reglab/statecodes huggingface dataset:
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-1 - Short title

This chapter shall be cited as the Insurers Rehabilitation and Liquidation Act.
Laws, 1991, ch. 417, § 1, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-3 - Declaration of purpose

The purpose of this chapter is the protection of the interests of insureds, claimants, creditors and the public generally; with minimum interference with the normal prerogatives of the owners and managers of insurers, through:
(a)
Early detection of any potentially dangerous condition in an insurer, and prompt application of appropriate corrective measures;
(b)
Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;
(c)
Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;
(d)
Equitable apportionment of any unavoidable loss;
(e)
Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process, and by extending the scope of personal jurisdiction over debtors of the insurer outside this state;
(f)
Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and
(g)
Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, insurance industry and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.
Laws, 1991, ch. 417, § 2, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-5 - Application of chapter

The proceedings authorized by this chapter may be applied to:
(a)
All insurers who are doing, or have done, an insurance business in this state, and against whom claims arising from that business may exist now or in the future.
(b)
All insurers who purport to do an insurance business in this state.
(c)
All insurers who have insureds residing in this state.
(d)
All other persons organized or in the process of organizing with the intent to do an insurance business in this state.
(e)
All nonprofit service plans and all fraternal benefit societies and beneficial societies.
(f)
All title insurance companies.
(g)
All prepaid health care delivery plans.
(h)
All corporate bodies organized for the purpose of carrying on the business of mutual insurance subject to the provisions of Section
83-31-1
et seq.
(i)
All health maintenance organizations established under Section
41-7-401
.
Laws, 1991, ch. 417, § 3; Laws, 1994, ch. 422, § 2; Laws, 1997, ch. 307, § 5, eff. 7/1/1997.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-9 - Commencement of delinquency proceedings; jurisdiction

(1)
No delinquency proceeding shall be commenced under this chapter by anyone other than the commissioner and no court shall have jurisdiction to entertain, hear or determine any proceeding commenced by any other person.
(2)
No court shall have jurisdiction to entertain, hear or determine any complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation or receivership of any insurer; or praying for an injunction or restraining order or other relief preliminary to, incidental to or relating to such proceedings other than in accordance with this chapter.
(3)
In addition to other grounds for jurisdiction provided by the law of this state, a court having jurisdiction of the subject matter has jurisdiction over a person served pursuant to the Mississippi Rules of Civil Procedure or other applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state:
(a)
If the person served is an agent, broker, or other person who has at any time written policies of insurance for or has acted in any manner whatsoever on behalf of an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer; or
(b)
If the person served is a reinsurer who has at any time entered into a contract of reinsurance with an insurer against which a delinquency proceeding has been instituted, or is an agent or broker of or for the reinsurer, in any action on or incident to the reinsurance contract; or
(c)
If the person served is or has been an officer, director, manager, trustee, organizer, promoter, or other person in a position of comparable authority or influence over an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer; or
(d)
If the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of the insurer, in any action concerning the assets; or
(e)
If the person served is obligated to the insurer in any way whatsoever, in any action on or incident to the obligation.
(4)
If the court on motion of any party finds that any action should as a matter of substantial justice be tried in a forum outside this state, the court may enter an appropriate order to stay further proceedings on the action in this state.
(5)
All action herein authorized shall be brought in the Chancery Court of the First Judicial District of Hinds County.
Laws, 1991, ch. 417, § 5, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-11 - Injunctions and orders; application

(1)
Any receiver appointed in a proceeding under this chapter may at any time apply for, and any court of general jurisdiction may grant, such restraining orders, preliminary and permanent injunctions, and other orders as may be deemed necessary and proper to prevent:
(a)
The transaction of further business;
(b)
The transfer of property;
(c)
Interference with the receiver or with a proceeding under this chapter;
(d)
Waste of the insurer's assets;
(e)
Dissipation and transfer of bank accounts;
(f)
The institution or further prosecution of any actions or proceedings;
(g)
The obtaining of preferences, judgments, attachments, garnishments or liens against the insurer, its assets or its policyholders;
(h)
The levying of execution against the insurer, its assets or its policyholders;
(i)
The making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer;
(j)
The withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or
(k)
Any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors or shareholders, or the administration of any proceeding under this chapter.
(2)
The receiver may apply to any court outside of the state for the relief described in subsection (1).
(3)
Notwithstanding subsections (1) and (2) of this section and any other provision of this title, a federal home loan bank shall not be stayed, enjoined or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under a security agreement or under any pledge agreement, security agreement, collateral agreement or other similar arrangement or credit enhancement relating to a security agreement to which the federal home loan bank is a party.
Laws, 1991, ch. 417, § 6, eff. 3/20/1991.
Amended by Laws, 2023, ch. 329, SB 2227,§ 2, eff. 7/1/2023.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-13 - Cooperation with Commissioner of Insurance; penalty for obstructing or interfering with proceedings; hearings

(1)
Any officer, manager, director, trustee, owner, employee or agent of any insurer, or any other persons with authority over or in charge of any segment of the insurer's affairs, shall cooperate with the commissioner in any proceeding under this chapter or any investigation preliminary to the proceeding. The term "person" as used in this section shall include any person who exercises control, directly or indirectly, over activities of the insurer through any holding company or other affiliate of the insurer. "To cooperate" shall include, but shall not be limited to, the following:
(a)
To reply promptly in writing to any inquiry from the commissioner requesting such a reply; and
(b)
To make available to the commissioner any books, accounts, documents, or other records or information or property of or pertaining to the insurer and in his possession, custody or control.
(2)
No person shall obstruct or interfere with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
(3)
This section shall not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings, or other orders.
(4)
Any person included within subsection (1) who fails to cooperate with the commissioner, or any person who obstructs or interferes with the commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any order the commissioner issued validly under this chapter, may:
(a)
Be sentenced to pay a fine not exceeding Ten Thousand Dollars ($10,000.00) or to undergo imprisonment for a term of not more than one (1) year, or both; or
(b)
After a hearing, be subject to the imposition by the commissioner of a civil penalty not to exceed Ten Thousand Dollars ($10,000.00) and shall be subject further to the revocation or suspension of any insurance licenses issued by the commissioner.
Laws, 1991, ch. 417, § 7, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-15 - Commencement of proceedings under former law; application of current provisions

Every proceeding commenced under the laws in effect before the enactment of this chapter shall be deemed to have commenced under this chapter for the purpose of conducting the proceeding henceforth, except that in the discretion of the commissioner the proceeding may be continued, in whole or in part, as it would have been continued had this chapter not been enacted.
Laws, 1991, ch. 417, § 8, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-17 - Restrictions on insurer after commencement of delinquency proceedings

No insurer that is subject to any delinquency proceedings, whether formal or informal (administrative or judicial), shall:
(a)
Be released from such proceeding unless such proceeding is converted into a judicial rehabilitation or liquidation proceeding;
(b)
Be permitted to solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority;
(c)
Be returned to the control of its shareholders or private management; or
(d)
Have any of its assets returned to the control of its shareholders or private management until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses thereof and interest on all such payments and expenses, shall have been repaid to the guaranty associations or a plan of repayment by the insurer shall have been approved by the guaranty association.
Laws, 1991, ch. 417, § 9, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-19 - Petition for court order for formal delinquency proceeding; content of order; ex parte order; duration of order; affect on contractual obligations; hearings; review of order; notice

(1)
The commissioner may file in the chancery court a petition alleging, with respect to a domestic insurer:
(a)
That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter;
(b)
That the interests of policyholders, creditors or the public will be endangered by delay; and
(c)
The contents of an order deemed necessary by the commissioner.
(2)
Upon a filing under subsection (1), the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business; and until further order of the court enjoin the insurer and its officers, managers, agents and employees from disposition of its property and from the transaction of its business except with the written consent of the commissioner.
(3)
The court shall specify in the order what its duration shall be, which shall be such time as the court deems necessary for the commissioner to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold such hearings as it deems desirable after such notice as it deems appropriate, and may extend, shorten or modify the terms of the seizure order. The court shall vacate the seizure order if the commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall ipso facto vacate the seizure order.
(4)
Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the insurer.
(5)
An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold such a hearing and review not more than fifteen (15) days after the request. A hearing under this subsection may be held privately in chambers and it shall be so held if the insurer proceeded against so requests.
(6)
If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.
Laws, 1991, ch. 417, § 10, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-21 - Confidentiality of records pertaining to proceedings

In all proceedings and judicial reviews under Section
83-24-19
, all records of the insurer, other documents, and all insurance department files and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance therewith, unless and until the chancery court, after hearing arguments from the parties in chambers, shall order otherwise; or unless the insurer requests that the matter be made public. Until such court order, all papers filed with the clerk of the chancery court shall be held by him in a confidential file.
Laws, 1991, ch. 417, § 11, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-25 - Rehabilitator designated; affect of order of rehabilitation; affect on contractual obligations

(1)
An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the commissioner and his successors in office the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the Clerk of the Chancery Court of the First Judicial District of Hinds County or of the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that clerk would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(2)
Any order issued under this section shall require accountings to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in its order, but no less frequently than semiannually. Each accounting shall include a report concerning the rehabilitator's opinion as to the likelihood that a plan will be prepared by the rehabilitator and the timetable for doing so.
(3)
Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer nor shall it be grounds for retroactive revocation or retroactive cancellation of any contracts of the insurer, unless such revocation or cancellation is done by the rehabilitator pursuant to Section
83-24-27
.
Laws, 1991, ch. 417, § 13, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-29 - Stay of action or proceeding; statute of limitations; defense of laches; standing to appear in proceedings

(1)
Any court in this state before which any action or proceeding is pending in which the insurer is a party or is obligated to defend a party when a rehabilitation order against the insurer is entered, shall stay the action or proceeding for ninety (90) days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as he deems necessary in the interests of justice and for the protection of creditors, policyholders and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
(2)
No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty (60) days after the order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within one (1) year or such other longer time as applicable law may permit, institute an action or proceeding on behalf of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which such order is entered.
(3)
Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.
(4)
Notwithstanding subsections (1) and (2) of this section and any other provision of this title, a federal home loan bank shall not be stayed, enjoined, or prohibited from exercising or enforcing any right or cause of action regarding collateral pledged under a security agreement or under any pledge agreement, security agreement, collateral agreement or other similar arrangement or credit enhancement relating to a security agreement to which the federal home loan bank is a party.
Laws, 1991, ch. 417, § 15, eff. 3/20/1991.
Amended by Laws, 2023, ch. 329, SB 2227,§ 3, eff. 7/1/2023.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-31 - Petition for order of liquidation; order of liquidation on grounds of insolvency; petition for order terminating rehabilitation of insurer; restoration of insurer's interest

(1)
Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders or the public, or would be futile, the commissioner may petition the court for an order of liquidation. A petition under this subsection shall have the same effect as a petition under Section
83-24-33
. The court shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require.
(2)
The protection of the interests of insureds, claimants and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of six (6) months at any time after the appointment of the rehabilitator and the rehabilitator has not filed an application for approval of a plan under Section
83-24-27
, the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency.
(3)
The rehabilitator may at any time petition the court for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. If the court finds that rehabilitation has been accomplished and that grounds for rehabilitation under Section
83-24-23
no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business. The court may also make that finding and issue that order at any time upon its own motion.
Laws, 1991, ch. 417, § 16, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-33 - Petition for order directing liquidation; grounds

The commissioner may petition the court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:
(a)
Of any ground for an order of rehabilitation as specified in Section
83-24-23
, whether or not there has been a prior order directing the rehabilitation of the insurer;
(b)
That the insurer is insolvent; or
(c)
That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors or the public.
Laws, 1991, ch. 417, § 17, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-37 - Continuation of insurer's obligations; termination of coverages

(1)
All policies, including bonds and other noncancellable business, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of:
(a)
A period of thirty (30) days from the date of entry of the liquidation orders;
(b)
The expiration of the policy coverage;
(c)
The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy;
(d)
The liquidator has effected a transfer of the policy obligation pursuant to Section
83-24-41
; or
(e)
The date proposed by the liquidator and approved by the court to cancel coverage.
(2)
An order for liquidation under Section
83-24-39
shall terminate coverages at the time specified in subsection (1) of this section for purposes of any other statute.
(3)
Policies of life or health insurance or annuities shall continue in force for such period and under such terms as is provided for by any applicable guaranty association or foreign guaranty association.
(4)
Policies of life or health insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (1) and (2).
Laws, 1991, ch. 417, § 19, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-39 - Petition for order to dissolve corporate existence

The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the commissioner upon or after the granting of a liquidation order. If the dissolution has not previously been ordered, it shall be effected by operation of law upon the discharge of the liquidator if the insurer is insolvent but may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
Laws, 1991, ch. 417, § 20, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-43 - Notice of liquidation order; filing claims with liquidator

(1)
Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:
(a)
By first class mail and either by telegram or telephone to the insurance commissioner of each jurisdiction in which the insurer is doing business;
(b)
By first class mail to any guaranty association or foreign guaranty association which is or may become obligated as a result of the liquidation;
(c)
By first class mail to all insurance agents of the insurer;
(d)
By first class mail to all persons known or reasonably expected to have claims against the insurer, including all policyholders, at their last known address as indicated by the records of the insurer; and
(e)
By publication in a newspaper of general circulation in the county in which the insurer has its principal place of business and in such other locations as the liquidator deems appropriate.
(2)
Except as otherwise established by the liquidator with approval of the court, notice to potential claimants under subsection (1) shall require claimants to file with the liquidator their claims, together with proper proofs thereof under Section
83-24-71
, on or before a date the liquidator shall specify in the notice. The liquidator need not require persons claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall have a duty to keep the liquidator informed of any changes of address.
(3)
(a)
Notice under subsection (1) to agents of the insurer and to potential claimants who are policyholders shall include, where applicable, notice that coverage by state guaranty associations may be available for all or part of policy benefits in accordance with applicable state guaranty laws.
(b)
The liquidator shall promptly provide to the guaranty associations such information concerning the identities and addresses of such policyholders and their policy coverages as may be within the liquidator's possession or control, and otherwise cooperate with guaranty associations to assist them in providing to such policyholders timely notice of the guaranty associations' coverage of policy benefits, including, as applicable, coverage of claims and continuation or termination of coverages.
(4)
If notice is given in accordance with this section, the distribution of assets of the insurer under this chapter shall be conclusive with respect to all claimants, whether or not they received notice.
Laws, 1991, ch. 417, § 22, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-45 - Agent of insurer; duties following notice of liquidation; penalties

(1)
Every person who receives notice in the form prescribed in Section
83-24-43
that an insurer which he represents as an agent is the subject of a liquidation order shall, within thirty (30) days of such notice provide to the liquidator (in addition to the information he may be required to provide pursuant to Section
83-24-13
) the information in the agent's records related to any policy issued by the insurer through the agent, and, if the agent is a general agent, the information in the general agent's records related to any policy issued by the insurer through an agent under contract to him, including the name and address of such subagent. A policy shall be deemed issued through an agent if the agent has a property interest in the expiration of the policy, or if the agent has had in his possession a copy of the declarations of the policy at any time during the life of the policy, except where the ownership of the expiration of the policy has been transferred to another.
(2)
Any agent failing to provide information to the liquidator as required in subsection (1) may be subject to payment of a penalty of not more than One Thousand Dollars ($1,000.00) and may have his licenses suspended after a hearing held by the commissioner.
Laws, 1991, ch. 417, § 23, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-49 - Preparation of list of insurer's assets

(1)
As soon as practicable after the liquidation order but not later than one hundred twenty (120) days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One (1) copy shall be filed in the office of the clerk of the chancery court and one (1) copy shall be retained for the liquidator's files. All amendments and supplements shall be similarly filed.
(2)
The liquidator shall reduce the assets to a degree of liquidity that is consistent with the effective execution of the liquidation.
(3)
A submission to the court for disbursement of assets in accordance with Section
83-24-67
fulfills the requirements of subsection (1) of this section.
Laws, 1991, ch. 417, § 25, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-53 - Transfer of real property of insurer after petition for rehabilitation or liquidation

(1)
After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value; or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred. The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the chancery court in the county where any real property in question is located. The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state shall not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.
(2)
After a petition for rehabilitation or liquidation has been filed and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted:
(a)
A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value; or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred.
(b)
A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon his order, with the same effect as if the petition were not pending.
(c)
A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith.
(d)
A person asserting the validity of a transfer under this section shall have the burden of proof. Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator shall be valid against the liquidator.
(3)
Every person receiving any property from the insurer or any benefit thereof which is a fraudulent transfer under subsection (1) shall be personally liable therefor and shall be bound to account to the liquidator.
(4)
Nothing in this chapter shall impair the negotiability of currency or negotiable instruments.
Laws, 1991, ch. 417, § 27, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-57 - Surrender of preference, lien, conveyance, transfer, assignment or encumbrance by creditor

(1)
No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment or encumbrance voidable under this chapter shall be allowed unless he surrenders the preference, lien, conveyance, transfer, assignment or encumbrance. If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim shall not be allowed unless the money is paid or the property is delivered to the liquidator within thirty (30) days from the date of the entering of the final judgment, except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.
(2)
A claim allowable under subsection (1) by reason of the avoidance, whether voluntary or involuntary, or a preference, lien, conveyance, transfer, assignment or encumbrance, may be filed as an excused last filing under Section
83-24-69
if filed within thirty (30) days from the date of the avoidance, or within the further time allowed by the court under subsection (1).
Laws, 1991, ch. 417, § 29, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-59 - Mutual debts or mutual credits between insurer and another person; setoff

(1)
Mutual debts or mutual credits, whether arising out of one or more contracts between the insurer and another person in connection with any action or proceeding under this chapter, shall be set off and the balance only shall be allowed or paid, except as provided in Section
83-24-65
.
(2)
No set off shall be allowed in favor of any person where:
(a)
The obligation of the insurer to the person would not at the date of the filing of a petition for liquidation entitle the person to share as a claimant in the assets of the insurer; or
(b)
The obligation of the insurer to the person was purchased by or transferred to the person with a view to its being used as a set off;
(c)
The obligation of the person is to pay an assessment levied against the members or subscribers of the insurer, or is to pay a balance upon a subscription to the capital stock of the insurer, or is in any other way in the nature of a capital contribution.
Laws, 1991, ch. 417, § 30; Laws, 1997, ch. 351, § 1, eff. 7/1/1997.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-61 - Report by liquidator after order of liquidation; assessments; notice

(1)
As soon as practicable but not more than two (2) years from the date of an order of liquidation under Section
83-24-35
of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:
(a)
The reasonable value of the assets of the insurer;
(b)
The insurer's probable total liabilities;
(c)
The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment; and
(d)
A recommendation as to whether or not an assessment should be made and in what amount.
(2)
(a)
Upon the basis of the report provided in subsection (1), including any supplements and amendments thereto, the court may levy one or more assessments against all members of the insurer who are subject to assessment.
(b)
Subject to any applicable legal limits on assessability, the aggregate assessment shall be for the amount that the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment, exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.
(3)
After levy of assessment under subsection (2), the liquidator shall issue an order directing each member who has not paid the assessment pursuant to the order to show cause why the liquidator should not pursue a judgment therefor.
(4)
The liquidator shall give notice of the order to show cause by publication, and by first class mail to each member liable thereunder mailed to his last known address as it appears on the insurer's records, at least twenty (20) days before the return day of the order, to show cause.
(5)
(a)
If a member does not appear and serve duly verified objections upon the liquidator on or before the return day of the order to show cause under subsection (3), the court shall make an order adjudging the member liable for the amount of the assessment against him pursuant to subsection (3), together with costs, and the liquidator shall have a judgment against the member therefor.
(b)
If on or before such return day, the member appears and serves duly verified objections upon the liquidator, the commissioner may hear and determine the matter or may appoint a referee to hear it and make such order as the facts warrant. In the event that the commissioner determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.
(6)
The liquidator may enforce any order or collect any judgment under subsection (5) by any lawful means.
Laws, 1991, ch. 417, § 31, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-63 - Recovery from reinsurers; amount

The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly to an insured or other creditor shall not diminish the reinsurer's obligation to the insurer's estate except when the reinsurance contract provided for direct coverage of a named insured and the payment was made in discharge of that obligation.
Laws, 1991, ch. 417, § 32, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-65 - Payment of premiums; recovery of unearned premiums; credits; setoffs; violation of provisions; penalties; notice of violation; hearing; appeal

(1)
(a)
An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid premium for the full policy term due the insurer at the time of the declaration of insolvency, whether earned or unearned, as shown on the records of the insurer. The liquidator shall also have the right to recover from such person any part of an unearned premium that represents commission of such person. Credits or setoffs or both shall not be allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.
(b)
An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer.
(2)
Upon satisfactory evidence of a violation of this section, the commissioner may pursue either one or both of the following courses of action:
(a)
Suspend or revoke or refuse to renew the licenses of such offending party or parties.
(b)
Impose a penalty of not more than One Thousand Dollars ($1,000.00) for each and every act in violation of this section by the party or parties.
(3)
Before the commissioner shall take any action as set forth in subsection (2), he shall give written notice to the person, company, association or exchange accused of violating the law, stating specifically the nature of the alleged violation; and fixing a time and place, at least ten (10) days thereafter, when a hearing on the matter shall be held. After such hearing, or upon failure of the accused to appear at such hearing, the commissioner, if he shall find such violation, shall impose such of the penalties under subsection (2) as he deems advisable.
(4)
When the commissioner shall take action in any or all of the ways set out in subsection (2), the party aggrieved may appeal the action to the court.
Laws, 1991, ch. 417, § 33, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-69 - Filing proof of claims; late filing

(1)
Proof of all claims shall be filed with the liquidator in the form required by Section
83-24-71
on or before the last day for filing specified in the notice required under Section
83-24-43
, except that proof of claims for cash surrender values or other investment values in life insurance and annuities need not be filed unless the liquidator expressly so requires.
(2)
The liquidator may permit a claimant making a late filing to share in distributions, whether past or future, as if he were not late, to the extent that any such payment will not prejudice the orderly administration of the liquidation, under the following circumstances:
(a)
The existence of the claim was not known to the claimant and that he filed his claim as promptly thereafter as reasonably possible after learning of it;
(b)
A transfer to a creditor was avoided under Sections
83-24-51
through
83-24-55
, or was voluntarily surrendered under Section
83-24-57
, and that the filing satisfies the conditions of Section
83-24-57
;
(c)
The valuation under Section
83-24-81
, of security held by a secured creditor shows a deficiency, which is filed within thirty (30) days after the valuation.
(3)
The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late, if such claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, subsequent to the last day for filing where such payments were made and expenses incurred as provided by law.
(4)
The liquidator may consider any claim filed late which is not covered by subsection (2), and permit it to receive distributions which are subsequently declared on any claims of the same or lower priority if the payment does not prejudice the orderly administration of the liquidation. The late-filing claimant shall receive, at each distribution, the same percentage of the amount allowed on his claim as is then being paid to claimants of any lower priority. This shall continue until his claim has been paid in full.
Laws, 1991, ch. 417, § 35, eff. 3/20/1991.
Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 24 - INSURERS REHABILITATION AND LIQUIDATION ACT (§§ 83-24-1 — 83-24-119) › Section 83-24-71 - Content of proof of claims

(1)
Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable:
(a)
The particulars of the claim including the consideration given for it;
(b)
The identity and amount of the security on the claim;
(c)
The payments made on the debt, if any;
(d)
That the sum claimed is justly owing and that there is no setoff, counterclaim or defense to the claim;
(e)
Any right of priority of payment or other specific right asserted by the claimants;
(f)
A copy of the written instrument which is the foundation of the claim; and
(g)
The name and address of the claimant and the attorney who represents him, if any.
(2)
No claim need be considered or allowed if it does not contain all the information in subsection (1) which may be applicable. The liquidator may require that a prescribed form be used, and may require that other information and documents be included.
(3)
At any time the liquidator may request the claimant to present information or evidence supplementary to that required under subsection (1) and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.
(4)
No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation, and no judgment or order against an insured or the insurer entered at any time by default or by collusion, need be considered as evidence of liability or of quantum of damages. No judgment or order against an insured or the insurer entered within four (4) months before the filing of the petition need be considered as evidence of liability or of the quantum of damages.
(5)
All claims of a guaranty association or foreign guaranty association shall be in such form and contain such substantiation as may be agreed to by the association and the liquidator.
Laws, 1991, ch. 417, § 36, eff. 3/20/1991.