MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Insurance
By: Representative Turner
AN ACT TO AMEND SECTIONS 83-11-17 AND 83-11-19, MISSISSIPPI CODE OF 1972, TO REMOVE THE REQUIREMENT OF A FIFTEEN DOLLAR FILING FEE IN AUTOMOBILE CANCELLATION OR NONRENEWAL APPEALS; TO AMEND SECTION 83-17-71, MISSISSIPPI CODE OF 1972, TO EXTEND THE TIME FRAME FROM WHICH AN INSURANCE PRODUCER WHOSE LICENSE HAS BEEN REVOKED OR FORFEITED MAY REAPPLY FOR LICENSURE; TO AMEND SECTION 83-17-251, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM PRELICENSING REQUIREMENTS INDIVIDUALS SEEKING LICENSURE IN THE LIFE LINE OF AUTHORITY ONLY; TO AMEND SECTION 83-17-523, MISSISSIPPI CODE OF 1972, TO CLARIFY THE COMPENSATION OF A PUBLIC ADJUSTER; TO PROVIDE THAT A PUBLIC ADJUSTER SHALL NOT PARTICIPATE IN THE RECONSTRUCTION, REPAIR OR RESTORATION OF DAMAGED PROPERTY THAT IS THE SUBJECT OF A CLAIM ADJUSTED BY THE ADJUSTER; TO PROVIDE THAT A PUBLIC ADJUSTER SHALL NOT ENGAGE IN ANY ACTIVITIES THAT MAY BE REASONABLY CONSTRUED AS A CONFLICT OF INTEREST; TO PROVIDE THAT A PUBLIC ADJUSTER SHALL NOT HAVE A FINANCIAL INTEREST IN ANY SALVAGE, REPAIR OR ANY OTHER BUSINESS ENTITY THAT OBTAINS BUSINESS IN CONNECTION WITH ANY CLAIM THAT THE PUBLIC ADJUSTER HAS A CONTRACT TO ADJUST; TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO ADOPT RULES AND REGULATIONS TO ALLOW HIM, DURING A COMPANY EXAMINATION, TO EXAMINE AND ADDRESS ANY INEQUALITIES REGARDING PROVIDER REIMBURSEMENT RATES PAID BY AN INSURER, SUBCONTRACTOR, OTHER PAYOR OR BY THIRD-PARTY ADMINISTRATORS; TO PROVIDE THAT FAILURE TO COMPLY WITH RULES AND REGULATIONS ADOPTED BY THE COMMISSIONER MAY RESULT IN A FINE NOT TO EXCEED $10,000.00 PER VIOLATION; TO ADD A THREE-YEAR REPEALER TO THE SECTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-11-17, Mississippi Code of 1972, is amended as follows:
83-11-17. A named insured who wishes to contest
the reason or reasons for a cancellation of a policy which has been in effect for
sixty (60) days or more or failure by insurer to give proper notice of
nonrenewal as provided hereunder shall, not less than seven (7) working days
from the date of receipt of notice of cancellation or receipt of notice of
nonrenewal, mail or deliver to the Commissioner of Insurance a written request
for a hearing, which request shall state clearly the basis for the appeal * * *.
A cancellation or nonrenewal which is subject to the provisions of this article shall be deemed effective unless the Commissioner of Insurance determines otherwise in accordance with the provisions of this article.
SECTION 2. Section 83-11-19, Mississippi Code of 1972, is amended as follows:
83-11-19. Within two (2) working days after receipt of a timely request for a hearing, the commissioner or his officially appointed designee shall call a hearing upon at least seven (7) days' notice to the parties. Each insurer licensed to do in this state the kind of business which is subject to this article shall maintain on file with the commissioner the name and address of the person authorized to receive notices pursuant to this article on behalf of the insurer.
The commissioner or his
designated representative who conducted the hearing shall, at the conclusion thereof
or not later than two (2) days thereafter, issue his written findings to the
parties. If he finds for the named insured, he shall * * * either order the insurer to rescind
its notice of cancellation or, if the date cancellation is to be effective has
elapsed, order the policy reinstated or renewed. Such order shall operate
retroactively only to cover a period not to exceed twenty (20) days from the
date cancellation otherwise would have been effective, and prospectively from
the date on which the order was issued; provided, however, that no policy shall
be reinstated or renewed while the named insured is in arrears in payment of
premiums on such policy. If the commissioner or his representative finds for
the insurer, his written order shall so state * * *.
Reinstatement of a policy under this section shall not operate in any way to
extend the expiration, termination, or anniversary date provided in the
policy. Renewal of a policy shall be for a term of one (1) year from the expiration
date of the prior policy, and otherwise shall contain the same coverage, terms,
and contractual provisions contained in said prior policy.
SECTION 3. Section 83-17-71, Mississippi Code of 1972, is amended as follows:
83-17-71. (1) The commissioner may place on probation, suspend, revoke or refuse to issue or renew an insurance producer's license or may levy a civil penalty in an amount not to exceed One Thousand Dollars ($1,000.00) per violation and such penalty shall be deposited into the special fund of the State Treasury designated as the "Insurance Department Fund" for any one or more of the following causes:
(a) Providing incorrect, misleading, incomplete or materially untrue information in the license application;
(b) Violating any insurance laws, or violating any regulation, subpoena or order of the commissioner or of another state's commissioner;
(c) Obtaining or attempting to obtain a license through misrepresentation or fraud;
(d) Improperly withholding, misappropriating or converting any monies or properties received in the course of doing insurance business;
(e) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;
(f) Having been convicted of a felony;
(g) Having admitted or been found to have committed any insurance unfair trade practice or fraud;
(h) Using fraudulent, coercive or dishonest practices or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere;
(i) Having an insurance producer license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;
(j) Forging another's name to an application for insurance or to any document related to an insurance transaction;
(k) Improperly using notes or any other reference material to complete an examination for an insurance license;
(l) Knowingly accepting insurance business from an individual who is not licensed;
(m) Failing to comply with an administrative or court order imposing a child support obligation; or
(n) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.
(2) If the action by the commissioner is to nonrenew or to deny an application for a license, the commissioner shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the commissioner within ten (10) days for a hearing before the commissioner to determine the reasonableness of the commissioner's action. The hearing shall be held within thirty (30) days.
(3) The license of a business entity may be suspended, revoked or refused if the commissioner finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers or managers acting on behalf of the partnership or corporation and the violation was neither reported to the commissioner nor corrective action taken.
(4) In addition to, or in lieu of, any applicable denial, suspension or revocation of a license, a person may, after hearing, be subject to a civil fine not to exceed One Thousand Dollars ($1,000.00) per violation and such fine shall be deposited into the special fund in the State Treasury designated as the "Insurance Department Fund."
(5) The commissioner shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this article and Title 83, Mississippi Code of 1972, against any person who is under investigation for or charged with a violation of this article or Title 83, Mississippi Code of 1972, even if the person's license or registration has been surrendered or has lapsed by operation of law.
(6) No licensee whose
license has been revoked hereunder shall be entitled to file another application
for a license as a producer * * * at a minimum of one (1) year or
a maximum of five (5) years, as set by the commissioner, from the effective
date of such revocation or, if judicial review of such revocation is sought, * * *at a minimum of one (1) year or
a maximum of five (5) years, as set by the commissioner, from the date of
final court order or decree affirming such revocation. Such application, when
filed, may be refused by the commissioner unless the applicant shows good cause
why the revocation of his license shall not be deemed a bar to the issuance of a
new license.
(7) Notwithstanding any other provision of this article to the contrary, a person licensed in this state as a nonresident producer whose license is denied, suspended or revoked in his or her home state shall also have his or her nonresident license denied, suspended or revoked in this state without prior notice or hearing.
(8) From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.
(9) From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.
SECTION 4. Section 83-17-251, Mississippi Code of 1972, is amended as follows:
83-17-251. (1) Every individual seeking to be licensed as an insurance producer in the State of Mississippi, as a condition of issuance of an original license, must furnish the Commissioner of Insurance certification on a form prescribed by the commissioner that he or she has completed an approved prelicensing course of study for the line of insurance requested.
(2) The prelicensing course of study hours shall consist of twenty (20) hours of approved prelicensing education courses per line of authority. The Commissioner of Insurance shall determine the content requirements for each prelicensing course of study. The prelicensing educational requirements of this section shall not apply to:
(a) An individual that is exempt from taking the written examination as provided in Section 83-17-39(1) and Section 83-17-67.
(b) An individual who has received a bachelor's degree with major coursework in insurance from an accredited institution of higher learning.
(c) An individual holding a current and valid CEBS, CHFC, CIC, CFP, CLU, FLMI, LUTCF designation is exempt for the life line of authority.
(d) An individual holding a current and valid RHU, CEBS, REBC, HIA designation is exempt for the accident and health or sickness line of authority.
(e) An individual holding a current and valid AAI, ARM, CIC, CPCU designation is exempt for the property and casualty lines of authority.
(f) Limited lines insurance producer and limited lines credit insurance producer as defined in Section 83-17-53.
(g) An individual that is seeking licensure for the variable life and variable annuity products line of authority only.
(h) An individual that is seeking licensure for the life line of authority only.
(3) Every individual seeking renewal of an insurance producer license, which has been in effect for a term of eighteen (18) months or less shall satisfactorily complete twelve (12) hours of study in approved continuing education courses. Every individual seeking renewal of an insurance producer license, which has been in effect for a term of more than eighteen (18) months shall satisfactorily complete twenty-four (24) hours of study in approved continuing education courses, of which three (3) hours shall have a course concentration in ethics.
(4) The continuing educational requirements of this section shall not apply to:
(a) Any individual that is exempt from taking the written examination as provided in Section 83-17-39(1)(b), (c), (e) and (g);
(b) Any limited lines producer or limited lines credit insurance producer;
(c) A person not a resident of this state who meets the continuing educational requirement in the state in which such person resides and Mississippi has a reciprocal agreement with that state;
(d) Nonactive agents as defined in Section 83-17-1; or
(e) Any individual who is sixty-five (65) years of age or older and who has been licensed as an insurance producer for a continuous period of twenty-five (25) years or more as of April 17, 2023, as evidenced by submission of an affidavit, under oath, on a form prescribed by the commissioner, signed by the licensee attesting to satisfaction of the age, licensing and experience requirements of this paragraph (e).
SECTION 5. Section 83-17-523, Mississippi Code of 1972, is amended as follows:
83-17-523. (1) Public adjusters shall ensure that all contracts for their services are in writing, signed by the insured and the public adjuster who solicited the contract, and a copy of the contract shall be provided to the insured upon execution. All such contracts shall be subject to the following provisions:
(a) No public adjuster shall charge, agree to, or accept as compensation any payment, commission, fee or other thing of value equal to more than ten percent (10%) of any insurance settlement or the proceeds of any claim investigated, exclusive of any settlement or agreed settlement made between the insured and the insurance company prior to the public adjuster and insured entering into a contract for services.
(b) No public adjuster shall require, demand or accept any fee, retainer, compensation, deposit or other thing of value, prior to partial or full settlement of a claim.
(c) Any costs to be reimbursed to a public adjuster out of the proceeds of a settlement shall be specified by kind and estimated amounts.
(d) A public adjuster's contract with the insured shall be revocable or cancelable by the insured without cause and without penalty or obligation for at least five (5) business days after the contract is executed by the insured. Nothing in this provision shall be construed to prevent an insured from pursuing any civil legal remedy to revoke or cancel the contract after the expiration of such cancellation period.
(e) No public adjuster may require that an insured authorize an insurer to issue a check only in the name of the public adjuster.
(2) Public adjusters shall adhere to the following ethical requirements:
(a) No public adjuster shall undertake the adjustment of any claim for which the public adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise.
(b) No public adjuster shall, as a public adjuster, represent any person or entity whose claim the public adjuster has previously adjusted while acting as an independent adjuster representing any insurer, either directly or through an independent adjusting firm retained by the insurer.
(c) A public adjuster shall not knowingly make any oral or written material misrepresentations or statements to any insured or potential insured which are false and intended to injure any person engaged in the business of insurance.
(d) No public adjuster shall knowingly enter into a contract to adjust a residential property claim subsequent to a declaration of total loss by an insurer, unless the services to be provided by the public adjuster can reasonably be expected to result in the insured obtaining an insurance settlement, net of the public adjuster's compensation, in excess of the amount the insured would have obtained without the services of the public adjuster.
(e) A public adjuster shall advise each insured that the insured has the right to retain an attorney at law of his choice throughout the public adjuster's investigation and adjustment of the claim.
(f) If the claim is not settled by the public adjuster, the public adjuster shall advise the insured that the insured has the right to retain an attorney at law of his choice.
(g) No public adjuster shall contract for, agree to, or receive anything of value from any attorney at law or other person acting in concert with any attorney at law (i) for referring claims to the attorney, or (ii) in connection with any claim for which the public adjuster has performed or intends to perform services.
(h) No public adjuster shall split any attorney's fee with any attorney at law.
(i) A public adjuster shall not testify as an expert witness in any judicial or administrative proceeding while maintaining a pecuniary interest in the outcome of the proceeding, as otherwise permitted by Section 83-17-523(1)(a); provided, however, that a public adjuster may testify as an expert witness if pursuant to the terms of his contract his compensation is converted to a specified hourly rate, which rate (i) is subject to such limitations as may be prescribed by the commissioner, and (ii) is not subject to any contingencies. In the event of a conversion of the public adjuster's contract to an hourly rate agreement, the prior fee arrangement shall be inadmissible at trial.
(j) A public adjuster shall not participate, directly or indirectly, in the reconstruction, repair or restoration of damaged property that is the subject of a claim adjusted by the adjuster.
(k) A public adjuster shall not engage in any activities that may be reasonably construed as a conflict of interest, including, directly or indirectly, soliciting or accepting any remuneration of any kind or nature.
(l) A public adjuster shall not have a financial interest in any salvage, repair, or any other business entity that obtains business in connection with any claim that the public adjuster has a contract to adjust.
SECTION 6. (1) The Commissioner of Insurance may adopt rules and regulations to allow him, during a company examination, to examine and address any inequalities or irregularities regarding provider reimbursement rates paid by an insurer, subcontractor, third-party administrator or other payor regarding covered services received by covered persons in this state. Such rules and regulations shall allow an insurer to show evidence as to why any inequality or irregularity may be justified. Failure to comply with rules and regulations adopted by the Commissioner under this section may result in a fine not to exceed Ten Thousand Dollars ($10,000.00) per violation.
(2) This section shall not apply to Medicaid health plans.
(3) This section shall stand repealed on July 1, 2027.
SECTION 7. This act shall take effect and be in force from and after July 1, 2024.