Senate Bill 2809

(As Passed the Senate)

AN ACT TO REQUIRE AN INSURER PAYING A CLAIM FOR CERTAIN DAMAGES UNDER A POLICY OF AUTOMOBILE INSURANCE TO PLACE ON THE CHECK THE NAME OF ANY KNOWN LIENHOLDER OF THE AUTOMOBILE AS A LOSS PAYEE IN ADDITION TO THE NAME OF THE INSURED; AND FOR RELATED PURPOSES.

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

SECTION 1. An insurer paying a claim under automobile physical damage coverage or automobile collision coverage, as such terms are defined in Section 83-11-1, shall place on the check the name of any known lienholder of the automobile as a loss payee in addition to the name of the insured. An insurer shall reissue any check that does not comply with the provisions of this section.

SECTION 2. Section 1 of this act shall be codified within Chapter 11, Title 83 of the Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after July 1, 2007.