Mississippi Administrative Code › Title 19 - Department of Insurance › Part 2 - Life Insurance › Chapter 3 - (LA&H 73-5) Minimum Burial Rate Schedule (and Supplement) › Rule 19-2-3.04 - Supplement

Current through June 25, 2024
TO: All Persons and Associations Operating Under the Burial
				  Insurance
Laws ofthe State of Mississippi
FROM: Evelyn Gandy
Commissioner of Insurance
The Insurance Department has been asked by a number of burial
				  association owners to give consideration to several changes and modifications
				  which they desire and purpose to have made to the rules and regulations which
				  were issued and mailed to you from this office on November 6, 1973. Careful
				  study and thorough consideration have been given to these subjects which are
				  more fully reviewed and discussed as follows:
A.
Minimum Rate
				Schedule
- Nothing contain in our regulation of November 6, 1973,
				was intended to convey the impression that the Commissioner of Insurance had
				established a mandatory standard rate to be used by any association whose
				policyholders services, funeral benefits and plan of operation under the
				revised law justify the charging of a higher premium. Instead, this schedule
				merely lists and sets forth the
lowest or minimum
rate
				which would be approved by the Insurance Department for any association.
Our study shows that a substantial number of associations are
				  presently using this minimum rate and can justify its continued usage. Further,
				  no advantage has been found for this or any other so-called minimum rate
				  schedule except the doubtful value of possibly discouraging willful intent to
				  twist business from one association to another. The Insurance Department holds
				  the view that any such unethical practice can and will be properly dealt with
				  under other related insurance statuses.
In view of the foregoing, notice is hereby given that no
				  change has been approved or made in the afore-mentioned minimum rate schedule
				  which has been long-established and accepted by both the Insurance Department
				  and burial insurance industry for many years. However, we emphasize again that
				  each association has the option of using this minimum rate or a higher rate
				  provided that proper justification for whichever rate is proposed is submitted
				  to the Insurance Department.
B.
Standard
				Provisions
- A large number of associations have submitted new
				policy forms which have completely failed to incorporate or include the new
				standard provisions which are an absolutely mandatory requirement of the
				revised burial law after January 1, 1974. For your information and guidance in
				this regard, we enclose a copy of the required standard provisions which must
				appear in every burial policy written on and after January 1, 1974.
There is only one exception or change which will be permitted
				  in the Standard Provisions, and this relates to Section 8. If you wish your
				  policy to provide for a 50% pay-off, Section 8 should read:
"If death and/or burial occurs more than fifty (50) miles
				  from any location of the funeral home named herein and should the beneficiary
				  therefore deem it impractical for the association to service this contract, the
				  association shall pay in cash to the member not less than fifty percent (50%)
				  of the face value of the certificate to which the member is entitled or the
				  full return of the premium paid by the member, not to exceed three-fourths
				  percent (3/4%) of the face value of the certificate, whichever amount is
				  larger. If death and/or burial occurs within fifty (50) miles of any location
				  of the funeral home named herein, and the member desires to use a funeral home
				  other than the funeral home named in this contract, the association's liability
				  shall be the full return of the premium paid by the member not to exceed the
				  face value of the certificate."
If you wish your policy to provide for a 100% pay-off, then
				  Section 8 should read:
"If death and/or burial occurs more than fifty (50) miles
				  from any location of the funeral home named herein and should the member
				  therefore deem it impractical for the association to service this contract, the
				  association shall pay in cash to the member not less than one-hundred percent
				  (100%) of the face value of the certificate to which the member is entitled,
				  which shall be in full settlement of the claim. If death and/or burial occurs
				  within fifty (50) miles of any location of the funeral home named herein, and
				  the member desires to use a funeral home other than the funeral home named in
				  this contract, the association's liability shall be the full return of the
				  premiums paid by the member not to exceed the face value of the
				  certificate."
No burial association will be authorized to issue a burial
				  policy on and after January 1, 1974, unless and until it has previously
				  submitted and received the approval of the Commissioner of Insurance of its
				  policy forms and rates which conform and comply with the rules and regulations
				  of our Order dated November 6, 1973, and the above-mentioned authorized
				  changes.
Ordered this the 30th day of November, 1973.
Miss. Code Ann. §
										83-37-35
				  (Rev. 2011)