1997 Regular Session
To: Banks and Banking
By: Representatives Chaney, Robinson (84th)
House Bill 1586
(As Passed the House)
AN ACT TO AMEND SECTION 75-67-121, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT LICENSEES UNDER THE SMALL LOAN REGULATORY LAW MAY CHARGE BORROWERS THE ACTUAL COST OF ANY PREMIUM PAID FOR NONCREDIT LIFE INSURANCE POLICIES IF CERTAIN CONDITIONS ARE MET; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-67-121, Mississippi Code of 1972, is amended as follows:
75-67-121. (1) Any licensee * * * under this article may charge any borrower on loans of One Hundred Dollars ($100.00) or more the actual cost of recording any instrument executed as security for a loan; any reasonable fee paid to an attorney for investigating the title to any property given as security for a loan; the actual cost of any premium paid for insurance upon any property given as security for a loan, such insurance to be placed with an insurance company agent of the borrower's selection so long as it is licensed to do business in the State of Mississippi; the actual cost of any premium paid for credit life, health and/or accident insurance on any borrower where the amount of insurance required is not in excess of the amount of the loan and the premium therefor is in keeping with that usually and customarily paid for like insurance.
(2) Any licensee under this article may charge any borrower on loans of One Hundred Dollars ($100.00) or more the actual cost of any premium paid for any one or more noncredit life insurance policies, provided that such insurance is optional, is filed with the Department of Insurance, and is underwritten by an insurance company qualified to do business in Mississippi, and provided that the following conditions are met:
(a) The licensee shall not require the purchase of the noncredit life insurance as a condition of receiving any loan or other extension of credit from the licensee;
(b) The licensee shall not make the customer's ability to obtain any current or future loan or other extension of credit from the licensee contingent upon the customer's agreement to purchase the noncredit life insurance or otherwise transact business with the licensee; and
(c) The licensee shall allow the customer to pay the cost of the noncredit life insurance using funds other than the proceeds of a loan obtained from the licensee, or have the cost of the noncredit life insurance deducted from the proceeds of any loan obtained from the licensee.
The limitations on the amount of insurance contained in subsection (1) shall not apply to insurance sold under this subsection (2).
(3) Whenever he shall find it necessary, the commissioner shall have the power to adopt and enforce reasonable rules and regulations to prevent the abuse of this section and the making of excessive charges * * * under this section.
SECTION 2. This act shall take effect and be in force from and after July 1, 1997.