Senate Bill 2380

AN ACT TO PROVIDE THAT FOR ANY INSURANCE POLICY THAT FALLS WITHIN THE JURISDICTION OF THE STATE INSURANCE DEPARTMENT UNDER TITLE 83, MISSISSIPPI CODE OF 1972, WHEN AN INSURER CANCELS A POLICY FOR NONPAYMENT OF PREMIUMS BUT THE INSURER MAILED A NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUMS TO A DIFFERENT ADDRESS THAN THE ADDRESS SHOWN IN THE POLICY RESULTING IN THE NAMED INSURED FAILING TO RECEIVE PROPER NOTICE FROM THE INSURER, THE INSURED SHALL HAVE THE OPPORTUNITY TO PAY THE PAST-DUE PREMIUMS FOR THE POLICY; TO PROVIDE THAT IF THE INSURED PAYS THE PAST-DUE PREMIUMS ON THE POLICY, THE POLICY SHALL BE REINSTATED, AND THE ORIGINAL TERMS OF THE POLICY SHALL BE BINDING; TO AMEND SECTION 83-11-5, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THE ACT; TO BRING FORWARD SECTION 83-11-9, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) For any insurance policy that falls within the jurisdiction of the State Insurance Department under Title 83, Mississippi Code of 1972, no notice of cancellation of a policy shall be effective unless mailed or delivered by the insurer to the named insured and to any named creditor loss payee, as applicable, at least thirty (30) days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium at least ten (10) days' notice of cancellation accompanied by the reason therefor shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than fifteen (15) days prior to the effective date of cancellation, the insurer will specify the reason for such cancellation.

(2) When an insurer cancels a policy for nonpayment of premiums but the insurer mailed a notice of cancellation for nonpayment of premiums to a different address than the address shown in the policy resulting in the named insured failing to receive proper notice from the insurer, the insured shall have the opportunity to pay the past-due premiums for the policy. If the insured pays the past-due premiums on the policy, the policy shall be reinstated, and the original terms of the policy shall be binding.

SECTION 2. Section 83-11-5, Mississippi Code of 1972, is amended as follows:

[From July 1, 2025, until July 1, 2026, this section shall read as follows:]

83-11-5. No notice of cancellation of a policy to which Section 83-11-3 applies shall be effective to any coverage issued or renewed on or before June 30, 2026, unless mailed or delivered by the insurer to the named insured and to any named creditor loss payee at least thirty (30) days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium at least ten (10) days' notice of cancellation accompanied by the reason therefor shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than fifteen (15) days prior to the effective date of cancellation, the insurer will specify the reason for such cancellation.

This section shall not apply to nonrenewal unless there is a named creditor loss payee.

[From and after July 1, 2026, this section shall read as follows:]

83-11-5. (1) No notice of cancellation of a policy to which Section 83-11-3 applies shall be effective to any coverage issued or renewed on or after July 1, 2026, unless mailed or delivered by the insurer to the named insured and to any named creditor loss payee at least forty-five (45) days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium at least ten (10) days' notice of cancellation accompanied by the reason therefor shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than fifteen (15) days prior to the effective date of cancellation, the insurer will specify the reason for such cancellation.

If the insurer fails to meet the notice requirement of this section, the named insured has the option of continuing the policy or contract for the remainder of the notice period plus an additional forty-five (45) days at the premium rate of the existing policy or contract. Such option shall continue in forty-five-day increments until the insurer provides the notice required in this section.

SECTION 3. Section 83-11-9, Mississippi Code of 1972, is brought forward as follows:

83-11-9. Proof of mailing of notice of cancellation, or of intention not to renew, or of reasons for cancellation to the named insured by a certificate of mailing, at the address shown in the policy, shall be sufficient proof of notice.

SECTION 4. This act shall take effect and be in force from and after July 1, 2026.