MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Insurance
By: Representative Franks
AN ACT TO AMEND SECTION 83-17-73, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY PERSON SELLING INSURANCE IN THIS STATE SHALL DISCLOSE THE AMOUNT OF HIS COMMISSION TO THE PURCHASER AT OR BEFORE THE TIME OF SALE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-17-73, Mississippi Code of 1972, is amended as follows:
83-17-73. (1) An insurance company or insurance producer shall not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this article and is not so licensed. An insurance company or insurance producer shall not pay a commission or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state unless that person disclosed to the purchaser at or before the time of sale the amount of the commission or other valuable consideration he will receive from the sale.
(2) A person shall not accept a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this article and is not so licensed. A person shall not accept a commission or other valuable consideration for selling, soliciting or negotiating insurance in this state unless such person discloses to the purchaser at or before the time of sale the amount of the commission or other valuable consideration he will receive from the sale.
(3) Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this state if the person was required to be licensed under this article at the time of the sale, solicitation or negotiation and was so licensed at that time.
(4) An insurer or insurance producer may pay or assign commissions, service fees, brokerages or other valuable consideration to an insurance agency or to persons who do not sell, solicit or negotiate insurance in this state, unless the payment would violate Section 83-17-7 or any other applicable provision of Title 83, Mississippi Code of 1972.
SECTION 2. This act shall take effect and be in force from and after July 1, 2007.