Foreign Companies

Miss. Code Ann. tit. 83, ch. 21
in effect

Miss. Code Ann. § 83-21-1 Certificate of authority; funding of agency expenses; deposit of monies into State General Fund.

No foreign insurance, indemnity or guaranty company or other insurer shall be admitted and authorized to do business in this state until: It shall deposit with the Commissioner of Insurance a certified copy of its charter, articles of incorporation, bylaws or deed of settlement, and shall pay for the filing of such document the sum of One Thousand Dollars ($1,000.00) and a statement of its financial condition and business in such form and detail as he may require, signed and sworn to by its president and secretary or other proper officer. It shall satisfy the commissioner that it is fully and legally organized under the laws of its state or government to do the business it proposes to transact; and such capital or net assets are well invested and immediately available for the payment of losses in this state, and that it insures on any single hazard a sum no larger than one-tenth (1/10) of its net assets. It shall, by a duly executed instrument filed in his office, constitute and appoint the Commissioner of Insurance, and his successor, its true and lawful attorney, upon whom all process in any action or legal proceeding against it may be served, and therein shall agree that any process against it which may be served upon its attorney shall be of the same force and validity as if served on the company, and the authority thereof shall continue in force irrevocable so long as any liability of the company remains outstanding in this state. The service of such process shall be made by leaving a copy of the same in the hands or office of the commissioner. Copies of such instrument certified by the commissioner shall be deemed sufficient evidence thereof, and service upon such attorney shall be deemed sufficient service upon the principal. It shall appoint as its agent or agents in this state some resident or residents thereof, other than the commissioner; such appointment to be made in writing, signed by the president and secretary or manager or general agent, and filed in the office of the commissioner, authorizing the agent to acknowledge service of process for and on behalf of the company, consenting that service of process on the agent shall be as valid as if served upon the company, according to the laws of this state, and waiving all claims of error by reason of such service. It shall obtain from the commissioner a certificate that it has complied with the laws of the state and is authorized to make contracts of insurance. Such fees collected by the commissioner shall be deposited in the special fund in the State Treasury designated as the “Insurance Department Fund.” From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

Miss. Code Ann. § 83-21-3 Requirements for admission.

No foreign insurance company, association, or other insurance entity, either stock, mutual, or reciprocal, shall be admitted to do business or granted a certificate of authority or license to do business in this state unless and until such company or association shall have done business for a period of at least two (2) years in the state of its domicile, or unless such company seeking admission is the subsidiary or affiliate of a company already licensed in Mississippi. The Commissioner of Insurance may waive this requirement upon a written request by the applicant and a finding that the applicant meets the following criteria: The company provides a service that is considered underserved in the state; The company has adequate capital and surplus; and The company possesses significant management and business experience in its respective line of business. No foreign stock insurance company shall be admitted or granted a certificate of authority or license to do business in this state unless its paid-up capital stock and its surplus at the time of licensing or renewal of license shall be equal to that required for the organization or incorporation of a like domestic company under the laws of this state. No foreign mutual or reciprocal insurance company or association shall be admitted or granted a certificate of authority or license to do business in this state unless, at the time of licensing or renewal of license, its surplus shall be equal to that required by the laws of this state for the organization or formation of a like domestic insurance company or association. No foreign stock, mutual, or reciprocal insurance company or association, incorporated or organized under the laws of any state of the United States, shall be admitted to do business, or granted a certificate of authority, or have license therefor renewed until such company shall have deposited with the State Treasurer of this state securities in an amount not less than Fifty Thousand Dollars ($50,000.00). Securities deposited in accordance with this section shall be classified as admitted assets for the purpose of determining eligibility of such securities. Provided, however, any company maintaining a deposit with the insurance regulatory authority or any other designated public official of its state of domicile, or of any other state, in trust for the benefit of all its policyholders, or policyholders and creditors, may be exempt from the deposit herein provided upon such company delivering to the Commissioner of Insurance a certificate to such effect, duly authenticated by the appropriate state official holding such deposit. The commissioner may require in addition to the certification of deposit by the public official of its state of domicile an amount not less than Fifty Thousand Dollars ($50,000.00) be deposited with the State Treasurer of this state. Any deposit made in this state under the provisions of this section shall be for the exclusive use and benefit of policyholders, or policyholders and creditors, in this state; and such deposit shall not bar claim to other assets of the company by policyholders, or policyholders and creditors, in this state in the event of insolvency, receivership, or liquidation of the company. Notwithstanding any other provision of law, the securities eligible for deposit under the insurance laws of this state relating to deposit of securities by an insurance company as a condition of commencing or continuing to do an insurance business in this state may be deposited with a clearing corporation or held in the Federal Reserve book-entry system. Securities deposited with a clearing corporation or held in the Federal Reserve book-entry system and used to meet the deposit requirements under the insurance laws of this state shall be under the control of the Commissioner of Insurance and shall not be withdrawn by the insurance company without the approval of Commissioner of Insurance. Any insurance company holding securities in such manner shall provide to the Commissioner of Insurance evidence issued by its custodian or member bank through which such insurance company has deposited such securities in a clearing corporation or through which such securities are held in the Federal Reserve book-entry system, respectively, in order to establish that the securities are actually recorded in an account in the name of the custodian or other direct participant or member bank, and that the records of the custodian, other participant or member bank reflect that such securities are held subject to the order of the Commissioner of Insurance. In case any insurer which has made a deposit with the Commissioner of Insurance, or other designated official or custodian in this state, of cash or securities in trust for the protection of its policyholders or creditors or both in this state, or of its policyholders or creditors or both in the United States, thereafter becomes merged or consolidated in accordance with the laws of this state if a domestic insurer, or in accordance with the laws of its domiciliary state or nation if a foreign or alien insurer, and upon the effectuation of the merger or consolidation, the resulting corporation is or becomes authorized to do business in this state, the commissioner, or other designated official or custodian, as the case may be, upon the resulting corporation’s being so authorized, shall release and transfer the cash or securities so deposited by the merged or consolidated insurer to the resulting corporation, or to such person as it may designate to take and receive the same. If any insurer which has made such a deposit with the Commissioner of Insurance or other designated official or custodian in the state hereafter withdraws from and ceases to do business in this state, and has paid or provided for the payment of all its obligations and liabilities to its policyholders and creditors in this state by the assumption or reinsurance of the same by an insurer which is or becomes authorized to transact business in this state, the Commissioner of Insurance or other designated official or custodian, as the case may be, shall release and transfer the cash or securities constituting its deposit to such withdrawing insurer, or to such person as it may designate to take and receive the same. Any release or transfer pursuant hereto shall be made upon application to and the written order of the Commissioner of Insurance. Neither the Commissioner of Insurance, nor other designated official or custodian, as the case may be, shall have any liability for the release or transfer of any such deposit made or authorized in good faith.

Miss. Code Ann. § 83-21-5 Deposit required for companies outside United States.

No foreign company, if incorporated or organized under the laws of any government or state elsewhere than in the United States, shall be admitted until it has made a deposit with the treasurer of the state, or with the financial officer of some other states of the United States, of a sum not less than the capital required of like companies under this chapter. Such deposit must be in exclusive trust for the benefit and security of all the company’s policyholders and creditors in the United States, and such deposit shall be deemed for all purposes of the insurance law the capital of the company making it.

Miss. Code Ann. § 83-21-7 Applicable laws.

Foreign insurance companies, upon complying with the conditions applicable to such companies, may be admitted to transact in this state, by constituted agents resident therein, any class of insurance authorized by the laws now or hereafter in force relative to the duties, obligations, prohibitions, and penalties of insurance companies, and shall be subject to all laws applicable to the transaction of such business by foreign insurance companies and their agents. No provision of law which by its terms applies specifically to domestic life insurance companies shall thereby become applicable to foreign life insurance companies; and in the case of life insurance companies, the residence requirement shall not apply to agents who are residents of other states which permit residents of Mississippi to be licensed therein.

Miss. Code Ann. § 83-21-9 License refused on certain conditions.

When an insurance company organized under the laws of any state or country is prohibited by the laws of said state or country or by its charter from investing its assets other than capital stock in the bonds of this state, then and in such case the commissioner of insurance is authorized and directed to refuse to grant a license to transact business in Mississippi to such insurance company.

Miss. Code Ann. § 83-21-11 Repealed.

Repealed by Laws, 1997, ch. 410, § 25, eff from and after July 1, 1997. [Codes, 1906, § 2667; Hemingway’s 1917, § 5133; 1930, § 5169; 1942, § 5679]

Miss. Code Ann. § 83-21-13 Revocation of license for deficiency in capital, surplus, or reserves.

Any company heretofore licensed shall have its financial status reviewed upon the filing of its annual statement, and in the event of a deficiency in either capital, surplus, or reserves, the license of the company and the certificate of authority of its agents to represent said company shall be immediately revoked.

Miss. Code Ann. § 83-21-15 Repealed.

Repealed by Laws, 2001, ch. 510, § 34, eff from and after January 1, 2002. [Codes, 1942, § 5674; Laws, 1942, ch. 271; Laws, 1948, ch. 347; Laws, 1956, ch. 338, §§ 1-10; Laws, 1994, ch. 385, § 1; Laws, 1995, ch. 361, § 2; Laws, 1996, ch. 319, § 1; Laws, 1999, ch. 345, § 1; Laws, 2001, ch. 376, § 1.]

Miss. Code Ann. § 83-21-17 Nonadmitted insurers.

The Commissioner of Insurance shall annually promulgate a list of nonadmitted insurers found eligible for writing business in the State of Mississippi, provided each such insurer qualifies under one (1) of the following paragraphs: Has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which is the greater of: The same requirements as to capital and surplus as is required of a company licensed to do business in the State of Mississippi; or Fifteen Million Dollars ($15,000,000.00). The requirements of paragraph (a) of this subsection may be satisfied by an insurer’s possessing of less than the minimum capital and surplus upon an affirmative finding of acceptability by the commissioner. The finding shall be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the nonadmitted insurer’s capital and surplus is less than Four Million Five Hundred Thousand Dollars ($4,500,000.00). In the case of a Lloyd’s plan or other similar group of insurers, which consists of unincorporated individual insurers, or a combination of both incorporated and unincorporated insurers: The plan or group maintains a trust fund that shall consist of a trusteed account representing the group’s liabilities attributable to business written in the United States; In addition, the group shall establish and maintain in trust a surplus in the amount of One Hundred Million Dollars ($100,000,000.00), which shall be available for the benefit of United States surplus lines policyholders of any member of the group; The incorporated members of the group shall not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of solvency regulation and control by the group’s domiciliary regulator as are the unincorporated members; and The trust funds shall be maintained in an irrevocable trust account in the United States in a qualified financial institution, consisting of cash, securities, letters of credit or investments of substantially the same character and quality as those which are eligible investments for the capital and statutory reserves of admitted insurers to write like kinds of insurance in this state and, in addition, the trust required by subparagraph (ii) of this paragraph shall satisfy the requirements of the Standard Trust Agreement required for listing with the National Association of Insurance Commissioners’ (NAIC) International Insurers Department. In the case of a group of incorporated insurers under common administration, which has continuously transacted an insurance business outside the United States for at least three (3) years immediately prior to this time, and which submits to this state’s authority to examine its books and records and bears the expense of the examination: The group shall maintain an aggregate policyholders’ surplus of Ten Billion Dollars ($10,000,000,000.00); and The group shall maintain in trust a surplus in the amount of One Hundred Million Dollars ($100,000,000.00), which shall be available for the benefit of United States surplus lines policyholders of any member of the group; and Each insurer shall individually maintain capital and surplus of not less than Twenty-five Million Dollars ($25,000,000.00) per company; and The trust funds shall satisfy the requirements of the Standard Trust Agreement requirement for listing with the NAIC’s International Insurers Department, and shall be maintained in an irrevocable trust account in the United States in a qualified financial institution, and shall consist of cash, securities, letters of credit or investments of substantially the same character and quality as those which are eligible investments for the capital and statutory reserves of admitted insurers to write like kinds of insurance in this state; and Additionally, each member of the group shall make available to the commissioner an annual certification of the member’s solvency by the member’s domiciliary regulator and its independent public accountant. Except for a plan complying with paragraphs (c) or (d) of this subsection, an insurer not domiciled in one (1) of the United States or its territories shall satisfy the capital and surplus requirements of paragraph (a) and shall have in force a trust fund of not less than the greater of: Five Million Four Hundred Thousand Dollars ($5,400,000.00); or Thirty percent (30%) of the United States surplus lines gross liabilities, excluding aviation, wet marine and transportation insurance liabilities, not to exceed Sixty Million Dollars ($60,000,000.00) to be determined annually on the basis of accounting practices and procedures substantially equivalent to those promulgated by this state, as of December 31 next preceding the date of determination, where: 1. The liabilities are maintained in an irrevocable trust account in the United States in a qualified financial institution, on behalf of United States policyholders consisting of cash, securities, letters of credit or other investments of substantially the same character and quality as those which are eligible investments under Section 83-19-51 for the capital and statutory reserves of admitted insurers to write like kinds of insurance in this state. The trust fund, which shall be included in any calculation of capital and surplus or its equivalent, shall satisfy the requirements of the Standard Trust Agreement required for listing with the NAIC’s International Insurers Department; and 2. The insurer may request approval from the commissioner to use the trust fund to pay valid surplus lines claims; provided, however, that the balance of the trust fund is never less than the greater of Five Million Four Hundred Thousand Dollars ($5,400,000.00) or thirty percent (30%) of the insurer’s current gross United States surplus lines liabilities, excluding aviation, wet marine and transportation insurance liabilities; and 3. In calculating the trust fund amount required by this subsection, credit shall be given for surplus lines deposits separately required and maintained for a particular state or United States territory, not to exceed the amount of the insurer’s loss and loss adjustment reserves in the particular state or territory. An insurer or group of insurers meeting the requirements to do a surplus lines business in this state on March 11, 2011, shall have two (2) years from March 11, 2011, to meet the requirements of paragraph (e) of this subsection as follows: Click to view The commissioner shall have the authority to adjust, in response to inflation, the trust fund amounts required by paragraph (e) of this subsection. An alien insurer shall be listed with the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the National Association of Insurance Commissioners. The Commissioner of Insurance is specifically vested with authority to promulgate such rules and regulations as deemed necessary to carry out the provisions hereof. The commissioner shall publish a list of nonadmitted insurers found eligible for writing business in the State of Mississippi on a nonadmitted basis. The commissioner may, by giving seven (7) days’ notice, at any time remove a nonadmitted insurer from such eligible list when it appears that such insurer no longer meets the requirements of the statute or regulations of the commissioner. When a nonadmitted insurer is placed upon or removed from the eligible list, all surplus lines insurance producers holding licenses under Sections 83-21-17 through 83-21-31 shall be notified of such eligibility or removal. Each nonadmitted insurer shall annually pay a filing fee of Five Hundred Dollars ($500.00) in order to be eligible for certification as a nonadmitted insurer. Each insured in this state who directly procures or renews insurance with a nonadmitted insurer on properties, risks or exposures located or to be performed, in whole or in part, in this state, other than insurance procured through a surplus lines licensee, shall, within thirty (30) days after the date the insurance was so procured or renewed, file a written report with the commissioner, upon forms prescribed by the commissioner, showing the name and address of the insured or insureds, name and address of the insurer, the subject of the insurance, a general description of the coverage, the amount of premium currently charged, and additional pertinent information reasonably requested by the commissioner. Gross premiums charged for the independently procured insurance, less any return premiums, are subject to the same premium tax rate as set forth in Section 83-21-25. At the time of filing the report required in paragraph (a) of this subsection (5), the insured shall pay the tax to the commissioner. Year Following March 11, 2011 Trust Fund Requirement 1 Fifteen percent (15%) of U.S. surplus lines liabilities, excluding aviation, wet marine and transportation insurance, with a maximum of Thirty Million Dollars 2 Thirty percent (30%) of U.S. surplus lines liabilities, excluding aviation, wet marine and transportation insurance, with a maximum of Sixty Million Dollars ($60,000,000.00)

Miss. Code Ann. § 83-21-18 Agreements with other states to establish procedures for allocation of premium taxes; definitions.

The Commissioner of Insurance may enter into an agreement, compact, or otherwise establish procedures to allocate among the states the premium taxes paid to an insured’s home state according to the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA), which was incorporated intact into the Dodd-Frank Financial Reform Bill, H.R. 4173, which provides that only an insured’s “home state” may require a premium tax payment for nonadmitted insurance, and that the placement of all nonadmitted insurance shall be subject solely to the statutory and regulatory requirements imposed by the insured’s “home state.” The agreement, compact, or procedures may provide for the adoption of nationwide uniform requirements, forms and procedures which provide for the reporting, payment, collection and allocation of premium taxes for nonadmitted insurance consistent with the NRRA. This agreement may allow the commissioner to collect and disburse to reciprocal states any funds collected under a policy that may be allocated to another reciprocal state where the insurance covers properties, risks or exposures located or to be performed both in and out of this state. The sum payable may include the amount of gross premiums and fees allocated to this state, plus an amount equal to the portion of premium and fees allocated to other states or territories, on the basis of the tax rates and fees applicable to properties, risks or exposures located or to be performed outside of this state. To the extent that other states where portions of the properties, risks or exposures reside have failed to enter into a compact or reciprocal allocation procedures with this state, the net premium tax may be retained by this state. The commissioner is authorized to enter into a cooperative agreement or interstate agreement or compact to establish additional and alternative nationwide uniform eligibility requirements that shall be applicable to nonadmitted insurers domiciled in another state or territory of the United States. For the purposes of this chapter, the following definitions shall apply: “Home state” means: 1. The state in which an insured maintains its principal place of business or, in the case of an individual, the individual’s principal residence; or 2. If one hundred percent (100%) of the insured risk is located outside the state referred to in item 1 of this subparagraph (i), the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated. In general, except as provided in subparagraph (ii), the term “home state” means, with respect to an insured: If more than one (1) insured from an affiliated group are named insureds on a single nonadmitted insurance contract, the term “home state” means the home state, as determined according to subparagraph (i)1 of this paragraph (a), of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract. “Independently procured insurance” means any property and casualty insurance permitted in a state to be placed directly with a nonadmitted insurer eligible to accept such business. “Multistate risk” means a risk covered by a nonadmitted insurer with insured exposures in more than one (1) state. “Nonadmitted insurance” means any property and casualty insurance permitted in a state to be placed directly or through a surplus lines insurance producer with a nonadmitted insurer eligible to accept such insurance. “Principal place of business” means, with respect to determining the home state of the insured, the state where the insured maintains its headquarters and where the insured’s high-level officers direct, control and coordinate the business activities. “Principal residence” means, with respect to determining the home state of the individual, the state where the individual resides for the greatest number of days during a calendar year. “Single-state risk” means a risk covered by a nonadmitted insurer with insured exposures in only one (1) state. “Surplus lines insurance” means any property and casualty insurance permitted in a state to be placed through a surplus lines insurance producer with a nonadmitted insurer eligible to accept such insurance. “Surplus lines insurance producer” means an individual who is licensed in this state to sell, solicit or negotiate insurance on properties, risks or exposures located or to be performed in this state with nonadmitted insurers. The provisions set forth in Sections 83-21-19 through 83-21-27 shall only apply if Mississippi is the home state as defined herein.

Miss. Code Ann. § 83-21-19 Resident and nonresident surplus lines insurance producers; licensing; fees; suspension, revocation or refusal of license; grounds; notice; hearing.

Surplus lines insurance may be placed by a surplus lines insurance producer if: Each insurer is an eligible surplus lines insurer; Each insurer is authorized to write the line of insurance in its domiciliary jurisdiction; and All other requirements as set forth by law are met. The Commissioner of Insurance, upon the biennial payment of a fee of One Hundred Dollars ($100.00) and submission of a completed license application on a form approved by the commissioner, may issue a surplus lines insurance producer license to a qualified holder of an insurance producer license with a property, casualty and/or personal lines line of authority, who is regularly commissioned to represent a fire and casualty insurance company licensed to do business in the state. The privilege license shall continue from the date of issuance until the last day of the month of the licensee’s birthday in the second year following issuance or renewal of the license, with a minimum term of twelve (12) months. A nonresident person shall receive a surplus lines insurance producer license if: The person is currently licensed as a surplus lines insurance producer or equivalent and in good standing in his or her home state; The person has submitted the proper request for licensure and has paid the biennial fee of One Hundred Dollars ($100.00); and The person’s home state awards nonresident surplus lines licenses to residents of this state on the same basis. The commissioner may verify a person’s licensing status through the National Producer Database maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries. A nonresident surplus lines insurance producer licensee who moves from one (1) state to another state, or a resident surplus lines licensee who moves from this state to another state, shall file a change of address and provide certification from the new resident state within thirty (30) days of the change of legal residence. No fee or license application is required. The commissioner may deny, suspend, revoke or refuse the license of a surplus lines insurance producer licensee and/or levy a civil penalty in an amount not to exceed Two Thousand Five Hundred Dollars ($2,500.00) per violation, after notice and hearing as provided hereunder, for one or more of the following grounds: Providing incorrect, misleading, incomplete or materially untrue information in the license application; Violating any insurance laws, or violating any regulation, subpoena or order of the commissioner or of another state’s commissioner; Obtaining or attempting to obtain a license through misrepresentation or fraud; Improperly withholding, misappropriating or converting any monies or properties received in the course of doing the business of insurance; Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance; Having been convicted of a felony; Having admitted or been found to have committed any insurance unfair trade practice or fraud; Using fraudulent, coercive or dishonest practices or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere; Having an insurance producer license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory; Forging another’s name to an application for insurance or to any document related to an insurance transaction; Improperly using notes or any other reference material to complete an examination for an insurance license; Knowingly accepting insurance business from an individual who is not licensed; Failing to comply with an administrative or court order imposing a child support obligation; or Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax. If the action by the commissioner is to nonrenew, suspend, revoke or to deny an application for a license, the commissioner shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant’s or licensee’s license. The applicant or licensee may make written demand upon the commissioner within ten (10) days for a hearing before the commissioner to determine the reasonableness of the commissioner’s action. The hearing shall be held within thirty (30) days. Every surplus lines insurance contract procured and delivered according to Sections 83-21-17 through 83-21-31 shall have stamped upon it in bold ten-point type, and bear the name of the surplus lines insurance producer who procured it, the following: “NOTE: This insurance policy is issued pursuant to Mississippi law covering surplus lines insurance. The company issuing the policy is not licensed by the State of Mississippi, but is authorized to do business in Mississippi as a nonadmitted company. The policy is not protected by the Mississippi Insurance Guaranty Association in the event of the insurer’s insolvency.” No diminution of the license fee herein provided shall occur as to any license effective after January 1 of any year.

Miss. Code Ann. § 83-21-21 Surplus lines policies.

The Commissioner of Insurance may establish a stamping procedure for all eligible nonadmitted/surplus lines insurance policies sold on risks subject to the payment of premium taxes to the State of Mississippi. The Commissioner of Insurance may rely upon the advice and assistance of a duly constituted association of surplus lines insurance producers in carrying out the purposes of this chapter, if the association files with the commissioner: A copy of the association’s constitution and articles of agreement of association or the association’s certificate of incorporation and bylaws and any rules and regulations governing the association’s activities; A list of the association’s members; and The name and address of a resident of this state upon whom notices or orders of the commissioner or process issued by the commissioner may be served. The Commissioner of Insurance may examine the association’s records concerning the functions or duties performed on behalf of the commissioner by the association. The association shall provide a means for the examination of all surplus lines coverages written to determine whether such coverages comply with the law and such rules or regulations as may be issued by the Commissioner of Insurance. The Commissioner of Insurance may refuse to accept, or may suspend or revoke the acceptance of, an association for any of the following reasons: It reasonably appears that the association will not be able to carry out the purposes of this chapter; The association does not maintain and enforce rules and regulations which will ensure that members of the association and persons associated with those members will comply with this chapter, other applicable state law or rules or regulations promulgated under either; The rules or regulations of the association do not ensure a fair representation of its members in the selection of directors and in the administration of its affairs; The rules or regulations of the association do not provide for an equitable allocation of reasonable dues, fees and other charges among members; The rules or regulations of the association impose an undue burden on competition; or The association fails to meet other applicable requirements prescribed in this chapter. A surplus lines insurance producer shall cooperate with the association and the Commissioner of Insurance in fulfilling the surplus lines agent’s statutory responsibility under this chapter. Upon request from the association, the Commissioner of Insurance may approve the levy of an examination fee of not more than one percent (1%) of premiums charged under this chapter for the operation of the association to the extent that such operation relieves the commissioner of duties otherwise required of the Commissioner of Insurance under this chapter. The association may revoke the membership of, and the Commissioner of Insurance may revoke the license in this state of, any licensee who fails to pay the examination fee when due, if the examination fee has been approved by the Commissioner of Insurance. The fees levied and collected by the association pursuant to this section shall be subject to transfer to the Department of Insurance Special Fund by act of the Legislature. The association, the association’s board members and employees shall not be subject to liability for any functions or duties performed in good faith, from and after May 9, 2008, by the association pursuant to this chapter. In the alternative, the Commissioner of Insurance may contract with a third party to assist the commissioner with carrying out the purposes of this chapter. The third party may collect an examination fee in an amount determined by the commissioner but not more than one percent (1%) of premiums charged under this chapter. The fees shall be collected and deposited into the Department of Insurance Special Fund, and from this fund the department may pay the third party a reasonable fee for its services. Notwithstanding the provisions of Section 83-21-18(3), any stamping procedure established under this section may apply to the reporting, payment, collection and allocation of premium taxes for nonadmitted insurance consistent with any agreement, compact or procedures entered into by the commissioner under Section 83-21-18(1). The commissioner may promulgate rules and regulations necessary for the implementation of this section.

Miss. Code Ann. § 83-21-23 Surplus lines insurance producer required to execute and retain form setting forth certain facts; promulgation of rules and regulations and establishment of fees; exemption of certain surplus lines insurance producers from requirement to make due diligence search to determine availability of full amount or type of insurance from admitted insurers under certain circumstances.

When any policy of personal lines insurance is procured under the authority of such license, the surplus lines insurance producer shall furnish to the insured at the time of policy deliverance an informational notice as promulgated by the commissioner. The informational notice shall address the following: The insurance procured may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; In the event of an insolvency of the surplus lines insurer, losses shall not be paid by the Mississippi Insurance Guaranty Association; The coverage has been procured through a duly licensed nonadmitted insurance producer; and Any other information the commissioner believes should be disclosed to the insured. The Commissioner of Insurance may promulgate rules and regulations and establish appropriate fees for the implementation of Sections 83-21-17 through 83-21-31.

Miss. Code Ann. § 83-21-25 Report of surplus lines insurance producer; “gross premiums”; designation of procuring surplus lines insurance producer to make report and payment; exemption from payment of surplus line premium tax on certain property risk.

The surplus lines insurance producer shall report under oath to the Commissioner of Insurance, within thirty (30) days from the first of January and July of each year, the amount of gross premiums received by him for such insurance in nonadmitted insurers, and shall pay to the Commissioner of Insurance a tax of four percent (4%) thereon. The term “gross premiums” shall mean the total gross amount of premiums received on each and every surplus lines insurance contract, less returned premiums. In default of the payment of any sum which may be due the state under this law, the Commissioner of Insurance may sue for the same. The surplus lines insurance producer shall keep a separate record of all transactions, as herein provided, open at all times to the inspection of the Commissioner of Insurance. The surplus lines insurance producer may designate another surplus lines insurance producer that actually procured the insurance from the nonadmitted insurer to report and pay, on behalf of the surplus lines insurance producer, to the Commissioner of Insurance the tax due the state under this law. The surplus lines insurance producer designated to pay the tax shall be deemed to have the same obligations and responsibilities for reporting and paying the tax due the state on the insurance procured from the nonadmitted insurer as the surplus lines insurance producer who was initially responsible for reporting and paying the tax, and the Commissioner of Insurance may sue such surplus lines insurance producer designated to pay the tax in the event such surplus lines insurance producer is in default of any sum which is due the state for which the designated surplus lines insurance producer is responsible or obligated to pay. [Repealed].

Miss. Code Ann. § 83-21-27 Permissible acts of surplus lines insurance producers.

Nothing contained in Sections 83-21-17 through 83-21-31 shall authorize any person, firm, association, or corporation to guarantee or otherwise validate or secure the performance or legality of any agreement, instrument, or policy of insurance of any nonadmitted insurer, nor to permit or authorize any nonadmitted insurer to do any insurance business by or through any person or surplus lines insurance producer acting within this state; but surplus lines insurance producers licensed hereunder acting pursuant to the cited sections may issue and deliver to their clients, the insured, binders, policies, and other confirmation of direct insurance so lawfully placed, and shall not be personally liable to the holder of any policy of insurance so issued or delivered for any loss covered thereby.

Miss. Code Ann. § 83-21-29 Suits against nonadmitted insurers.

A nonadmitted insurer may be sued upon any cause of action arising in this state under any contract issued by it as hereinabove authorized, in a court of competent jurisdiction in any county in which the plaintiff may reside, or in which the cause of action arose. Any such policy or contract shall contain a provision authorizing service of citation or other legal process upon a person or firm whose name and address shall be set out therein, which said person, or at least one (1) member of a firm, shall be a resident of Mississippi. In lieu thereof any such policy or contract shall contain a provision authorizing service of citation or other legal process upon the Commissioner of Insurance, designating the person to whom said Commissioner of Insurance shall mail citation or other legal process. In the event service of legal process against a nonadmitted insurer is made by service upon the Commissioner of Insurance, he shall forthwith mail citation or other document or process required to the person designated by the nonadmitted insurer in the policy for the purpose by registered mail or certified mail with return receipt requested. In the event of service of citation or other legal process upon the Commissioner of Insurance, the nonadmitted insurer shall have thirty (30) days from date of service upon said Commissioner of Insurance within which to plead, answer, or otherwise defend the action. Upon service of process upon the Insurance Commissioner in accordance with this law, or upon the person or firm designated in the policy or contract in accordance with this law, or as provided for by the Mississippi Rules of Civil Procedure, the court shall be deemed to have jurisdiction in personam of the nonadmitted insurer. A nonadmitted insurer issuing such insurance policy or contract shall be deemed thereby to have authorized service of process upon it in the manner and effect as provided in Sections 83-21-17 through 83-21-31, and as provided in the Mississippi Rules of Civil Procedure.

Miss. Code Ann. § 83-21-31 Application of preceding and succeeding sections.

As to any policy or contract issued pursuant to Sections 83-21-17 through 83-21-31, and as to any claim for loss or damage arising under any such policy or contract, the cited sections shall apply. As to any such policy or contract issued by an unauthorized insurer in a manner not provided in said preceding sections, Sections 83-21-33 through 83-21-51 shall apply.

Miss. Code Ann. § 83-21-35 Service of process upon unauthorized insurers.

The purpose of Sections 83-21-33 through 83-21-51 is to subject certain insurers to the jurisdiction of courts of this state in suits by or on behalf of insureds or beneficiaries under insurance contracts. The legislature declares that it is a subject of concern that many residents of this state hold policies of insurance issued or delivered them in this state by insurers not authorized to do business in this state, thus presenting to such residents the often insuperable obstacle of resorting to distant forums for the purpose of asserting legal rights under such policies. In furtherance of such state interests, the legislature herein provides a method of substituted service of process upon such insurers, declares that in so doing it exercises its power to protect its residents and to define, for the purpose of the cited sections, what constitutes doing business in this state, and also exercises powers and privileges available to the state by virtue of Public Law 15, 79th Congress of the United States, Chapter 20, first session, Section 340, as amended, which declares that the business of insurance and every person engaged therein shall be subject to the laws of the several states.

Miss. Code Ann. § 83-21-37 Acts constituting commissioner as agent.

Any of the following acts in this state, effected by mail or otherwise, by an unauthorized or alien insurer: (1) the issuance or delivery of contracts of insurance to residents of this state or to corporations authorized to do business therein, (2) the solicitation of applications for such contracts, (3) the collection of premiums, membership fees, assessments, or other considerations for such contracts, or (4) any other transaction of insurance business is equivalent to and shall constitute an appointment by such insurer of the commissioner of insurance and his successor or successors in office to be its true and lawful agent, upon whom may be served all lawful process in any action, suit, or proceeding instituted by or on behalf of an insured or beneficiary arising out of any such contract of insurance, and any such act shall be signification of its agreement that such service of process is of the same legal force and validity as personal service of process in this state upon such insurer.

Miss. Code Ann. § 83-21-39 Method of service.

Such service of process shall be made by delivering to and leaving with the commissioner of insurance, or some person in apparent charge of his office, two (2) copies thereof and the payment to him of such fees as may be prescribed by law. The commissioner of insurance shall forthwith mail by registered mail or certified mail one of the copies of such process to the defendant at its last known principal place of business, and shall keep a record of all process so served upon him. Such service of process is sufficient, provided notice of such service and a copy of the process are sent within ten (10) days thereafter by registered mail or certified mail by plaintiff or plaintiff’s attorney to the defendant at its last known principal place of business, and the defendant’s receipt, or receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and the affidavit of the plaintiff or plaintiff’s attorney showing a compliance herewith are filed with the clerk of the court in which such action is pending on or before the date the defendant is required to appear, or within such further time as the court may allow.

Miss. Code Ann. § 83-21-41 Personal service on agent or representative.

Service of process in any such action, suit or proceeding shall, in addition to the manner provided in Section 83-21-39, be valid if served upon any person within the state who, in this state on behalf of such insurer, is (1) soliciting insurance, or (2) making, issuing or delivering any contract or insurance, or (3) collecting or receiving any premium, membership fee, assessment, or other consideration for insurance; and a copy of such process is sent within ten (10) days thereafter by registered mail or certified mail by the plaintiff or plaintiff’s attorney to the defendant at the last known principal place of business of the defendant, and the defendant’s receipt, or the receipt issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and the affidavit of the plaintiff or plaintiff’s attorney showing a compliance herewith are filed with the clerk of the court in which such action is pending on or before the date the defendant is required to appear, or within such further time as the court may allow. Nothing in Sections 83-21-33 through 83-21-51 shall limit or abridge the right to serve any process, notice, or demand upon any insurer in any other manner now or hereafter permitted by law or the Mississippi Rules of Civil Procedure.

Miss. Code Ann. § 83-21-43 Time allowed before judgment.

No plaintiff or complainant shall be entitled to a judgment by default, or a judgment with leave to prove damages, or a judgment pro confesso under Sections 83-21-33 through 83-21-51, until the expiration of thirty (30) days from the date of the filing of the affidavit of compliance.

Miss. Code Ann. § 83-21-45 Defense of action by unauthorized insurer.

Before any unauthorized insurer shall file or cause to be filed any pleading in any action, suit, or proceeding instituted against it, such unauthorized insurer shall either (1) deposit cash or securities with the clerk of the court in which such action, suit, or proceeding is pending, or file with such clerk a bond with good and sufficient sureties, to be approved by the court, in an amount to be fixed by the court sufficient to secure the payment of any final judgment which may be rendered in such actions; or (2) procure a certificate of authority to transact the business of insurance in this state.

Miss. Code Ann. § 83-21-47 Discretionary continuances.

The court, in any action, suit, or proceeding in which service is made in the manner provided in Sections 83-21-33 through 83-21-51, may, in its discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of Section 83-21-45 and to defend such action.

Miss. Code Ann. § 83-21-49 Motions to quash or set aside service.

Nothing in Sections 83-21-33 through 83-21-51 is to be construed to prevent an unauthorized foreign or alien insurer from filing a motion to quash a writ, or to set aside service thereof made in the manner provided herein, on the ground either (1) that such unauthorized insurer has not done any of the acts enumerated in Section 83-21-37, or (2) that the person on whom service was made pursuant to Section 83-21-41 was not doing any of the acts therein enumerated.

Miss. Code Ann. § 83-21-51 Attorney fees.

In any action against an unauthorized foreign or alien insurer upon a contract of insurance issued or delivered in this state to a resident thereof or to a corporation authorized to do business therein, if the insurer has failed for thirty (30) days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that such refusal was vexatious and without reasonable cause, the court may allow to the plaintiff a reasonable attorney fee and include such fee in any judgment that may be rendered in such action. Such fee shall not exceed twenty-five percent (25%) of the amount which the court or jury finds that the plaintiff is entitled to recover against the insurer, but in no event shall such fee be less than Twenty-five Dollars ($25.00). Failure of an insurer to defend any such action shall be deemed prima facie evidence that its failure to make payment was vexatious and without reasonable cause.
Source: Public.Resource.Org MS CodeURL: https://unicourt.github.io/cic-code-ms/transforms/ms/ocms/r78/gov.ms.code.title.83.htmlFetched: 6/10/2026

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