Mississippi Administrative Code › Title 19 - Department of Insurance › Part 1 - General › Chapter 10 - (LA&H 76-1) Sale of Trusted Life, Health, and Accident Insurance Group Accounts › Rule 19-1-10.01

Current through June 25, 2024
WHEREAS, a marked degree of confusion presently exists in
				  this state by reason of the solicitation and sale of trusteed group insurance
				  accounts under the name of various "trusts", and which are shown to be
				  administered by certain administrators, consultants, trustees, and others, most
				  of whom do not hold privilege licenses issued by the Mississippi Insurance
				  Department, and;
WHEREAS, there are shown to be many instances wherein such
				  trusteed business is presently being solicited and sold within the State of
				  Mississippi by persons representing insurance companies which are either not
				  licensed in Mississippi or have had their authority to do business in
				  Mississippi suspended or revoked by the Commissioner of Insurance, and further
				  instances where such business is being solicited by agents who have not been
				  issued certificates of authority to represent such insurance companies,
				  and;
WHEREAS, advertisements and brochures soliciting such
				  businesses are being circulated giving prominence to the name of such trusts,
				  administrators, consultants, and others, instead of conducting such business in
				  the proper corporate name of the insurance company underwriting or offering
				  such business, which is violative of Section
				  83-5-9,
				  Mississippi Code of 1972, and;
WHEREAS, the Mississippi Insurance Department is encountering
				  serious difficulty in answering general inquiries and giving proper assistance
				  to the general public of the State of Mississippi in matters of claims arising
				  under such trusteed account business, it is deemed in the public interest for
				  the Mississippi Insurance Department to promulgate and issue the following
				  regulation:
On and after this date, it shall be unlawful for any
				  insurance company to solicit, sell or underwrite the sale of any trusteed group
				  insurance account within the State of Mississippi, directly or indirectly,
				  unless and until it shall have previously filed for public record with the
				  Mississippi Insurance Department a detailed summarization of such proposed
				  activities, including all advertising materials, brochures, trust agreements,
				  and sales materials of whatever nature and type, including the name of the
				  administrators, consultants, trustees, supervising general agencies, and others
				  participating therein, which material shall in all instances give prominence to
				  the proper corporate title of the insurance company underwriting such program,
				  and which shall be in addition to submission of all policy contract forms,
				  applications, and related endorsement forms which are made a part of the
				  insurance contract, for our prior review and approval as prescribed by the
				  controlling insurance statutes.
Willful violation of these regulations by an insurance
				  company shall be deemed to be grounds for revocation of the insurance company's
				  privilege license, which shall be in addition to any other penalty provided by
				  statute.
This regulation will be effective as of this date, March 15,
				  1976.
Miss. Code Ann. §
										83-5-9
				  (Rev. 2011)