MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Insurance

By: Senator(s) Kirby

AN ACT TO AMEND SECTION 83-3-121, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT ANY DULY LICENSED INSURANCE AGENT MAY ADVANCE AN INSURANCE PREMIUM TO THE INSURED WITH OR WITHOUT INTEREST THEREON AFTER THE INSURANCE HAS BEEN AFFECTED; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 83-3-121, Mississippi Code of 1972, is amended as follows:

83-3-121. No insurance company, or employee thereof, and no broker or agent shall knowingly charge, demand, or receive a premium for any policy of insurance except in accordance with the applicable filing approved in the manner herein provided. No such insurer or employee or agent thereof shall pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, as an inducement to insurance or after insurance has been affected, any rebate, discount, abatement, credit, or reduction of the premium named in a policy of insurance, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement whatever, not specified in the policy of insurance. No insured named in a policy of insurance nor any employee of such insured shall knowingly receive or accept, directly or indirectly, any such rebate, discount, abatement, or reduction of premium, or any special favor or advantage or valuable consideration or inducement. Nothing herein contained shall be construed as prohibiting the payment of commissions or other compensation to duly licensed agents; nor as prohibiting any participating insurer from distributing to its policyholders dividends, savings, or the unused or unabsorbed portion of premiums or premium deposits; nor as prohibiting any duly licensed agent from advancing an insurance premium to the insured with or without interest thereon after the insurance has been affected.

SECTION 2. This act shall take effect and be in force from and after its passage.