2002 Regular Session
By: Representative Stevens, Chism, Masterson, Montgomery (74th)
AN ACT TO AMEND SECTION 83-19-69, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT DOMESTIC INSURERS ARE PROHIBITED FROM ENTERING INTO CERTAIN CONTRACTS IN ANOTHER STATE OR JURISDICTION, UNLESS SUCH INSURERS ARE AUTHORIZED PURSUANT TO THE LAWS OF THE OTHER STATE OR JURISDICTION TO DO BUSINESS THEREIN; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-19-69, Mississippi Code of 1972, is amended as follows:
83-19-69. Subject to the exceptions set forth herein, no domestic insurer shall enter into a contract of insurance upon the life or person of a resident of any other state or jurisdiction, or covering property or risks located in any other state or jurisdiction, unless such insurer is authorized pursuant to the laws of the other state or jurisdiction to do business therein.
The following constitute the exceptions to the foregoing provisions of this section:
(a) Life insurance contracts entered into where the prospective insurant is personally present in a state or jurisdiction in which the insurer is authorized to do business when he signs the application.
(b) Issuance of certificates under any lawfully transacted group life, group accident, group health, or other group disability policy, where the master policy is entered into in a state or jurisdiction in which the insurer is authorized to do business.
(c) Contracts made pursuant to a pension or retirement plan of an employer, when such contracts are applied for in a state or jurisdiction where the employer is personally present or doing business and the insurer is authorized to do business.
(d) The renewal, reinstatement, conversion or continuance in force with or without modification of contracts otherwise lawfully entered into and which were not originally executed in violation of this section, where the terms of such policy as originally executed leave no option as to renewal, reinstatement, or continuance in force to the insurer, but vest such rights in the insured alone.
(e) Reinsurance contracts entered into upon request from companies in other states or jurisdictions covering risks in other states or jurisdictions, provided such companies requesting reinsurance are licensed in the states or jurisdictions in which the risks are located.
Any company willfully violating this section shall be subject to suspension of its license to do business in this state for a period of not more than one (1) year, after ten (10) days' notice in writing and hearing by the Commissioner of Insurance.
SECTION 2. This act shall take effect and be in force from and after July 1, 2002.