Mississippi Administrative Code › Title 5 - Banking and Consumer Finance › Part 3 - Consumer Finance Activities › Chapter 1 - Small Loan Regulatory Law and Small Loan Privilege Tax Law › Rule 5-3-1.3 - Insurance: General

Current through June 25, 2024
1. All insurance
				policies issued by or through a Licensee or an agent of a Licensee shall be
				written only through insurance companies authorized to do business in the State
				of Mississippi and only through an insurance agent or broker licensed by the
				State of Mississippi. Only licensed agents or brokers shall solicit sales of
				insurance coverage. The insurance license of the agent or broker shall be
				current and conspicuously posted in the Licensee's office.
2. A Licensee shall not require additional
				insurance from or procure additional insurance for the borrower if the borrower
				furnishes to the lender evidence of insurance sufficient to protect the full
				amount of the lender's lien. Such evidence shall indicate that the premium has
				been paid and the certificate of insurance shall name the Licensee as loss
				payee.
3. A Licensee shall accept
				properly endorsed pre-existing insurance policies owned by the borrower at the
				time of the making of a loan.
4.
				Each Licensee shall maintain in its licensed office a copy of all insurance
				policies issued. Records for all policies issued by or through the Licensee or
				an agent of Licensee, shall indicate the name and address of the insurance
				company and the insured borrower, name of second beneficiary, type of
				insurance, premium amount, amount of coverage, term of policy, and any property
				covered by such policy.
5. Each
				Licensee shall maintain a file in its licensed office containing all pertinent
				information regarding claims made under any insurance sold with proof of
				payment made to or on behalf of the borrower or designated beneficiary, or a
				signed receipt from the borrower or beneficiary acknowledging receipt of
				payment.
6. A copy of all
				documentation including the initial claim worksheet and all correspondence
				pertaining to an insurance claim shall be maintained for twenty-four (24)
				months after the date of the final transaction.
7. An original copy of the policy or
				certificate shall be given to the borrower and a copy shall be retained in the
				borrower's loan file.
8. A licensee
				shall maintain documentation of all insurance rates approved by the Mississippi
				Department of Insurance.
9. In the
				event of a loss, the Licensee shall, upon being notified by the borrower of
				such loss, promptly report such fact to the insurance company and when
				requested by the borrower, advise and assist the borrower in completing the
				necessary forms to report to the insurance company or its designated claim
				agent or representative. The Licensee shall exercise reasonable efforts to
				insure that such claim is processed without undue delay in accordance with the
				terms of the policy.
10. In the
				event of the payment of a loan in full one or more months prior to the maturity
				date, whether by cash, new loan renewal, or refinancing, the insurance
				policy(s) or certificates shall be cancelled and the borrowers shall be
				entitled to a refund of the unearned portion (in excess of $2.00) of the
				premium on any property insurance written through the Licensee. Such refund
				shall be calculated under the Rule of 78's, unless the policy or certificate
				calls for a greater refund amount. Calculations shall be based from the date of
				the loan to the date the loan is paid-off In calculating a Rule of 78's refund,
				one (1) day shall constitute a full month earned.
Miss. Code Ann. §
										75-67-129;
				  Miss. Code Ann. §
										75-67-243;
				  Effective date March 30, 2006