MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Insurance

By: Representative Stevens

House Bill 380

AN ACT TO AMEND SECTION 83-37-11, MISSISSIPPI CODE OF 1972, TO ELIMINATE THE USE OF CASH AS A MEANS OF MAKING A SECURITY DEPOSIT TO ENGAGE IN THE BUSINESS OF A BURIAL ASSOCIATION; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 83-37-11, Mississippi Code of 1972, is amended as follows:

83-37-11. Before engaging in said business, any such person, firm, association, or corporation, both foreign and domestic, shall deposit with the Treasurer of the State of Mississippi such securities as may be approved by the Commissioner of Insurance, consisting of * * * certificates of deposit or bonds of the United States, of the State of Mississippi, or of any county, municipality, levee district, or road district in this state. The securities so deposited shall be not less than par value of Five Hundred Dollars ($500.00) for each One Hundred Twenty-five Thousand Dollars ($125,000.00), or fraction thereof, of face value and in-force certificates.

Any such person, firm, association, or corporation organized under this section may issue contracts or burial certificates in amounts not to exceed One Hundred Fifty Dollars ($150.00), provided said person, firm, association, or corporation deposits securities with the Treasurer of the State of Mississippi according to the schedule set out heretofore, with a minimum deposit of not less than One Thousand Dollars ($1,000.00) par value. Said person, firm, association, or corporation organized under this section may also issue contracts or burial certificates in amounts not to exceed Three Hundred Dollars ($300.00), provided said person, firm, association, or corporation deposits securities with the Treasurer of the State of Mississippi according to the schedule set out heretofore, with a minimum deposit of not less than Two Thousand Dollars ($2,000.00) par value. Said person, firm, association, or corporation organized under this section may also issue contracts or burial certificates in amounts not to exceed Four Hundred Fifty Dollars ($450.00), provided said person, firm, association, or corporation deposits securities with the Treasurer of the State of Mississippi according to the schedule set out heretofore, with a minimum deposit of not less than Three Thousand Dollars ($3,000.00) par value.

Any such person, firm, association, or corporation who prior hereto had on deposit with the Treasurer of the State of Mississippi the maximum amount of securities heretofore required shall not be required to deposit additional securities except on the net increase in liability of in-force certificates issued after January 1, 1974.

No individual benefit shall exceed the sum of Four Hundred Fifty Dollars ($450.00) unless said benefit in excess of Four Hundred Fifty Dollars ($450.00) is written on a schedule of rates approved by the State Commissioner of Insurance, and unless said contract specifically stipulates that anyone insured thereunder may receive in cash at his or her option the face value thereof; and with the further provision that any and all burial certificates in excess of Four Hundred Fifty Dollars ($450.00) shall come under and be subject to all the qualifications and all provisions of law governing life insurance contracts and policies in the State of Mississippi.

All contracts issued by a person, firm, association, or corporation of any of the above classifications will be issued in amounts of One Hundred Fifty Dollars ($150.00), Three Hundred Dollars ($300.00), or Four Hundred Fifty Dollars ($450.00) only. The provisions of this subsection shall not apply to funeral benefit certificates already in force in excess of Four Hundred Fifty Dollars ($450.00). No person, firm, association, or corporation shall write or issue a paid-up certificate.

A surety bond made by some company authorized to do business in Mississippi for an amount equal to twice the amount of securities required above may be filed with the Treasurer, after approval by the Insurance Department, in lieu of the other securities above referred to.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.