MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Business and Financial Institutions

By: Senator(s) Nunnelee (By Request)

AN ACT TO AMEND SECTION 75-67-121, MISSISSIPPI CODE OF 1972, TO AUTHORIZE A LICENSEE UNDER THE SMALL LOAN REGULATORY LAW TO CHARGE CERTAIN BORROWERS THE COST OF PREMIUMS FOR NON-CREDIT LIFE INSURANCE POLICIES UNDER CERTAIN CONDITIONS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 75-67-121, Mississippi Code of 1972, is amended as follows:

75-67-121. (1) Any licensee hereunder may charge any borrower on loans of One Hundred Dollars ($100.00) or more the actual cost of recording any instrument executed as security for a loan; any reasonable fee paid to an attorney for investigating the title to any property given as security for a loan; the actual cost of any premium paid for insurance upon any property given as security for a loan, such insurance to be placed with an insurance company agent of the borrower's selection so long as it is licensed to do business in the State of Mississippi; the actual cost of any premium paid for credit or term life, health and/or accident insurance on any borrower where the amount of insurance required is not in excess of the amount of the loan and the premium therefor is in keeping with that usually and customarily paid for like insurance.

(2) Any licensee hereunder may charge any borrower on loans of One Hundred Dollars ($100.00) or more, the actual cost of any premium paid for any one or more non-credit life insurance policies, provided that such insurance is optional, is filed with the Department of Insurance, and is underwritten by an insurance company qualified to do business in the State of Mississippi. The limitations on the amount of insurance contained in subsection (1) shall not apply to insurance sold under this subsection (2).

(3) Whenever he shall find it necessary, the comptroller shall have the power to adopt and enforce reasonable rules and regulations to prevent the abuse of this section and the making of excessive charges hereunder.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.