MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Insurance

By: Senator(s) Hewes

Senate Bill 2744

AN ACT TO AMEND SECTION 83-11-3, MISSISSIPPI CODE OF 1972, TO REVISE THE GROUNDS ON WHICH INSURERS MAY CANCEL AUTOMOBILE INSURANCE POLICIES; TO PROVIDE THAT THE MODIFICATION OF AUTOMOBILE PHYSICAL DAMAGE COVERAGE BY THE INCLUSION OF A DEDUCTIBLE NOT EXCEEDING $500.00 SHALL NOT BE DEEMED A CANCELLATION OF THE COVERAGE OR OF THE POLICY; AND FOR RELATED PURPOSES. 

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

SECTION 1. Section 83-11-3, Mississippi Code of 1972, is amended as follows:

83-11-3. (1) A notice of cancellation of a policy shall be effective only if it is based on one or more of the following reasons:

(a) Nonpayment of premium;

(b) The driver's license or motor vehicle registration of the named insured, or of any other operator who either resides in the same household or customarily operates an automobile insured under the policy, has been under suspension or revocation during the policy period or, if the policy is a renewal, during its policy period or the one hundred eighty (180) days immediately preceding its effective date, unless within seven (7) days from the date of any such cancellation or suspension, the insured shall give insurer written notice of such revocation or suspension and shall direct the insurer to exclude from coverage under said policy the person whose license was so suspended or revoked; further use of the insured vehicle by an excluded driver shall be grounds for immediate cancellation of a policy; * * *

(c) Failure to make timely payment of dues to, or to maintain membership in good standing with, a designated association, corporation, or other organization where the original issue of such policy or renewal was dependent upon such membership;

(d) The insured has attempted or committed, or aided and abetted another, in any attempt to defraud any insurer or surety company;

(e) The insured made a false statement of a material fact in connection with an application for automobile insurance;

(f) The insured has been convicted or forfeited bail for any felony, criminal negligence or assault arising out of the operation of a motor vehicle; leaving the scene of an accident without stopping to report; operating a motor vehicle while intoxicated; or making a false statement in an application for a driver's license; or

(g) The insured has violated any of the terms and conditions of the insurance policy or the terms of his or her driver's license.

(2) This section shall not apply to any policy or coverage which has been in effect less than sixty (60) days at the time notice of cancellation is mailed or delivered by the insurer, unless it is a renewal policy.

(3) Modification of automobile physical damage coverage by the inclusion of a deductible not exceeding Five Hundred Dollars ($500.00) shall not be deemed a cancellation of the coverage or of the policy.

(4) This section shall not apply to nonrenewal.

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