Senate Bill NO. 2046

By Representative(s) Committee

SECTION 1. Section 83-21-19, Mississippi Code of 1972, is amended as follows:

83-21-19. The Commissioner of Insurance, upon the annual payment of a fee of Fifty Dollars ($50.00), may issue to a licensed resident or nonresident agent, based on a reciprocal agreement with the state of the nonresident agent, who is regularly commissioned to represent two (2) or more fire, marine, casualty or surety insurance companies licensed to do business in the state, a privilege license to place kinds of direct insurance affected hereby, to be evidenced by policies of insurance or certificates of insurance, in eligible nonadmitted insurers authorized to do business in this state. Every insurance contract procured and delivered pursuant to Sections 83-21-17 through 83-21-31 shall have stamped upon it, in bold ten-point type, and * * * bear the name of the agent who procured it, the following: "NOTE: This insurance policy is issued in accordance with Mississippi law covering surplus lines insurance. The company issuing the policy is not licensed by the State of Mississippi but is authorized to do business in Mississippi as a nonadmitted company. The policy is not protected by the Mississippi Insurance Guaranty Association if the insurer becomes insolvent." No diminution of the license fee herein provided shall occur as to any license effective after January 1 of any year. The Commissioner of Insurance may require written application for such license.

SECTION 2. Section 83-21-23, Mississippi Code of 1972, is amended as follows:

83-21-23. When any policy of insurance or certificate of insurance is procured under the authority of such license, there shall be executed by the agent * * * an affidavit setting forth facts in complete detail as to what was done to place such kind of insurance and showing that such agent therein was unable, after diligent effort, to procure from any licensed company or companies the full amount of insurance required to protect the property, liability, or risk desired to be insured, and further showing that the amount of insurance procured from the eligible nonadmitted insurer or insurers is only the excess over the amount so procurable from licensed companies. Each such affidavit, which shall be effective for the term of the policy, shall be filed with the Commissioner of Insurance along with the report required in Section 83-21-25.

The Commissioner of Insurance may promulgate rules and regulations and establish appropriate fees for the implementation of Sections 83-21-17 through 83-21-31. The Commissioner of Insurance may impose penalties for an agent's noncompliance with any of the provisions herein, or the rules and regulations promulgated hereunder, including civil penalties of an amount not to exceed Five Thousand Dollars ($5,000.00) or revocation of the agent's license, or both.

SECTION 3. This act shall take effect and be in force from and after July 1, 2000.

AN ACT TO AMEND SECTION 83-21-19, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN NONRESIDENT INSURANCE AGENTS MAY OBTAIN PRIVILEGE LICENSES FOR PLACING SURPLUS LINES INSURANCE IF THERE IS A RECIPROCAL AGREEMENT WITH THE NONRESIDENT AGENT'S STATE THAT ALLOWS MISSISSIPPI AGENTS TO PLACE SURPLUS LINES INSURANCE IN THAT STATE; TO CLARIFY AND BROADEN THE DISCLOSURE LANGUAGE REQUIRED TO APPEAR ON SURPLUS LINES POLICIES; TO AMEND SECTION 83-21-23, MISSISSIPPI CODE OF 1972, TO ELIMINATE THE REQUIREMENT THAT THE INSURED EXECUTE CERTAIN AFFIDAVITS FOR SURPLUS LINES INSURANCE; TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO IMPOSE PENALTIES FOR AN AGENT'S NONCOMPLIANCE; AND FOR RELATED PURPOSES.