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Bill

HB 1169

MS Insurance Guaranty Association Law; revise to add cybersecurity insurance to.

2025 Regular Session Introduced by Jerry Turner

Expand Mississippi's Insurance Guaranty Association to cover cybersecurity insurance claims when insurers become insolvent, protecting policyholders against cyber losses.

Died In Committee
#insurance #technology
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Bill Summary · HB 1169

Legislative bill overview

HB 1169 would amend Mississippi's Insurance Guaranty Association Law to include cybersecurity insurance coverage under the guaranty fund's protections. The bill expands the types of insurance claims that would be covered if an insurer becomes insolvent, ensuring policyholders have recourse for unpaid cybersecurity insurance claims.

Why is this important

As cyber threats and data breaches increase, more businesses purchase cybersecurity insurance to protect against financial losses from cyberattacks. Without guaranty association coverage, policyholders could lose significant protection if their insurer fails—a particularly concerning gap given the growing reliance on this insurance type. This expansion would align Mississippi's guaranty protections with emerging insurance needs.

Potential points of contention

  • Guaranty fund costs: Extending coverage increases potential claims against the guaranty association, which may require higher assessments on remaining insurers and ultimately higher premiums for all policyholders
  • Coverage scope ambiguity: Defining what qualifies as "cybersecurity insurance" could be complex, as these policies vary widely in what they cover (breach response, business interruption, liability, etc.)
  • Actuarial uncertainty: Cybersecurity insurance claims experience is still being established, making it difficult to predict guaranty fund liability and reserve adequacy

Compiled from official sources — confirm details with the bill’s official record.

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