2006 Regular Session
By: Representative Formby
AN ACT TO AMEND SECTION 83-17-5, MISSISSIPPI CODE OF 1972, TO DELETE THE WORD "CONTINUOUS" IN REGARD TO INSURANCE AGENT CERTIFICATES; TO AMEND SECTION 83-17-75, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT AN INSURANCE PRODUCER WHO IS NOT ACTING AS AN AGENT OF AN INSURER IS NOT REQUIRED TO BECOME APPOINTED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-17-5, Mississippi Code of 1972, is amended as follows:
83-17-5. Every agent of any insurance company, fraternal order or association authorized to do business in this state shall be required to obtain from the Commissioner of Insurance a * * * certificate under the seal of his office showing that the company for which he or she is licensed to do business in this state, and that he or she is an agent of said company and duly authorized to do business for it. Such certificate shall remain valid as long as the insurance company, fraternal order or association pays to the commissioner an annual certificate fee to continue the authorization. The insurance company, fraternal order or association must notify the agent within thirty (30) days if the authority is nonrenewed or cancelled.
SECTION 2. Section 83-17-75, Mississippi Code of 1972, is amended as follows:
83-17-75. (1) An insurance producer shall not act as an agent of an insurer unless the insurance producer becomes an appointed agent of that insurer. An insurance producer who is not acting as an agent of an insurer is not required to become appointed.
(2) To appoint a producer as its agent, the appointing insurer shall file, in a format approved by the commissioner, a notice of appointment within fifteen (15) days from the date the agency contract is executed or the first insurance application is submitted. An insurer may also elect to appoint a producer to all or some insurers within the insurer's holding company system or group by the filing of a single appointment request.
(3) Upon receipt of the notice of appointment, the commissioner shall verify within a reasonable time not to exceed thirty (30) days that the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the commissioner shall notify the insurer within five (5) days of its determination.
(4) An insurer shall pay an appointment fee, in the amount and method of payment set forth in Section 83-5-73 for each insurance producer appointed by the insurer.
(5) An insurer shall remit, in a manner prescribed by the commissioner, a renewal appointment fee in the amount set forth in Section 83-5-73.
(6) Before the issuance of a license or certificate of authority, the commissioner shall require the company requesting appointment of the applicant as producer for the first time to furnish a certificate to the commissioner, verified by an executive officer or managing general or special agent of such company, that the company has duly investigated the character and record of such person and has satisfied itself that such person is of good moral character and is qualified, fit and trustworthy to act as its producer. The Commissioner of Insurance may at any time require any company to obtain a credit report on a producer if the commissioner deems such request advisable. Should such credit report reflect information regarding an offense or violation in relation to which the Department of Insurance has taken action, such information shall not render the applicant ineligible for a license if applicant has complied with the order of the commissioner regarding such offense.
SECTION 3. This act shall take effect and be in force from and after July 1, 2006.