MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Insurance

By: Senator(s) Kirby

AN ACT TO AMEND SECTION 27-15-83, MISSISSIPPI CODE OF 1972, TO INCREASE THE PRIVILEGE TAXES FOR INSURANCE COMPANIES LICENSED AS FRATERNAL SOCIETIES; TO AMEND SECTIONS 83-29-27 AND 83-29-29, MISSISSIPPI CODE OF 1972, TO CHANGE THE LICENSE RENEWAL DATE FOR INSURANCE COMPANIES LICENSED AS FRATERNAL SOCIETIES; TO AMEND SECTION 83-5-61, MISSISSIPPI CODE OF 1972, TO INCREASE THE FILING FEE FOR THE DIRECT PLACEMENT OF PROPERTY INSURANCE; TO CREATE A NEW CODE SECTION TO REQUIRE AN ANNUAL FEE TO BE PAID TO THE COMMISSIONER OF INSURANCE FOR THE REGISTRATION OF RISK RETENTION GROUPS AND RISK PURCHASING GROUPS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-15-83, Mississippi Code of 1972, is amended as follows:

27-15-83. (1) Upon each foreign insurance company licensed as a single line company defined under Section 83-19-1, the privilege tax is as follows:

(a) Fire and Allied Lines and/or

Industrial Fire $200.00

(b) Casualty/Liability $200.00

(c) Fidelity and/or Surety $200.00

(d) Workers' Compensation $200.00

(e) Boiler and Machinery $200.00

(f) Plate Glass $200.00

(g) Aircraft $200.00

(h) Inland Marine and/or Ocean Marine $200.00

(i) Automobile Physical Damage/Automobile

Liability $200.00

(j) Homeowners/Farmowners $200.00

(k) Guaranty/Mortgage Guaranty $200.00

(l) Trip Accident and Baggage $200.00

(m) Legal $200.00

(n) Life and/or Accident and Health;

Credit Life, Accident and Health;

Industrial Life, Accident and Health;

and Variable Contracts $200.00

(o) Title $200.00

(p) Fraternal $100.00

(2) For any combination of classifications of a foreign insurance company, the privilege tax for a multiple line company shall be Three Hundred Fifty Dollars ($350.00).

(3) Any stock, mutual, reciprocal or reinsurance company shall pay the appropriate privilege tax for each line of insurance the company is licensed to underwrite.

(4) For each domestic insurance which has its home office located in Mississippi, the privilege tax shall be one-half (1/2) of the fees listed in this section.

(5) Each insurance company or association which amends its privilege license shall pay a fee of Twenty-five Dollars ($25.00).

SECTION 2. Section 83-29-27, Mississippi Code of 1972, is amended as follows:

83-29-27. Societies which are now authorized to transact business in this state may continue such business until the first day of January next succeeding the adoption of this chapter, and the authority of such societies may hereafter be renewed annually, but in all cases to terminate on the first day of the succeeding January; provided, however, the license shall continue in full force and effect until the new license be issued or specifically refused. For each such license or renewal the society shall pay the Commissioner of Insurance * * *, as provided in Section 27-15-83. * * *

SECTION 3. Section 83-29-29, Mississippi Code of 1972, is amended as follows:

83-29-29. No foreign society not now authorized to transact business in this state shall transact any business herein without a license from the Commissioner of Insurance. Any such society shall be entitled to transact business within this state upon filing with the commissioner a duly certified copy of its charter or articles of association; a copy of its Constitution and laws, certified by its secretary or corresponding officer; a power of attorney to the commissioner as hereinafter provided; the last annual statement of its business, under oath of its president and secretary or corresponding officers, in the form required by the commissioner, duly verified by an examination made by the supervising insurance official of its home state or other state satisfactory to the Commissioner of Insurance of this state; a certificate from the proper official in its home state, province, or country that the society is legally organized; a copy of its insurance contracts, which must show that benefits are provided for by periodical or other payments by persons holding similar contracts; and upon furnishing the commissioner such other information as he may deem necessary to a proper exhibit of its business and plan of working, and upon showing that its assets are invested in accordance with the laws of the states, territory, district, province, or country where it is organized, he shall issue a license to such society to do business in this state until the first day of the succeeding January. Such license shall, upon compliance with the provisions of this chapter, be renewed annually, but in all cases to terminate on the first day of the succeeding January; provided, however, that license shall continue in full force and effect until the new license be issued or specifically refused. Any foreign society desiring admission to this state shall have the qualifications required of domestic societies organized under this chapter, upon a valuation by any one of the standards authorized in this chapter, and shall at the same time possess net cash assets of not less than One Hundred Thousand Dollars ($100,000.00), or net cash assets of not less than Fifty Thousand Dollars ($50,000.00) with also invested assets of not less than One Hundred Thousand Dollars ($100,000.00), and in each case with additional contingent assets of not less than Three Hundred Thousand Dollars ($300,000.00); and shall have its assets invested as required by the laws of the state, territory, district, country, or province where it is organized. * * * When the commissioner refuses to license any society, or revokes its authority to do business in this state, he shall reduce his ruling, order, or decision to writing and file the same in his office, and shall furnish a copy thereof, together with a statement of his reason, to the officers of the society, upon request. Nothing contained in this, or the preceding section, or in this chapter, shall be taken or construed as preventing any such society from continuing in good faith all contracts made in this state during the time such society was legally authorized to transact business therein, and such society shall have full right and authority to continue to collect payments from its members, to carry out its contracts, and to perform all the usual functions of said society except that of acquiring and admitting new members in this state after it has either been refused a renewal of its license herein or has voluntarily relinquished said license. Such activities on its part shall not be construed as doing business in said state so as to subject it to any fee, demand, or charge whatsoever from the insurance department or other agency of this state.

SECTION 4. Section 83-5-61, Mississippi Code of 1972, is amended as follows:

83-5-61. All corporations, firms, persons, or individuals obtaining insurance on property situated in this state owned by corporations, firms, or individuals resident therein, against fire, lightning, or tornado from companies, associations, firms, or corporations not authorized to transact business in this state, shall file with the Commissioner of Insurance a sworn statement or declaration, setting forth the name of the company, number of policy, amount of insurance rate, premium, and description, shall be required to pay to the Commissioner of Insurance a tax thereon of three percent (3%) of the premiums paid on said policies, and shall further pay to said commissioner a fee of Twenty Dollars ($20.00) on each policy for filing a record of the said statement or declaration, which record shall be kept for the private information of the Department of Insurance and shall not be a public record.

SECTION 5. (1) Upon an initial filing of an application for registration to operate as a risk retention group in the State of Mississippi, the risk retention group shall pay to the Commissioner of Insurance a fee in the amount of Five Hundred Dollars ($500.00).

(2) Upon filing for an annual registration renewal to operate as a risk retention group in the State of Mississippi, the risk retention group shall pay to the Commissioner of Insurance an annual fee in the amount of Five Hundred Dollars ($500.00) on or before June 1 of each year.

(3) Upon an initial filing of an application for registration to operate as a risk purchasing group in the State of Mississippi, the risk purchasing group shall pay to the Commissioner of Insurance a fee in the amount of Two Hundred Fifty Dollars ($250.00).

(4) Upon filing for an annual registration renewal to operate as a risk purchasing group in the State of Mississippi, the risk purchasing group shall pay to the Commissioner of Insurance an annual fee of Two Hundred Fifty Dollars ($250.00) on or before June 1 of each year.

(5) If any risk retention group or risk purchasing group that wishes to continue to do business in the State of Mississippi fails to file the required renewal fee, the Commissioner of Insurance shall revoke any registration or license held by the entity.

(6) Each risk retention group or risk purchasing group operating in the State of Mississippi shall file with the Department of Insurance on or before March 1 of each year a listing of the premiums written on risks in Mississippi.

SECTION 6. This act shall take effect and be in force from and after July 1, 1999.