October 1, 2007

The broad objectives of the Plan are to make Essential Property Insurance available to

responsible applicants on eligible property located in the Coast Area of Mississippi who have

been unable to secure such insurance in the normal insurance market and to fulfill the

purposes provided by House Bill 274, Laws of 1987 and HB1500 of the 2007 Legislative

Session. The "Coast Area" consist of George, Hancock, Harrison, Jackson, Pearl River and

Stone Counties of Mississippi.

Any person having an insurable interest in insurable property at fixed locations in the Coast

Area.

Application forms may be secured from the Mississippi Windstorm Underwriting Association,

Post Office Box 5389, Jackson, Mississippi 39296-5389 or http://www.msplans.com/mwua.

Builder’s risk and real property at fixed locations in the Coast Area or the contents located

therein.

Motor vehicles and any structure commenced on or after June 1, 1987, not built in

substantial compliance with the Standard Building Code, including the design-wind

requirements therein, and contents in such structure. An exception to the preceding is

Trailer or Mobile Home Risks (see Section II, Paragraph 6.C).

Windstorm and Hail Insurance (Specific Peril Policies)

A. General Provisions:

October 1, 2007

“Named Storm” means a storm system 1 that has been named by the National Hurricane Center of

the National Weather Service.

October 1, 2007

(1) Windstorm and Hail Form No. 4001 (Effective 1-00) with appropriate fire form will

be attached to the Standard Fire Insurance Policy.

(2) Except as otherwise specifically provided, all windstorm and hail property damage

policies shall be written subject to 80% or higher coinsurance clause. Dwellings

(One through Four Family) are subject to loss settlement.

(3) Mississippi State Rating Bureau Extended Coverage Endorsement construction

classification rules shall apply to windstorm and hail policies.

(4) (a) All policies on properties in the "Coast Area" except policies written without

coinsurance (See Paragraph 6.A. (3) following), and policies covering Trailer or

Mobile Home Risks (See Paragraph 6.C. following), shall be subject to Special

Windstorm and Hail Deductibles by attaching the proper special endorsement as

follows:

Dwelling Including Farm Dwelling (One Through Four family) Deductible

Form No. 6001 (Effective 10-98) ($500.00 Deductible); Dwelling policies

with coverage over $500,000.00 Miss. No. 6013 (effective 09-03) (

$1,000.00 Deductible)

Dwellings Including Farm Dwelling ( One through Four- Families and Trailer

or Mobile Homes) 2% Named Storm Deductible. Miss. No. 6012 (Effective

10-07)

Commercial including Farm Property Other Than Dwelling (Other Than One

Through Four Family Dwelling) Deductible Form No 6007 (Effective 1-00)

Miss. No. 6007 (2%-$750 Minimum)

No Credit in rates will be allowed for these deductibles.

(b) Optional Named Storm1 Deductible for Dwelling, including Farm Dwelling (One

through Four Family and tenant occupied multi-unit dwelling complex) Mobile

October 1, 2007

(5) Dwellings including farm dwelling (one through four families and trailers or mobile

home risks) are subject to a 2% Named Storm Deductible Mississippi No. 6012,

$500.00 minimum, or $1,000.00 minimum, when a named storm is located within

the boundaries of 80 degrees West longitude and 20 degrees North latitude.

(6) Commercial properties may be insured for replacement cost. The application for

insurance in the Mississippi Windstorm Underwriting Association shall indicate that

replacement cost coverage on commercial properties is desired by proper

completion of the appropriate section. A special $50.00 non-returnable fee shall be

included with the application when replacement cost coverage for commercial

properties is requested. Replacement cost insurance in the Mississippi Windstorm

Underwriting Association shall only apply when other property insurance covering

perils other than windstorm and hail for the location is also based on replacement

cost. The amount of replacement cost insurance for the location covering perils

other than windstorm and hail together with the coinsurance percentage applicable

thereto, shall be provided in the application for coverage in the Mississippi

Windstorm Underwriting Association. Mississippi Windstorm Underwriting

Association Replacement Cost Endorsement, Mississippi Form No. 6009 or

Mississippi Form No. 6010 (effective 10-98) is required.

(7) Coverages that are not provided are: Time Element and Reporting Form.

(8) Blanket insurance coverage may be provided for commercial buildings and contents

at one or multi locations (location in this usage is when the premises is not broken

by a public thoroughfare or property of others or railroads), when a statement of

values has been submitted and proper notice is shown on the application. If written

blanket at one location or blanket covering more than one location, the limits

continues to be $1,000,000.00. Coinsurance adjustment is applicable per Section

II, Item 6. Rates, A., sub-item (3), and the coinsurance rule is eliminated.

A. Property other than Dwellings (One through Four Family and tenant occupied multi-unit

dwelling complex), Trailer or Mobile Home Risks

(1) The MWUA 80% coinsurance clause Windstorm and Hail rate for an item shall be

the Mississippi State Rating Bureau Extended Coverage Rate or Wind and Hail rates

filed and approved for use by MWUA.

(2) Where maximum MWUA limits are applicable and Windstorm and Hail insurance is

written with 50% coinsurance use the MWUA 80% Windstorm and Hail rate for an

item and multiply by 1.5.

(3) Where maximum MWUA limits are applicable and Windstorm and Hail insurance is

written with no coinsurance use the MWUA 80% coinsurance clause Windstorm and

Hail rate for an item and multiply by 2.5 (See § 8.A. Limits).

October 1, 2007

Note: 2% Windstorm and Hail Deductible Clause, 6006 Miss. 1-00, is mandatory.

(4) Where Windstorm and Hail Insurance is written at higher than 80% coinsurance,

use the MWUA 80% coinsurance clause Windstorm and Hail rate for an item and

reduce 5% for 90% coinsurance and 10% for 100% coinsurance.

B. Dwellings (one through Four Families and tenant occupied multi-unit dwelling complex)

(1) The MWUA Windstorm and Hail rate for an item shall be the Mississippi State Rating

Bureau Extended Coverage Rate or Wind and Hail rates filed and approved for use

by MWUA.

(2) Dwellings which have been constructed and certified by the Institute for Business

and Home Safety (IBHS)as qualifying for a Fortified Home Designation may receive

the following credits upon receipt of documentation by the Association confirming

such designation.

Policies written within one year of achieving Fortified Home Designation - 25%

Policies written within two years of achieving Fortified Home Designation - 20%

Policies written within three years of achieving Fortified Home Designation - 15%

Polices written over three years after achieving Fortified Home Designation - 10%

C. Trailer or Mobile Home Risks

The following net rate (no further increase applicable) and rules shall apply to trailer

or mobile home risks and their contents in the "Coast Area" when insured at a

specific location if on permanent foundation with utility connections.

All policies covering trailer or mobile home risks shall be subject to Special

Windstorm and Hail Deductible Form Miss. 6008 Effective 10-98. ($500 Deductible)

and Miss. No. 6012 (10-07) Named Storm 2% Wind and Hail Deductible Clause.

Trailer or mobile home risks to be eligible for coverage in the MWUA shall be

anchored and secured in substantial compliance with the Standard Building Code,

including the design-wind requirements therein, and so certified by a local building

inspector, contractor, engineer or architect. Compliance with the following

provisions would meet the code requirements, other than elevation, for attachment

of trailer or mobile home risks to foundation.

(1) Piers

(a) Pier foundations shall be installed directly under the main frame

(or chassis) of the mobile home. The piers shall not be further apart

October 1, 2007

than ten (10) feet on centers, and the said main frame (or chassis),

front or back, shall not extend further than five (5) feet beyond the

center line of the end piers.

(b) All grass and organic materials shall be removed and the pier

foundation placed on stable soil. The pier foundation shall be placed

on level rock, gravel or inserted at least 4" into sand or loam soil.

The pier foundation shall be a regular 8"x8"x16" concrete block,

placed on its side with open cores horizontal, the 16" dimension shall

be at right angles to and centered upon the main frame members of

the mobile home.

(c) Piers shall be constructed of regular 8"x8"x16" concrete block,

with open cells vertical, placed above the pier foundation block. A

2"x8"x16" treated wood plate shall be placed on the top of the pier

with shim shingles fitted and driven tightly between the wood plate

and the main frame where necessary in order to provide uniform

bearing.

(2) Tie-downs

(a) Each mobile home shall be provided with a minimum of four (4)

anchors and tie-downs as hereinafter provided: ties shall be

attached to the main framing members in a manner that will not

release under the vibratory loading. Ties shall be made snug by use

of ½" dropped-forged steel turnbuckles with welded eyes connected

to ground anchors with d" wire rope. Ties and anchors shall be

placed adjacent to the front and rear piers and spaced no more than

twenty (20) feet apart on each side of the unit.

(b) Ties passing over mobile home may be used in addition to, but

not in lieu of, the ties to the main frame. Such ties should not come

in contact with the coach body except at points which have been

reinforced or otherwise properly protected so that this additional

load will not damage the coach body.

(3) Ground Anchors

(a) An approved ground anchor shall be one of the following: A steel

screw auger with minimum of e" diameter rod with welded eye on

one end and a minimum auger diameter of six (6) inches on the

other end. The auger shall penetrate at least 3½ feet below the

ground surface.

(b) A steel e" welded eyebolt with a 6" hook, or a steel U-shaped e"

rod with two 3" hooks, cast into a reinforced 4" concrete slab not

less than 75 square feet in area.

October 1, 2007

(c) A steel e" welded eyebolt, or a steel U-shaped e" rod, cast 6"

into poured-in-place concrete deadman at least 6" in diameter and

2 feet deep.

All policies will be issued for a term of one year.

A. On property located in the "Coast Area", the Association shall undertake , to place

insurance up to the reasonable insurable value of the property, subject to a maximum at

any one location for all insured interests of:$1,000,000. on dwellings not exceeding four (4)

families and $250,000 on dwelling contents contained therein; $1,000,000 on all other

eligible property including manufacturing or processing plants. Location means real and

personal property consisting of and contained in a single building, or consisting of or

contained in contiguous buildings when rated as one (1) risk by the Mississippi State Rating

Bureau. In the case of manufacturing or processing plants, a multi-location or a commercial

risk written blanket with multi-locations, the maximum coverage shall apply to the total

location or locations when written blanket. A location is applicable when it is not broken by

a public thoroughfare, property of others or railroads. When the maximum value is limited

to $1,000,000.00 per building, location or multi-locations, when written blanket, and Rule

(3) of Sub-Item 6. A., Rates, Section II of the Manual of Rules and Procedures applies, the

Coinsurance rule is eliminated.

B. Coast Plan policies written for maximum limits may be endorsed allowing them to act as

primary coverage. A specific request must be made to MWUA requesting the endorsement

(see Rule II. 6. A. [3]).

C. Dwelling policies with $500,000 or more coverage up to the limit of $1,250,000, (building

and contents) will have a mandatory $1,000 minimum policy deductible.

A. Premiums are payable by full pay or through a four pay plan direct bill system by check

or money order, by mail or in person during normal working hours, excluding holidays at

the office of the Association. Full payment or required payment plan deposit must be

received by the Association before coverage can become effective.

Premium financing arrangements will not be honored by the Association, except that in the

event of default in payment under a premium payment arrangement the Association shall

cause a Notice of Cancellation to be issued upon proper notification from agent of such

default and appropriate return remittance shall be provided.

B. DIRECT BILL SYSTEM may be utilized by making a down payment of 30% of the gross

premium with application, with one (1) 30% payment due three months after inception and

two (2) remaining installments of 20% each spread three months apart. A ten dollar

($10.00) service fee will be added to each of three quarterly installments. Installment

payments will be billed directly to the insured.

October 1, 2007

C. Minimum Premium: There is a minimum premium of $150.00 for dwelling policies, one

through four families or tenant occupied, multi-unit dwelling complexes, for building or

contents. A minimum premium of $250.00 is applicable to all commercial policies; building

and/or contents.

NOTE: Minimum premium cannot be placed on the Direct Bill Payment Plan System.

The commission to a licensed agent or broker is 15% for new business and 10% on

renewals beginning July 1, 1996. Agents will not deduct commission from any payments.

Agents or brokers will receive their commission as the insured pays their installments and

not on a written basis. Agents or brokers must refund ratably to the Association,

commission on the unearned portion of canceled liability and on reduction in premiums. No

commission is payable on inspection fees.

Unless in direct conflict with this Plan, the general rules, practices and procedures of the

Mississippi State Rating Bureau shall apply.

A. Applications shall be on behalf of the owner of the insurable interest by a licensed

Mississippi resident agent or broker authorized by such owner. All applications submitted

must be on the form prescribed by the MWUA.

B. Applications must be submitted with appropriate payment of premium before coverage

is provided.

C. All applicable items on the application must be completed in detail. In addition, when the

structure for which insurance is desired (or contains contents for which insurance is

desired) was commenced on or after June 1, 1987 and is located in an area in which the

Standard Building Code has not been adopted, attach certificate from a local building

inspector, contractor, engineer or architect certifying that the structure is built in substantial

accordance with the Standard Building Code, including the design-wind requirements

therein. MWUA Form J was specifically designed for this purpose and copies may be

obtained upon request.

D. The following schedule of Inspection Fees must accompany the initial application:

(1) Dwellings not exceeding four (4) families and farm property and mobile homes -

Thirty Dollars ($30.00).

(2) All other properties - Forty Dollars ($40.00).

October 1, 2007

(3) Reinspection of properties - Ten Dollars ($10.00).

(4) When five (5) or more buildings are submitted to the Association at the same time

covering property at one premise, with a common inception date, and under the

same ownership, then specific application may be made to the Association for a flat

inspection fee.

(5) Special Inspection Fees: MWUA is to be reimbursed, by the insured, for the actual

fee or fees for conducting inspections of property located on any of the barrier

islands. The inspection fee is not to exceed $500.00.

A. Upon receipt of the application, an inspection of the property will be made by the

Mississippi State Rating Bureau or other organization designated to make inspections as

required under the Plan.

B. A representative of the inspection agency may contact the applicant or his authorized

representative to arrange the time of the inspection as the applicant or his authorized

representative may be required to accompany the inspector during the inspection. This may

be desirable so that the inspector can point our features of construction, occupancy or

physical hazards which may result in declination of the application.

C. A copy of the completed inspection report will be sent to the Association.

D. A copy of the inspection report will be made available to the applicant or his agent upon

request.

A. Inspection reports and rating details will be examined by the Association to determine

if the property meets reasonable underwriting standards.

B. "Reasonable underwriting standards" include, but are not limited to, the following:

(1) The amount of insurance requested, together with other insurance, is within

reasonable relationship to the actual cash value of the property involved;

(2) Physical condition of the property, such as its construction, evidence of previous

damage or general deterioration;

(3) Its present use or housekeeping, such as vacancy, overcrowding, storage of rubbish

or flammable materials;

(4) Violation of law, public policy, morals and the character or integrity of the property

owner or occupancy;

(5) No new or increased coverage shall be bound or applications for new or increased

October 1, 2007

coverage accepted when a named storm is in the Gulf of Mexico or within the

boundaries of 80 degrees West longitude and 20 degrees North latitude (a “named

storm” is a storm system that has been named by the National Hurricane Center of

the National Weather Service).

(6) A risk shall not be declined for neighborhood area, location or environmental

hazards beyond the control of the applicant or owner of the property.

(7) Property insurance, if any, other than windstorm and hail insurance written through

the Association, shall be provided by insurers who are assessable insurers in the

Association, except this requirement shall not be applicable when an application for

insurance in the Mississippi Windstorm Underwriting Association is submitted with

a copy of the affidavit required by the Mississippi Commissioner of Insurance. (This

rule does not apply when Section II, Paragraph 8B, is applicable.)

(8) Applications for wind and hail coverages for property located on any of the barrier

islands must provide evidence of flood coverage if the property is located in an area

where flood coverage is available.

A. A policy will be issued by the Association upon full payment of premium or after required

payment plan deposit is received. Insurance will become effective at 12:01 A.M., Standard

Time, on the day following the date premium is received by the Association.

B. Hand delivery of applications may be accepted at the office of the Association only

during normal working hours which excludes holidays. Hand delivered applications are

subject to all other underwriting rules, procedures and guidelines pertaining to the

acceptance of applications

Application (Form MS-U-0210) shall be completed with proper inspection fee, and full

annual MWUA remittance or required payment plan deposit attached.

For Dwelling Properties located in the Coast Area, the full annual MWUA remittance or

required payment plan deposit shall be determined by establishing the full annual MWUA

premium from MWUA Dwelling Rates.

For Commercial Properties located in the Coast Area, the full annual MWUA remittance or

required payment plan deposit shall be determined by establishing the full annual MWUA

premium as provided in "Section II, Paragraph 6". In the event of a risk on which

Mississippi State Rating Bureau rates have not been established, an estimated rate should

be used, or a request for an estimated rate should be directed to the Mississippi State

Rating Bureau or the MWUA.

Upon receipt of all necessary data, and if the location is considered to be acceptable, policy

will be issued with copies forwarded to the producer with insurance bound effective at

October 1, 2007

12:01 a.m., Standard Time, on the day following the date proper data was received by the

MWUA, or effective on the date the application is mailed if sent by registered or certified

mail, unless the application stipulates a later date. If the location is not acceptable, is

borderline or if data is incomplete, the producer will be so notified and policy will not be

issued.

If it is determined following inspection that estimated or published rates or premiums

charged are incorrect, adjustment in premiums will be made effective as of the inception

date of coverage.

A. Coverage on property which fails to meet reasonable underwriting standards will be

declined and the applicant or his representative will be advised of the measures, if any,

which if taken would make the property insurable.

B. When the Association is notified that such improvements have been made, the property

will be reinspected upon payment of reinspection fee.

All documents issued by the Association will bear a "MWUA" policy number. Reference

should be made to the "MWUA" number in any communication to the Association with

respect to Association risks.

A. Requests for changes of the policy or cancellation shall be addressed in writing to the

Association on an approved change form. No change will be made except as it relates to

existing location under the policy in question. All applicable items of this form shall be

completed in detail.

October 1, 2007

B. If additional premium is required, the change will become effective when full payment

of the additional premium is received in the office of the Association (or at such later date

as may be specified by the Insured), or the additional premium is added to the Direct Billing

Program.

C. Changes not involving change in premium will become effective immediately upon action

of the Association.

D. If the change calls for a return premium and the policy is endorsed or canceled, the

return premium will be remitted by the Association.

A. Policy assignment to a new owner will not be permitted (except as indicated in

paragraph [c] below). If coverage for a new owner is desired, a new application must be

submitted to the MWUA in accordance with rules and underwriting standards regulating

submissions and issuance of new policies.

B. At the specific request of the insured, upon the execution of an agreement for sale of

the insured property, the Association will endorse such policy to cover the interest of the

insured and the purchaser. Such endorsement shall provide coverage for not exceeding

thirty (30) days or until other windstorm and hail insurance for the purchaser is effective.

In no event will this be construed to extend coverage beyond normal expiration date.

A request for endorsement as outlined above must be received by the MWUA within fifteen

(15) days of the date of the agreement of sale and such date must be specified on the

request. Coverage will then be made effective from the date of the agreement of sale for

the 30-day period.

C. Policies which have no change in occupancy may be assigned to a new owner by

endorsement effective as of the legal date of sale provided:

(1) The request for assignment of interest to a new owner is made on an Application

for change Form D, certifying there has been no change in occupancy, and

(2) the legal date of sale is specified on the request.

A. No policy or binder issued under the Plan shall be canceled by a Servicing Insurer

without the prior approval of the Association. Grounds or such cancellation shall be limited

to:

(1) Non-payment of premium;

(2) Default in payment under a premium payment arrangement;

(3) Evidence of incendiarism;

October 1, 2007

(4) Misrepresentation or concealment of any material fact either before or after loss;

(5) Cause which would have been grounds for non-acceptance under the Plan of

Operation had such cause been known at the time of acceptance; and

(6) Cause arising subsequent to the inspection which would have been grounds for

non-acceptance of the risk under the Plan of Operation had such cause existed at

the time of acceptance.

B. Notice of cancellation, together with a statement of the reason therefor, shall be sent

to the insured and a copy sent to the Association and to the Producer. Such notice shall be

accompanied by a statement explaining that the insured has a right of appeal as hereinafter

provided.

C. When a policy is canceled under this section, such policy shall not be reinstated.

Continued coverage shall be based on a new application subject to all requirements of this

Manual and the Plan of Operation.

D. Mid-Term Cancellations of MWUA Policies - When MWUA policies are placed in the

"Voluntary Market" for the same insured, cancellation will be short-rate using the effective

date of the "Voluntary Market" policy as the effective date of cancellation but in no event

with a date of cancellation more than thirty (30) days prior to the receipt of the request for

cancellation accompanied by the following:

(1) Original MWUA policy or properly executed Lost Policy Cancellation Release, and

(2) Photocopy of the policy (Daily Report) representing the rewritten coverage

reflecting the same insured and coverage equal to or exceeding the (MWUA)

coverage in amount of coverage provided, perils insured against and term.

E. Cancellations at the Request of the Insured - The original copy of the policy, renewal

certificate or a properly executed Lost Policy Cancellation Release must be returned to the

MWUA with a Form "D" requesting cancellation.

(1) Property Sold - Policy will be canceled pro-rata effective the legal date of sale,

provided the legal date of sale is included in the request, otherwise cancellation will

be effective on the date all data required by the Manual is received by the MWUA.

(2) A request for cancellation after a business has ceased operations will be calculated

on a pro-rata basis.

(3) All Other Cancellations at the Request of the Insured - Cancellations for any other

reasons will be canceled short-rate effective the date all data required by this

Manual is received by the MWUA.

A. Losses will be reported promptly to the Servicing Insurer by the Insured or his

representative. A copy of such loss notice will be sent to the Association.

October 1, 2007

B. No adjustment of losses are to be handled by the Producers.

C. All questions pertaining to the adjustment of Association losses, including policy

interpretation, rest with the Servicing Insurer.

A. Reimbursement for loss payments and loss adjustment expenses may be made by the

Association on a monthly basis. The Servicing Insurer shall submit a monthly bordereau of

loss adjustment expenses, payments and outstanding reserves. Such bordereau shall

contain the following information:

(1) MWUA policy number

(2) Servicing Insurer’s claim number

(3) Name of Policyholder

(4) Date of loss - policy year

(5) Amount of Loss paid or outstanding reserve

(6) Loss adjustment expense

(7) Loss supervisory expense

(8) Attach copy of loss and expense drafts for Association files.

B. In the event the Association does not have sufficient funds in hand to pay such

reimbursement monthly, such payments shall be made as soon thereafter as funds can be

obtained by assessment of the assessable insurers

C. Loss adjustment expense shall include the following:

(1) Allocated loss adjustment expense - such as actual cost of adjusters, experts,

salvors, legal fees, etc.

(2) Adjuster expense when handled by staff adjuster.

(3) Loss supervisory expense.

C. The Servicing Insurer’s books and records shall be open to the Association for the

verification and approval of these items.

Assessable Insurers shall receive annually, credit for Essential Property Insurance

voluntarily written and receive appropriate credits as outlined in the Plan of Operation. The

method of determination of such credit shall be as authorized by the Plan of Operation as

implemented by the Board of Directors.

October 1, 2007

A. The Association will submit to its assessable insurers on a semi-annual basis a

statement of in force liability, and on an annual basis a statement of the Association’s

income and expenses and a statement of operating results, expenses and reserves.

B. At the end of each fiscal year (December 31) there will be an annual report to assessable

insurers based on their percentage of participation for the previous calendar year, except

interim reports may be provided upon direction of the Board of Directors. These

percentages will then be used for each assessable insurer’s interim participation in the

Association for the subsequent fiscal year.

A. Any applicant for insurance and any person insured under the Plan of Operation or any

affected insurer may appeal to the Board of Directors within fifteen (15) days after any final

ruling, action or decision of the Association, the Inspection Bureau or a Servicing Insurer.

The Board or and Appeals Committee designated by the Board shall hear and determine

such appeal within fifteen (15) days after the same is filed. Such determination may be

appealed to the Commissioner within thirty (30) days as provided by Statute.

B. Orders of the Commissioner shall be subject to judicial review as provided by Statute.

The Plan will be operated by personnel of the Mississippi State Rating Bureau under

agreement with the Mississippi Windstorm Underwriting Association. However, all

communications on matters pertaining to the Association should be addressed to: