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 83-24-7 - Definitions

For the purposes of this chapter:
(a)
"Ancillary state" means any state other than a domiciliary state.
(b)
"Commissioner" means the Commissioner of Insurance.
(c)
"Creditor" is a person having any claim, whether matured or unmatured, liquidated or unliquidated, secured or unsecured, absolute, fixed or contingent.
(d)
"Delinquency proceeding" means any proceeding instituted against an insurer for the purpose of liquidating, rehabilitating, reorganizing or conserving such insurer, and any summary proceeding under Section
83-24-19
. "Formal delinquency proceeding" means any liquidation or rehabilitation proceeding.
(e)
"Doing business" includes any of the following acts, whether effected by mail or otherwise:
(i)
The issuance or delivery of contracts of insurance to persons residing in this state;
(ii)
The solicitation of applications for such contracts, or other negotiations preliminary to the execution of such contracts;
(iii)
The collection of premiums, membership fees, assessments or other consideration for such contracts;
(iv)
The transaction of matters subsequent to execution of such contracts and arising out of them; or
(v)
Operating under a license or certificate of authority, as an insurer, issued by the Department of Insurance.
(f)
"Domiciliary state" means the state in which an insurer is incorporated or organized; or, in the case of an alien insurer, its state of entry.
(g)
"Fair consideration" is given for property or obligation:
(i)
When in exchange for such property or obligation, as a fair equivalent therefor, and in good faith, property is conveyed or services are rendered or an obligation is incurred or an antecedent debt is satisfied; or
(ii)
When such property or obligation is received in good faith to secure a present advance or antecedent debt in amount not disproportionately small as compared to the value of the property or obligation obtained.
(h)
"Federal home loan bank" means an institution chartered under the Federal Home Loan Bank Act (
12 USC 1421
et seq.), as amended, or its successor statute.
(i)
"Foreign country" means any other jurisdiction not in any state.
(j)
"General assets" means all property, real, personal, or otherwise, not specifically mortgaged, pledged, deposited or otherwise encumbered for the security or benefit of specified persons or classes of persons. As to specifically encumbered property, "general assets" includes all such property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby. Assets held in trust and on deposit for the security or benefit of all policyholders or all policyholders and creditors, in more than a single state, shall be treated as general assets.
(k)
"Guaranty association" means the Mississippi Insurance Guaranty Association Law, as amended, the Mississippi Life and Health Insurance Guaranty Association Act, as amended, and any other similar entity now or hereafter created by the Legislature of this state for the payment of claims of insolvent insurers. "Foreign guaranty association" means any similar entities now in existence in or hereafter created by the legislature of any other state.
(l)
"Insolvency" or "insolvent" means:
(i)
For an insurer issuing only assessable fire insurance policies:
(A)
The inability to pay any obligation within thirty (30) days after it becomes payable; or
(B)
If an assessment be made within thirty (30) days after such date, the inability to pay such obligation thirty (30) days following the date specified in the first assessment notice issued after the date of loss.
(ii)
For any other insurer, that the insurer is unable to pay its obligations when they are due, or when its admitted assets do not exceed its liabilities plus the greater of:
(A)
Any capital and surplus required by law for its organization; or
(B)
The total par or stated value of its authorized and issued capital stock.
(iii)
As to any insurer licensed to do business in this state as of March 20, 1991, which does not meet the standard established under subparagraph (ii), the term "insolvency" or "insolvent" shall mean for a period not to exceed three (3) years from March 20, 1991, that it is unable to pay its obligations when they are due or that its admitted assets do not exceed its liabilities plus any required capital contribution ordered by the commissioner under provisions of the insurance law.
(iv)
For purposes of this subsection, "liabilities" shall include, but not be limited to, reserves required by statute or by insurance department general regulations or specific requirements imposed by the commissioner upon a subject company.
(m)
"Insurer" means any person who has done, purports to do, is doing or is licensed to do an insurance business, and is or has been subject to the authority of, or to liquidation, rehabilitation, reorganization, supervision, or conservation by, any insurance commissioner. For purposes of this chapter, any other persons included under Section
83-24-5
shall be deemed to be insurers.
(n)
"Preferred claim" means any claim with respect to which the terms of this chapter accord priority of payment from the general assets of the insurer.
(o)
"Receiver" means receiver, liquidator, rehabilitator or conservator as the context requires.
(p)
"Reciprocal state" means any state other than this state in which in substance and effect Sections
83-24-35
,
83-24-103
,
83-24-105
,
83-24-109
,
83-24-111
and
83-24-113
are in force, and in which provisions are in force requiring that the commissioner or equivalent official be the receiver of a delinquent insurer, and in which some provision exists for the avoidance of fraudulent conveyances and preferential transfers.
(q)
"Secured claim" means any claim secured by mortgage, trust deed, pledge, deposit as security, escrow, or otherwise; but not including special deposit claims or claims against general assets. The term also includes claims which have become liens upon specific assets by reason of judicial process.
(r)
"Special deposit claim" means any claim secured by a deposit made pursuant to statute for the security or benefit of a limited class or classes of persons, but not including any claim secured by general assets.
(s)
"State" means any state, district or territory of the United States and the Panama Canal Zone.
(t)
"Transfer" shall include the sale and every other and different mode, direct or indirect, of disposing of or of parting with property or with an interest therein, or with the possession thereof or of fixing a lien upon property or upon an interest therein, absolutely or conditionally, voluntarily, by or without judicial proceedings. The retention of a security title to property delivered to a debtor shall be deemed a transfer suffered by the debtor.
Laws, 1991, ch. 417, § 4, eff. 3/20/1991.
Amended by Laws, 2023, ch. 329, SB 2227,§ 1, eff. 7/1/2023.