Mississippi Administrative Code › Title 19 - Department of Insurance › Part 6 - Insurance Agents, Solicitors, and Adjustors › Chapter 4 - (LA&H 74-2) Unlawful Participation of Unlicensed Persons in the Life, Health and Accident Insurance Business › Rule 19-6-4.01 - Requirement of Licensure to Sell, Solicit or Negotiate Life, Health and Accident Insurance

Current through June 25, 2024
WHEREAS, Section
				  83-17-1,
				  Mississippi Code of 1972, provides that every person who solicits insurance on
				  behalf of any insurance company or who takes or transmits, other than for
				  himself an application for insurance, or a policy of insurance or who
				  advertises or otherwise gives notice that he will receive or transmit the same,
				  or who shall receive or deliver a policy of insurance of any such company or
				  receive, collect or transmit any premium of insurance, or do or perform any
				  other act or thing in the making or consummation of any contract of insurance,
				  for or with any insurance company, other than for himself, whether any of such
				  acts shall be done at the instance, or request, or by the employment of such
				  insurance company, or of, or by any broker or any other person shall be held to
				  be the agent of the company for which the act is done or the risk is taken as
				  to all the duties and liabilities imposed by law, and a criminal penalty is
				  provided for any violation of such prohibitions; and
WHEREAS, Section 83-17-101, Mississippi Code of 1972, defines
				  an agent as one who acts in any manner, directly or indirectly, in the
				  solicitation of, negotiation for, or procurement or making of a contract of
				  life, health or accident insurance, or making of an annuity contract, including
				  hospital services association agents or agents within the meaning of said act,
				  and are required to obtain a license and certificate of authority in order to
				  be lawfully able to do any of such acts and the doing of any such acts without
				  such license constitutes a criminal offense against the State of Mississippi;
				  and
WHEREAS, Section 83-17-105,Mississippi Code of 1972,
				  prohibits any insurance company or agent from paying, directly or indirectly,
				  any commission or any other valuable consideration to any person for services
				  as an insurance agent unless such person holds a valid and current agent's
				  license and certificate of authority, and prohibits any unlicensed person from
				  accepting any such commission or any other valuable consideration and makes
				  both the payment of such and the receipt of such a criminal offense against the
				  State of Mississippi; and
WHEREAS, Section
				  83-17-7,
				  Mississippi Code of 1972, makes it unlawful for any insurance company or agent
				  to pay, directly or indirectly, any commission, brokerage, or other valuable
				  consideration, on account of any policy or policies written on risks in this
				  State, to any person, agent, firm, or corporation not duly licensed as an
				  insurance agent in this State; and
WHEREAS, there is no provision in the statutes of this State
				  for the licensing of any corporate agency/or partnership as an agent pertaining
				  to life and health and accident insurance, although there is a provision for
				  the licensing of a corporate agency in the fire and casualty lines; and
WHEREAS, it has come to the attention of the Commissioner of
				  Insurance that certain insurance companies and licensed agents have
				  participated in the solicitation of insurance through the means of certain
				  trusts, administrators, or other like unauthorized and unlicensed media;
				  and
WHEREAS, it has come to the attention of the Commissioner of
				  Insurance that certain insurance companies and agents are alleged to have made
				  unlawful payments to certain individuals and associations, being neither
				  insurance companies nor agents, or certain valuable considerations have been
				  given in return for the sponsorship of certain insurance programs by such
				  individuals or associations; and
WHEREAS, it has come to the attention of the Commissioner of
				  Insurance that certain corporate insurance agencies duly licensed as fire and
				  casualty agencies are alleged to have solicited and participated otherwise in
				  the sale of life, health and accident insurance in violation of the statutes of
				  this State;
THEREFORE, all insurance companies and agents licensed and
				  holding certificates of authority to do business in this State are hereby
				  notified that any and all of such acts should be terminated immediately and
				  that hereafter any violations of the foregoing statutes, directly or
				  indirectly, under any guise or pretense whatsoever, will, after investigation
				  and proof of guilt, result in the revocation of the certificate of authority
				  and license of any insurance company or agent participating in any of such
				  acts, either directly or indirectly, whatsoever the guise or pretense
				  thereof.
All insurance companies authorized to write life, health and
				  accident business in this State are directed to bring this regulation to the
				  attention of all their agents and other personnel having any responsibility in
				  the solicitation, sale or issuance of life, health and accident
				  policies.
Miss. Code Ann. §
										83-17-1,
				  et seq. (Rev. 2011)