1997 Regular Session
By: Senator(s) Hall
Senate Bill 2475
AN ACT TO PROVIDE THAT ALL POLICIES OF LIFE INSURANCE ISSUED OR DELIVERED IN THIS STATE SHALL BE SETTLED WITHIN A CERTAIN TIME; TO REQUIRE INTEREST TO BE PAID IF INSURER FAILS TO SETTLE THE CLAIM WITHIN THE PRESCRIBED TIME PERIOD; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. All death claims arising under policies of life insurance issued or delivered within this state shall be settled within thirty (30) days of receipt of a certified death certificate or within ninety (90) days if the policy is within its contestable period. If the insurer fails to settle the claim within these stated time periods, the amount due shall bear interest at the rate of eighteen percent (18%) per annum or the current rate paid by the insurer on deposits, if higher. This interest is payable from the date of death until the claim is settled. Upon the death of an insured, the proceeds payable to the beneficiary under any policy of individual life insurance delivered or issued for delivery in this state, which is in force on a premium-paying basis on the date of death, shall include premiums paid for any period beyond the end of the policy month in which death occurred, unless the refund of premiums is due some other person pursuant to contract provisions.
SECTION 2. This act shall take effect and be in force from and after July 1, 1997.