Senate Bill 2797

AN ACT TO AMEND SECTION 83-5-3, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT INSURANCE COMPANIES ARE SUBJECT TO THE MISSISSIPPI ANTI-TRUST LAWS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 83-5-3, Mississippi Code of 1972, is amended as follows:

83-5-3. (1) (a) Every insurance company, foreign or domestic, that qualifies to do business in the State of Mississippi shall be required to execute an agreement to be bound by the statute laws of the State of Mississippi pertaining to the periods of limitation prescribed by the statute law of this state.

(b) The business of insurance shall be subject to the laws of Mississippi applicable to any other business, including, but not limited to, Title 75, Chapter 21, entitled Trusts and Combines in Restraint or Hindrance of Trade.

(i) Any agreement to collect, compile and disseminate historical data on paid claims or reserves for reported claims, provided such data is contemporaneously transmitted to the commissioner;

(ii) Participation in any joint arrangement established by statute or the commissioner to assure availability of insurance;

(iii) Any agent or broker, representing one or more insurers, from obtaining from any insurer it represents information relative to the premium for any policy or risk to be underwritten by that insurer;

(iv) Any agent or broker from disclosing to an insurer it represents any quoted rate or charge offered by another insurer represented by that agent or broker for the purpose of negotiating a lower rate, charge, or term from the insurer to whom the disclosure is made; or

(v) Any agents, brokers or insurers from utilizing or participating with multiple insurers or reinsurers

for underwriting a single risk or group of risks.

(2) The insurance commissioner is hereby required, as a condition precedent to authorizing any insurance company to qualify and operate under the laws of this state or to do business in this state, to require said companies to execute an agreement binding said company to conform to and to be bound and regulated by the statute laws of this jurisdiction as defined in the first paragraph.

(3) For purposes of the administration of this section, insurance companies shall consist of all types of insurance companies, both domestic and foreign, that operate in this jurisdiction, including stock companies, mutuals, and fraternal societies and organizations when such fraternal society or organization engages in the insuring of its members or other persons.

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