MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Insurance; Banking and Financial Services
By: Representatives Baria, Broomfield
AN ACT TO PROHIBIT ANY LIFE INSURANCE COMPANY FROM PAYING A BENEFICIARY OF A LIFE INSURANCE POLICY BY DEPOSITING THE PROCEEDS INTO A CHECKING ACCOUNT CONTROLLED BY THE INSURER, EVEN IF THE ACCOUNT IS IN THE BENEFICIARY'S NAME; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. It shall be unlawful for any life insurance company to pay a beneficiary of a life insurance policy by depositing the proceeds into a checking account controlled by the insurer, even if the account is in the beneficiary's name. Nothing in this section shall prevent an insurer from utilizing a direct deposit or wire transfer procedure to deposit proceeds into an account of a beneficiary that is not controlled by the insurer so long as the beneficiary makes such request.
SECTION 2. Section 1 shall be codified as a separate section within Chapter 7, Title 83, Mississippi Code of 1972.
SECTION 3. This act shall take effect and be in force from and after July 1, 2012.