House Bill 643

AN ACT TO PROVIDE THAT NO ACCIDENT OR HEALTH INSURANCE POLICY SHALL BE ISSUED UNTIL THE FORM AND RATES ARE FILED WITH THE COMMISSIONER OF INSURANCE FOR APPROVAL; TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO DISAPPROVE THE FORM IF THE RATES ARE UNREASONABLE; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) No policy of insurance against loss or expense from sickness or from the bodily injury or death by accident of the insured shall be issued or delivered to any person in this state nor shall any application, rider or endorsement be used in connection therewith until a copy of the form and of the classification of risks and the premium rates or, in the case of cooperatives or assessment companies, the estimated cost pertaining thereto have been filed with the Commissioner of Insurance.

(2) No policy shall be issued, nor shall any application, rider or endorsement be used in connection therewith, until the expiration of thirty (30) days after it has been so filed, unless the commissioner shall sooner give written approval.

(3) The commissioner may, within thirty (30) days after the filing of a form, disapprove the form if the benefits provided are unreasonable in relation to the premium charged, or if it contains a provision or provisions which are unjust, unfair, inequitable, misleading, deceptive or encourage misrepresentation of the policy. If the commissioner notifies the insurer that has filed any such form that it does not comply with the provisions of this section, it shall be unlawful for the insurer to issue the form or use it in connection with a policy. In the notice the commissioner shall specify the reasons for disapproval and state that a hearing shall be granted within twenty (20) days after request in writing by the insurer.

(4) The commissioner may at any time, after a hearing of which not less than twenty (20) days' written notice shall have been given to the insurer, withdraw approval of a form on any of the grounds stated in this section. It shall be unlawful for the insurer to issue the form or use it in connection with a policy after the effective date of withdrawal of approval. The notice of a hearing called under this subsection shall specify the matters to be considered at the hearing and any decision affirming disapproval or directing withdrawal of approval under this section shall be in writing and shall specify the reasons therefor.

(5) An order or decision of the commissioner under this section shall be subject to review by appeal to the Circuit Court of the First Judicial District of Hinds County, Mississippi, at the instance of any party in interest. In the case of disapproval or withdrawal of approval of a form previously in use, the court shall determine whether the filing of the appeal shall operate as a stay of any such order or decision. The court may in disposing of the issue before it, modify, affirm or reverse the order or decision of the commissioner in whole or in part.

SECTION 2. This act shall take effect and be in force from and after July 1, 2004.