Senate Bill 2224

(As Passed the Senate)

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) To ensure that contractual claims under a policy or contract are not paid by the insurer more than once, an insurer shall be fully discharged from all contractual claims under a life insurance policy or annuity contract:

(a) When the proceeds or payments under a life insurance policy or annuity 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 shall not be fully discharged from all contractual 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; nor shall an insurer be fully discharged from all contractual claims under a life insurance policy or annuity contract if the person who receives the proceeds or payment does not accept the proceeds or payment and returns the same to the insurer at its home office.

(3) An insurer shall not be fully discharged from all contractual claims under a life insurance policy if the insurer has not complied with Section 83-7-6.

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