2006 Regular Session
To: Business and Financial Institutions
By: Senator(s) Mettetal
AN ACT TO AMEND SECTION 81-21-21, MISSISSIPPI CODE OF 1972, TO CLARIFY UNDER THE INSURANCE PREMIUM FINANCE LAW THAT THE REFUND OF UNEARNED PREMIUMS SHALL BE PAID DIRECTLY TO THE PREMIUM FINANCE COMPANY AS SOON AS REASONABLY POSSIBLE; TO AMEND SECTION 75-15-25, MISSISSIPPI CODE OF 1972, TO REVISE THE DEADLINE BY WHICH A LICENSEE UNDER THE SALE OF CHECKS LAW MUST REPORT HIS OUTSTANDING CHECKS TO THE COMMISSIONER OF BANKING AND CONSUMER FINANCE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 81-21-21, Mississippi Code of 1972, is amended as follows:
81-21-21. (1) Whenever a financed insurance contract is cancelled, the insurer shall return to the premium finance company as soon as reasonably possible whatever gross unearned premiums are due under the insurance contract * * *.
(2) In the event that a premium is subject to an audit to determine the final premium amount, the gross unearned premium shall be calculated upon the deposit premium and the insurer shall return whatever gross unearned premiums are due based upon that deposit to the finance company for the account of the insured.
(3) In the event that the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund such excess to the insured, provided that no such refund shall be required if it amounts to less than Three Dollars ($3.00).
SECTION 2. Section 75-15-25, Mississippi Code of 1972, is amended as follows:
75-15-25. Whenever the bond or securities deposit required under Section 75-15-11 of this chapter is less than Two Hundred Fifty Thousand Dollars ($250,000.00), the licensee may not at any time have outstanding checks, issued in his business of selling checks as a service or for a fee or other consideration, in excess of the bond or securities deposit required of him under Section 75-15-11 of this chapter, and such licensee shall, pursuant to rules and regulations promulgated by the commissioner under this chapter, submit a written report * * * to the commissioner on the last business day of each month regarding his checks outstanding, whether issued by himself or through agents, * * * provided that this limitation shall be the principal sum of the bond or the market value of the securities deposit required of the licensee under Section 75-15-11 of this chapter and the sum of this limitation shall not be increased by any bond or securities deposit increase required by the commissioner under Section 75-15-29 of this chapter or by deposit of any revocation order, suspension bond, or securities deposit under Section 75-15-27 of this chapter.
SECTION 3. This act shall take effect and be in force from and after its passage.