Senate Bill 2809

(As Sent to Governor)

AN ACT TO REQUIRE AN INSURER PAYING A CLAIM FOR CERTAIN DAMAGES UNDER A POLICY OF AUTOMOBILE INSURANCE TO ADD AS A PAYEE ON THE CHECK, IN ADDITION TO THE NAME OF THE INSURED, THE NAME OF THE BUSINESS REPAIRING THE AUTOMOBILE OR THE NAME OF THE LIEN HOLDER; AND FOR RELATED PURPOSES.

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

SECTION 1. When there are one or more lien holders shown in the policy or confirmed in writing by the insured before the loss, 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 add as a payee on the check, in addition to the name of the insured, the name of the business or other entity repairing the automobile or the name of the lien holder or lien holders. When payment is made to a lien holder, the lien holder shall pay any balance owed to the debtor within sixty (60) days after receipt of the check. However, in the case of a total loss, the insurer may issue separate checks to the lien holder and to the insured for the amount of each party's financial interest in the vehicle. This section shall not apply to the repair or replacement of glass in the vehicle.

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.