Senate Bill 2224

AN ACT TO PROVIDE FULL DISCHARGE OF AN INSURER FROM ALL CLAIMS UNDER A LIFE INSURANCE POLICY OR ANNUITY CONTRACT WHEN THE PROCEEDS UNDER THE POLICY OR CONTRACT BECOME PAYABLE AND THE INSURER MAKES PAYMENTS IN ACCORDANCE WITH THE TERMS OF THE POLICY OR CONTRACT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) An insurer shall be fully discharged from all claims under a life insurance policy or annuity contract:

(a) When the proceeds of or payments under a life insurance policy or contract become payable in accordance with (i) the terms of the policy or contract, or (ii) the exercise of any right or privilege under the contract; and

(b) If the insurer makes payments in accordance with the terms of the life insurance policy or annuity contract or any written assignment to the person designated in the policy or contract or by assignment as being entitled to the proceeds or payments.

(2) An insurer may not be fully discharged from all claims under a life insurance policy or annuity contract before payment is made and if the insurer has received, at its home office, written notice that some other person claims to be entitled to payment or some interest in the policy or contract.

SECTION 2. This act shall take effect and be in force from and after July 1, 2005.