filings.

Allstate will see a statewide average increase of 13.9% on policies with wind and hail coverage effective September 22 for new business and November 6 for renewals.

State Farm, which made its request for rate increases in 2006, has been granted a statewide average increase of 13.6% that will go into effect November 1 for new business and December 1 for renewals.

In a press release, Commissioner Chaney said, “I’m a homeowner in Mississippi too and I don’t like to see any increases in insurance premiums. Some rate increases must be granted to keep companies doing business in the state. However, I would like to point out that even with the increases; premiums from these companies will still be much cheaper than being put into the costly, state-run Wind Pool.”

The Mississippi Insurance Department (“MID”) will be posting maps of rate changes associated with these filings on its website at www.mid.state.ms.us. A home inventory checklist is also available on the MID website.

Please review your policy closely and purchase flood insurance if you haven’t done so already. I would also encourage you to check with your local insurance agent to see how these changes will affect you.

How to Contact Me

If you have any questions or concerns, I invite you to call me on my cell phone at 228-326-7649 or e-mail me at bjones@house.ms.gov. Please feel free to forward this report to folks in our district and let me know if I need to add someone to my list.

I will also be posting my updates and House related news on my campaign website at www.electbrandonjones.com.

Thank you for the opportunity to serve.

Brandon