Mississippi Administrative Code › Title 19 - Department of Insurance › Part 4 - Automobile Insurance › Chapter 1 - A (79-1) Automobile Club Service Contracts Pursuant To The Provisions Of Miss. Code Ann. Sections 81-11-201 Through 83-11-247 › Rule 19-4-1.01 - Automobile Club Service Contracts

Current through June 25, 2024
TO: ALL COMPANIES WRITING AUTOMOBILE CLUB SERVICE CONTRACTS
				  PURSUANT TO THE PROVISIONS OF SECTIONS
				  83-11-201
				  THROUGH
				  83-11-247
				  OF THE
MISSISSIPPI CODE OF 1972, ANNOTATED
.
WHEREAS, it has come to the attention of the Department of
				  Insurance and the Commissioner of Insurance that certain automobile clubs and
				  automobile club agents have, because of certain company-agent problems
				  committed acts that are either misleading or confusing to the automobile club
				  buying public in revealing to the named club member the identity of the
				  automobile club holding the member's automobile club service contract,
				  and
WHEREAS, following a detailed study of the automobile club
				  service contract field in the State of Mississippi, it has been decided that
				  some automobile clubs and automobile club agents are involved in the practice
				  of "twisting" to the detriment of the automobile club buying public of the
				  State of Mississippi.
THEREFORE, it is the considered opinion of the Insurance
				  Commissioner of the State of Mississippi that certain voluntarily steps be
				  taken by the automobile clubs doing business in this state to help remedy this
				  problem, and,
THAT the Commissioner of Insurance suggests that all
				  automobile clubs doing business in this state initiate a program wherein all
				  agents presently in the employ of, or hired from this day forward, be employed
				  through the use of a written contract setting forth all of the conditions and
				  responsibilities of such employment and that each and every agent's contract
				  contain the following standard provisions in the words in which the same appear
				  in this letter, to wit:
"It is agreed, in the event of the termination of this
				  employment by either party with or without cause, that for a period of one (1)
				  year after the date of such termination, if such employee shall go into
				  business alone or in conjunction with one or more persons or in the employ of
				  any person, partnership, association, corporation, automobile club or other
				  legal entity where the business of such employment shall be the same or similar
				  to that of the company, that such employee shall not;
(1) Solicit any active or paid up members or
				holders of service contracts of the company;
(2) Loan to, pay off or pay on any active
				membership or service contract of the company.
(3) Transmit or reveal any information,
				written or oral, concerning the active or paid up membership or service
				contract of the company, or its method of operation, or the types of benefits
				offered by the company or use same for himself or others in the same or similar
				employment.
Further, members or service contract holders shall be
				  regarded or defined as; All persons, and each and every one thereof, for whom
				  the company performs services in the course of its business, are and shall be
				  the members or service contract holders of the company , as well after the
				  termination of, as at all times during, the employment of the employee, not
				  withstanding that some or all of said persons may have been induced to give
				  their patronage to the company by the solicitation of the employee, or of
				  someone on his behalf, either during the usual hours of employment of the
				  employee or otherwise, and not withstanding that all or some of such persons
				  may have previously been customers of the employee or others."
WHEREFORE, it is requested that all automobile clubs doing
				  business in this state announce to the Commissioner of Insurance, within ten
				  (10) working days of this writing, their intention to either comply with or
				  resist this request, and if such automobile club refuses to voluntarily comply
				  with this request to state their reasons for same. Full compliance of this
				  request will be effective thirty (30) days from the date of this
				  writing.
IT IS, THEREFORE, the hope of the Commissioner of Insurance
				  that all automobile clubs doing business in this state will comply with this
				  request so that the automobile club buying public of this state will be
				  protected from the practices mentioned herein and that it will not be necessary
				  to promulgate any further rules or regulations in the furtherance of the
				  purposes stated herein. The Department of Insurance and the Commissioner of
				  Insurance earnestly solicit the cooperation of all concerned.
Dated: February 12, 1979.
Miss. Code Ann.
				  §§
										83-11-201
				  through
				  83-11-247
				  (Rev. 2011)