MCA Chapter 49

in effect

Miss. Code Ann. § 83-49-1 Purposes and construction of chapter.

The purposes of this chapter are to provide for legal expense insurance by the registration of prepaid legal services plans, to promote access to quality legal services at the lowest possible price, and to regulate the development and operation of prepaid legal services plans, and it is the intent of this legislature that this chapter be interpreted as liberally as necessary to accomplish these purposes.

Miss. Code Ann. § 83-49-3 Persons to whom chapter applies.

The provisions of this chapter shall apply to all persons, groups, fraternal or benevolent organizations, including, but not limited to, insurers, corporations, partnerships, trusts, labor, craft or other unions, or any other entities who propose to operate or are operating or participating in the operation of a prepaid legal services plan as such a plan is hereinafter defined.

Miss. Code Ann. § 83-49-5 Definitions.

In this chapter, the following terms shall have the following meanings: “Sponsor” means any insurer, as defined in this section, or any other corporation organized for the exclusive purpose of establishing and operating prepaid legal services plans. “Prepaid legal services plan” or “plan” means any arrangement whereby responsibility is undertaken to provide or arrange for, or to pay for or reimburse any part of the cost of, any legal services for a consideration consisting in part of prepaid or periodic charges or dues; but the provisions of this chapter shall not apply to the benefits available under automobile club membership contracts and automobile liability insurance policies which supply limited legal services or reimbursement for legal services in automobile-related matters under certificates of authority issued by the Insurance Commissioner, or to any legal aid or other legal services program for the indigent, or to limited legal services supplied by professional education associations to their members, or to any employer-employee legal services plan which is excluded from the provisions of this chapter by the provisions of the Federal Employee Retirement Income Security Act of 1974, or any amendments thereto. “Legal services” means any services normally provided by an attorney, as well as the payment of court costs and related expenses incurred in the exercise of any right; but not including the payment of fines, penalties, judgments or assessments. “Legal services” shall not include any service provided by an attorney in regard to a tort action. “Advertising” means any communication, other than a solicitation, as hereinafter defined, to the public or any segment thereof by means of radio, television, newspaper, magazine, periodical, brochure, pamphlet, circular, or any other means, the apparent purpose or reasonable effect of which would be to convey information purporting to relate to or describe legal rights, legal services, attorneys or prepaid legal services plans. “Solicitation” means any communication, written or oral, in person, or by means of telephone, radio, television, newspaper, magazine, periodical, brochure, circular, or otherwise, of any offer of coverage in a prepaid legal services plan, or invitation, or request to enroll in a prepaid legal services plan, or attempt to obtain consideration for the coverage of a prepaid legal services plan, or any other device, the apparent purpose or reasonable effect of which would be to induce the recipient thereof to enroll in, or pay any consideration for the coverage provided by, a prepaid legal services plan. “Commissioner” means the Insurance Commissioner of the State of Mississippi. “Subscriber” means any person who has been enrolled in a prepaid legal services plan and is entitled to receive the benefits provided in the plan. “Subscription contract” means any contract signed by an authorized representative of a prepaid legal services plan and an individual or an authorized representative of his group or employer or labor union or other entity with which he is affiliated, under which the individual becomes a subscriber to the plan. “Insurer,” as defined in this chapter means an insurer licensed to transact life or casualty insurance in this state.

Miss. Code Ann. § 83-49-7 License required for sponsor other than insurer; fee; disclosure of business relationships; denial of license.

No person other than an insurer as defined herein shall act as a sponsor nor enter into any contract with an individual person or persons whereby such person or persons become subscribers to a prepaid legal services plan without first having obtained a license from the commissioner to act as sponsor of prepaid legal services in this state. The annual license fee shall be One Hundred Fifty Dollars ($150.00). The fee for said license shall be paid to the commissioner for the use of the state on or before March 1 of each year. Before any licensee changes his address, he shall return his license to the commissioner who shall endorse the license indicating the change. The person to whom the license or the renewal thereof may be issued shall file sworn answers, subject to the penalties of perjury, to such interrogatories as the commissioner may require. The commissioner shall have authority, at any time, to require the applicant to disclose fully the identity of all stockholders, partners, officers and employees, and he may, in his discretion, refuse to issue or renew a license in the name of any firm, partnership or corporation if he is not satisfied that any officer, employee, stockholder or partner thereof who may materially influence the applicant’s conduct meets the standards of this chapter.

Miss. Code Ann. § 83-49-9 Investigation of sponsor license applicants; qualifications for license; notice of denial; hearing.

Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and shall issue a license if he finds the applicant is qualified in accordance with this chapter. If the commissioner does not so find, he shall, within ninety (90) days after he has received such application, so notify the applicant and, at the request of the applicant, give the applicant a full hearing. The commissioner shall issue or renew a license as may be applied for when he is satisfied that the person to be licensed: Is competent and trustworthy and intends to act in good faith as a sponsor of prepaid legal services plans in this state; Has a good business reputation and has had experience, training or education so as to be qualified to act as a sponsor of prepaid legal services plans; and If a corporation is incorporated under the laws of this state or a foreign corporation authorized to transact business in this state.

Miss. Code Ann. § 83-49-11 Revocation, suspension or refusal to renew sponsor’s or representative’s license; grounds; procedure; alternative penalties; subsequent application; review.

The commissioner may revoke or suspend or refuse to renew the license of any sponsor or representative of such sponsor when and if after investigation the commissioner finds that: Any license issued to such sponsor or representative of such sponsor was obtained by fraud; There was any misrepresentation in the application for the license; The sponsor or representative of such sponsor has otherwise shown itself untrustworthy or incompetent to act as a sponsor or representative of such sponsor; Such sponsor or representative of such sponsor has violated any of the provisions of this chapter or of the rules and regulations of the commissioner; The sponsor or representative of such sponsor has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any moneys entrusted to the sponsor or representative of such sponsor in its fiduciary capacity belonging to an insurer or insured; The sponsor or representative of such sponsor is found to be in an unsound condition or in such condition as to render the future transaction of business in this state hazardous to the public; or The sponsor or representative of such sponsor is found guilty of fraudulent, deceptive, unfair or dishonest practices as defined in Section 83-5-35 or 83-5-45, Mississippi Code of 1972, or has been convicted of a felony. Before any license shall be refused, suspended, revoked or the renewal thereof refused hereunder, the commissioner shall give notice of his intention so to do, by certified mail, return receipt requested, to the applicant for or holder of such license and to any sponsor whom such representative represents or who desires that he be licensed, and shall set a date not less than twenty (20) days from the date of mailing such notice when the applicant or licensee and a duly authorized representative of the sponsor may appear to be heard and produce evidence. In the conduct of such hearing, the commissioner or any regular salaried employee specially designated by him for such purposes shall have power to administer oaths, to require the appearance of and examine any person under oath, and to require the production of books, records or papers relevant to the inquiry upon his own initiative or upon the request of the applicant or licensee. Upon the termination of such hearing, findings shall be reduced to writing and, upon approval by the commissioner, shall be filed in his office; and notice of the findings shall be sent by certified mail to the applicant or licensee and the sponsor concerned. No licensee whose license has been revoked hereunder shall be entitled to file another application for a license as a sponsor or a representative of any sponsor within one (1) year from the effective date of such revocation. Such application, when filed, may be refused by the commissioner unless the applicant shows good cause why the revocation of his license shall not be deemed a bar to the issuance of a new license. In lieu of revoking, suspending or refusing to renew the license for any of the causes enumerated in this section, after hearing as herein provided, the commissioner may place the sponsor on probation for a period of time not to exceed one (1) year, or may fine such sponsor not more than One Thousand Dollars ($1,000.00) for each offense, or both, when in his judgment he finds that the public interest would not be harmed by the continued operation of the sponsor. The amount of any such penalty shall be paid by such sponsor to the commissioner for the use of the state. At any hearing provided by this section, the commissioner shall have authority to administer oaths to witnesses. Anyone testifying falsely, after having been administered such oath, shall be subject to the penalty of perjury. Any action of the commissioner taken pursuant to the provisions of this section shall be subject to review as may be provided in Section 83-17-125.

Miss. Code Ann. § 83-49-13 Subscription contract; required contents; referrals to attorneys; filing and approval of contracts.

Any sponsor of any prepaid legal services plan, or authorized representative thereof, may enter into a subscription contract with any person, or with any person’s employer, or with any other person or group acting in his or its behalf; provided, however, that: No such subscription contract shall be written for a period longer than three (3) years; and In the case of subscription contracts issued to groups, no member of the group shall be bound by the subscription contract unless he indicates in writing to the group no earlier than ten (10) days after the date on which he has received effective notice of the terms and benefits of the plan and the intention of his group to contract for such plan that he does wish to become a subscriber and to be bound by the subscription contract. The notice received by such member shall contain, without limitation, the provisions itemized in subsection (2) hereinbelow. Every subscription contract shall be in writing and shall contain the following provisions: A brief statement of the plan’s financial structure, including a statement of the amount of any premiums, charges or dues to be charged or currently being charged and the manner in which such amount is to be paid; A statement of the amount of benefits, reimbursement or indemnity to be furnished to each subscriber, and the period during which it will be furnished; and, if there are exceptions, reductions, exclusions, limitations or restrictions of such benefits reimbursement or indemnity, a detailed statement of such exceptions, reductions, exclusions, limitations or restrictions; A statement of the terms and conditions upon which the subscription contract may be cancelled or otherwise terminated by the sponsor or by the subscriber or by his employer or by his group. Provided, that any such cancellation or termination by the sponsor shall not become effective unless accomplished in accordance with the provisions of Sections 83-11-5, 83-11-9, 83-11-13, 83-11-15, 83-11-17, 83-11-19 and 83-11-21; A statement describing the applicability or nonapplicability of the benefits of the plan to the family dependents of the subscriber; A statement of the period of grace which will be allowed the subscriber or his employer or group for making any payment due under the subscription contract, which period shall not be less than twenty (20) days; A statement describing a procedure for settling disputes between or among the sponsor, participating or staff attorneys, and the subscribers; A statement that the subscription contract includes the endorsements thereon and attached papers, if any, and contains the entire contract; and A statement that no statements by the subscriber or his employee or group in the application for the contract shall void the subscription contract or be used in any legal proceeding thereunder, unless such application or an exact copy thereof is included in or attached to such subscription contract. A sponsor may provide a benefit plan which would provide only a telephone service for advice or consultation. Such telephone service shall not recommend a particular attorney to the subscriber. A sponsor may provide a benefit plan which would provide legal service including telephone advice or consultation which may recommend an attorney to the subscriber. Every subscriber shall be furnished a copy of his subscription contract, and every employer or other group shall be furnished a copy of the subscription contract signed by it. The sponsor shall be required to file a “specimen” copy of each subscription contract it uses, and a copy of its underwriting rules with the commissioner and a copy thereof shall also be sent to the Mississippi Bar by the sponsor. Such filings shall be approved by the commissioner before being used, however, such filings with the commissioner shall be deemed approved ninety (90) days after the date such filing is received by the commissioner, unless, prior to the expiration of said ninety-day period, the commissioner notified the sponsor of the prepaid legal services plan in writing of the commissioner’s disapproval. The commissioner shall require that all such subscription contracts shall be fair and reasonable, and shall not approve any subscription contracts or underwriting rules that are unfair or inequitable or contrary to the public policy of this state, or would, because such provisions are unclear or deceptively worded or encourage misrepresentation.

Miss. Code Ann. § 83-49-15 Contracts for additional insurance or administrative services; approval.

The sponsor of any prepaid legal services plan, or authorized representative thereof, may contract with any company licensed to transact life or casualty insurance in this state, under which contracts such company agrees, for a consideration consisting of a specified premium to assume the monetary obligations of the plan to provide or pay for the legal services covered by the subscription contracts issued under such plan, upon the failure of the plan itself to meet such obligations within a specified period. The duration of such contracts shall not be longer than three (3) years, and every such contract shall be filed with and subject to the approval of the commissioner for the fairness of its terms and premiums. The contracts shall be deemed approved ninety (90) days after date of filing with the commissioner, unless, prior to the expiration of such ninety-day period, the commissioner notifies the sponsor of the prepaid legal services plan in writing of the commissioner’s disapproval. Any sponsor entering into such contracts shall fairly disclose to all subscribers affected by them the nature and extent of the extra protection provided by them. Any plan having lawful access to any other source of funds besides the premiums collected, which may be used to meet the obligations of the plan under its subscription contracts, shall make similar fair disclosure to affected subscribers. Any sponsor of any prepaid legal services plan, or authorized representative thereof, may contract with any person to provide administrative services necessary to the administration of the plan and the subscription contracts issued thereunder. The duration of such contracts shall not be longer than three (3) years, and every such contract shall be filed with and subject to the approval of the commissioner as to the fairness of its terms. The contracts shall be deemed approved ninety (90) days after the date of filing with the commissioner unless, prior to the expiration of such ninety-day period, the commissioner notifies the sponsor of the prepaid legal services plan in writing of the commissioner’s disapproval.

Miss. Code Ann. § 83-49-17 Approval of underwriting rules and premiums; factors for consideration; conformity with state laws.

No sponsor of any prepaid legal services plan, or authorized representative thereof, shall enter into any contract with subscribers unless and until the sponsor has filed with the commissioner a copy of its underwriting rules and a full schedule of the rates, premiums or membership fees to be charged to the subscribers. These filings shall be deemed to be approved by the commissioner ninety (90) days after the date of filing with the commissioner, unless, prior to the expiration of the ninety-day period, the commissioner notifies the sponsor of the prepaid legal services plan in writing of the commissioner’s disapproval. In considering whether or not to approve a given rate schedule, the commissioner shall consider the following factors: Whether the rates are adequate to insure that all the benefits contracted for will be supplied; Whether the rates are excessive; Whether the rates are unfairly discriminatory; and Whether the rates are otherwise contrary to the laws or public policies of this state. In determining whether the rates to be charged are excessive, unfairly discriminatory, inadequate or otherwise contrary to the laws or public policies of this state, consideration shall be given to the past and prospective loss and countrywide expense experience, to all factors reasonably attributable to the class of risk, to a reasonable margin for profit and contingencies, to subscribers’ or policyholders’ dividends, savings or unabsorbed premium deposits allowed or returned by an insurer or sponsor to its policyholders, members or subscribers and investment income. The systems of expense provisions included in the rates for use by any insurer, group of insurers or sponsor may differ from those of other insurers, group of insurers or sponsors, to reflect the requirements of the operating method of any insurer, group of insurers or sponsors with respect to any kind of insurance, or with respect to any subdivision or combination thereof for which the subdivision or combination of separate expense provisions are applicable. Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards, or in experience, or in expense provisions, or in all three (3) factors. Except to the extent necessary to meet the provisions of subsection (1) of this section, uniformity among insurers or sponsors in any matters within the scope of this section is neither required nor prohibited. Insurers licensed to transact life or casualty insurance in this state are required to comply with the requirements of this section if they sell or offer for sale policies of prepaid legal services plans of sponsors licensed to operate prepaid legal services plans in this state. Provided, that nothing contained herein shall be deemed to relieve any insurer authorized to transact life or casualty insurance in this state from complying with the requirements of Title 83, Mississippi Code of 1972, and other laws of this state.

Miss. Code Ann. § 83-49-19 Advertising standards.

All advertising and solicitation concerning prepaid legal services plans shall be conducted in a simple, dignified manner. Every item of advertising or solicitation shall conform with the following standards: The form and content of any advertisement or solicitation shall be accurate and shall be sufficiently complete and clear to avoid deception or the capacity or tendency to mislead or deceive. Whether an advertisement has a capacity or tendency to mislead or deceive shall be determined by the commissioner from the overall impression that the advertisement may be reasonably expected to create upon a person of average education or intelligence, within the segment of the public to which it is directed, or within a segment of the public to which such advertisement may be reasonably calculated to reach. All advertisements and solicitations shall be truthful and not misleading in fact or in implication. Words or phrases, the meaning of which is clear only by implications or by familiarity with insurance terminology, shall not be used. Advertising and solicitation which include references to the legal rights or remedies of citizens shall be legally accurate. Advertising and solicitation which include references to the particular characteristics of one or more sponsors or prepaid legal services plans, or which compare one or more sponsors or prepaid legal services plans, shall be truthful and not misleading. No such advertising or solicitation shall contain the name, address, telephone number or any other identifying information about any attorney, and no such advertising or solicitation shall extol the alleged virtues or qualifications or point out the alleged shortcomings of any attorney, whether named or not.

Miss. Code Ann. § 83-49-21 Provisions of §§ 83-5-29 through 83-5-51 applicable to plan sponsors.

The provisions of Sections 83-5-29 through 83-5-51 applicable to “insurers” shall apply to sponsors as defined in this chapter and for the purpose of determining whether a violation of Sections 83-5-29 through 83-5-51 has occurred, a “sponsor” as defined in this chapter shall be deemed to be a “person” as used in Sections 83-5-29 through 83-5-51, whichever is applicable.

Miss. Code Ann. § 83-49-23 Capitalization of sponsors other than insurers; impairment.

No license or renewal license under this chapter shall be issued to a sponsor other than an insurer as defined herein, unless such sponsor: Shall possess as minimum capital and thereafter maintain a minimum balance of at least Five Thousand Dollars ($5,000.00) in its capital accounts as shown in its annual report to the commissioner. Provided, the commissioner shall, in his discretion, require such higher amounts of capital as he deems necessary for the protection of the public; Shall deposit with the commissioner securities acceptable to the commissioner in the amount of Twenty-five Thousand Dollars ($25,000.00), or shall file with the commissioner a bond to be approved by the commissioner and made payable to the commissioner or his successors in office executed by such applicant as principal and by a corporate surety authorized to do business in this state in the penal sum of Twenty-five Thousand Dollars ($25,000.00), conditioned that the sponsor will conduct his business in accordance with the provisions of this chapter and the laws of this state, and that the sponsor will properly account for all moneys collected in connection therewith. Such bond shall remain in full force and effect until the surety is released from liability by the commissioner or until the bond is cancelled by the surety and no such bond shall be cancelled or terminated unless prior to such cancellation or termination thirty (30) days’ written notice is filed with the commissioner; and Shall maintain at all times a surplus, after deduction of reserves and exclusive of capital, of not less than twice the amount of capital required by paragraph (a), provided, however, in no case shall such surplus required to be maintained exceed Ten Thousand Dollars ($10,000.00). If at any time the surplus of such sponsor shall be less than the surplus set out in this paragraph, such sponsor shall be considered impaired; and it shall be the duty of the secretary-treasurer, directors and other proper officers of such sponsor to report any such impairment of surplus to the commissioner of insurance of this state in writing within ten (10) days after such impairment occurs. When any such impairment is reported, or if the commissioner of insurance should otherwise gain knowledge of the fact that the surplus of any such sponsor has been impaired, the commissioner shall forthwith suspend the certificate of authority or license of such sponsor to do business in this state until such sponsor shall raise or increase its surplus to the amount equal to that required herein.

Miss. Code Ann. § 83-49-25 Annual report; contents.

Every sponsor of a prepaid legal services plan shall, annually, on or before the first day of March, file in the office of the commissioner the following items: A statement, verified by at least two (2) of its principal officers or trustees, showing the financial condition of the plan on December 31 then next preceding, which shall be in such form and shall contain such matters as the commissioner shall prescribe; A statistical summary listing the numbers and types of claims paid and the average dollar amount of each type of claim; A list of the groups currently subscribing to the plan; A statement of the name, organizational form and principal place of business of the plan, and the name, organizational form and principal place of business of the sponsor of the plan; Copies of all advertising or solicitation material which the plan is using; and Such other pertinent and relevant information as the commissioner may reasonably require for the proper administration of this chapter. Provided, that all information furnished under this subsection (f) shall be kept confidential by the commissioner and shall not be made public by the commissioner or any other person, without the prior written consent of the sponsor or insurer to which it pertains unless the commissioner, after giving the sponsor or insurer who would be affected thereby, notice and opportunity to be heard, determines that the interests of the subscribers, policyholders, or the public will be served by the publication thereof, in which event he may publish all or any part thereof in such manner as he may deem appropriate, except to the extent that it may be produced in any judicial or administrative proceeding and may be admissible in evidence therein.

Miss. Code Ann. § 83-49-27 Retention of records; inspection and report; expenses.

The commissioner shall require every sponsor of a prepaid legal services plan to retain at the address shown on its license the plan-related books, records, accounts and vouchers for a term of five (5) years beginning immediately after the completion of the transaction and kept in such manner that the commissioner or his authorized representatives may readily verify its annual statements and determine whether the plan and the sponsor are in compliance with the law. The commissioner, or his designee, as often as the commissioner, in his sole discretion, deems appropriate but, at a minimum, at least every five (5) years shall visit each sponsor of a prepaid legal services plan and examine into such of its affairs as relate to the business of operating the plan. The commissioner shall have free access to all plan-related books, records, accounts and vouchers of the plan and may summon and examine under oath officers, trustees, agents and employees of the plan and any other persons regarding the affairs and condition of the plan. Provided, that no information, written or oral, need be supplied under this or any other subsection of this chapter in violation of the attorney-client privilege as it is construed by the courts of this state. Every sponsor of a plan being examined, its officers, employees and agents shall produce and make freely accessible to the commissioner the accounts, records, documents and files in its possession or control relating to the subject of the examination. Such officers, employees and agents shall facilitate such examination and aid the examiners as far as it is in their power in making the examination. The commissioner shall make a full written report of each examination made by him containing only facts ascertained from the accounts, records and documents examined and from the sworn testimony of witnesses. The commissioner shall furnish a copy of the proposed report to the sponsor of the plan examined not less than twenty (20) days prior to filing the report. If such plan so requests in writing within such twenty-day period, or such longer period as the commissioner may grant, the commissioner shall grant a hearing with respect to the report, and shall not so file the report until after the hearing and such modifications have been made therein as the commissioner may deem proper. The commissioner may withhold from public inspection the report of any examination or investigation for so long as he deems it to be in the public interest or necessary to protect the plan examined from unwarranted injury. After the report has been filed, the commissioner may publish the report or the results thereof in one or more newspapers published in this state if he should deem it to be in the public interest. The sponsor of the plan so examined shall pay, at the direction of the commissioner, all the actual travel and living expenses of such examination. When the examination is made by an examiner who is not a regular employee of the department, the sponsor examined shall pay the proper charges for the services of the examiner and his assistants in an amount approved by the commissioner. A consolidated account for the examination shall be filed by the examiner with the commissioner. No sponsor or other entity shall pay and no examiner shall accept any additional emolument on account of any examination. When the examination is conducted, in whole or in part, by regular salaried employees of the Department of Insurance, payment for such services and proper expenses shall be made by the sponsor examined to the commissioner, and such payment shall be deposited with the State Treasurer to the account of the Department of Insurance.

Miss. Code Ann. § 83-49-29 Hearings and proceedings to be in conformity with §§ 83-17-123 et seq.

Except as otherwise provided in this chapter, all hearings and proceedings held under this chapter shall be conducted in accordance with the provisions of Section 83-17-123 et seq. and the commissioner shall have all the powers granted to him therein.

Miss. Code Ann. § 83-49-31 Injunctive relief against plans in violation of chapter; appointment of receivers; enforcement of criminal laws.

If the commissioner finds that any prepaid legal services plan operator or its sponsor (a) has failed to comply with any provision of this chapter; (b) is fraudulently operated; (c) is in such condition as to render further plan operations hazardous to the public interest or the interest of subscribers; (d) is financially unable to meet its obligations and claims as they come due; or (e) has violated any other provision of law, he may apply to the Circuit Court of the First Judicial District of Hinds County, State of Mississippi, for an injunction. The court may forthwith issue a temporary injunction restraining the transaction of any business by the plan, and it may, after a full hearing, make the injunction permanent, and appoint one or more receivers to take the plan to settle its affairs, and distribute its funds to those entitled thereto, subject to such rules and orders as the court may prescribe. If it appears that a crime has been committed in connection with the sale, advertisement, administration or management of any prepaid legal services plan, the attorney general of the State of Mississippi may pursue the appropriate criminal action.

Miss. Code Ann. § 83-49-33 Venue provisions applicable to sponsors.

The venue provisions applicable to “insurers” under Title 83, Chapters 19 and 21, Mississippi Code of 1972, shall apply to sponsors as defined in this chapter.

Miss. Code Ann. § 83-49-35 Rules and regulations.

The commissioner shall have full power and authority to promulgate and adopt rules and regulations necessary for the implementation of this chapter.

Miss. Code Ann. § 83-49-37 Insurers to be in conformity with this chapter and other laws.

All insurers licensed to transact life or casualty insurance in this state who are licensed to issue policies of prepaid legal services insurance in this state shall be required to meet all the requirements of this chapter, unless specifically excepted therefrom by this chapter. Provided, that nothing contained herein shall be deemed to relieve the obligations of an insurer licensed to transact life or casualty insurance in this state from complying with the requirements of the Mississippi Code of 1972 and any other applicable laws of this state.

Miss. Code Ann. § 83-49-39 Investment of funds.

A sponsor shall invest the funds of a prepaid legal services plan only in such investments as are authorized by the laws of this state for the investment of assets of domestic casualty insurance companies and subject to the limitations thereon or in such investments as are authorized by the laws of this state for the investment of assets of corporations authorized to transact business in this state pursuant to the provisions of Title 83, Mississippi Code of 1972, as the case may be.

Miss. Code Ann. § 83-49-41 Disposition of deposits.

Any deposits of a sponsor of a prepaid legal services plan deposited with the commissioner pursuant to the provisions of this chapter shall be administered by the commissioner in accordance with the provisions of the Mississippi Code of 1972 as though deposited by a domestic casualty insurer authorized to transact insurance in this state or as deposited by a corporation authorized to transact business in this state pursuant to the provisions of Chapter 19, Title 83, Mississippi Code of 1972, as the case may be.

Miss. Code Ann. § 83-49-43 When subscription contracts may first be issued.

No subscription contracts for prepaid legal services may be sold or offered for sale in this state prior to July 1, 1983. Provided, that nothing contained herein shall be deemed to prohibit an insurer authorized to transact life or casualty insurance in this state from selling or offering for sale in this state before July 1, 1983, individually underwritten and individually issued policies of prepaid legal services insurance on policy forms which have been approved by the commissioner pursuant to the provisions of the Mississippi Code of 1972, and Section 83-49-17. The provisions of this section shall not apply to any subscription contracts negotiated and issued in accordance with the provisions of section 302C of the Labor Management Relations Act of 1947 (87 Stat. 314, 29 USCA Section 186(c)(8)).

Miss. Code Ann. § 83-49-45 Tax imposed on premiums; collection and enforcement.

In addition to any license fee or tax now or hereafter provided by law, which shall be paid when the company or sponsor enters or is admitted to do business in this state, there is hereby levied and imposed upon all insurance companies and sponsors an additional annual license or privilege tax of three percent (3%) of the gross amount of premium receipts received from, and on prepaid legal services insurance policies and subscription contracts as defined in this chapter, written in or covering risks located in this state. In determining said amount of premiums, there shall be deducted therefrom premiums received for reinsurance from companies authorized to do business in this state, cash dividends paid under policy contracts or subscription contracts in this state, and premiums returned to policyholders or subscribers and cancellation on accounts of policies or subscription contracts not taken. The term “premium” as used herein shall also include policy fees, membership fees and monthly subscription contract charges and all other fees collected by the companies or sponsors. No credit or deduction from gross premium receipts shall be allowed for any commission, fee or compensation paid to any agent, solicitor or representative. Every insurance company or sponsor liable for the tax under the provisions hereof shall, quarterly each year as designated by the state tax commission, make and file with the state tax commission a full and correct statement, under oath of its president, secretary or other duly authorized officer at its home or head office in this country, of the gross amount of its premium receipts during the reporting period, and shall, at the time of filing such report, pay to the tax commission the tax levied hereby upon the premium collections for said period, computed as provided in subsection (1) of this section. Every insurance company or sponsor liable for the payment of tax hereunder shall file an annual reconciliation statement of taxes paid during the previous year. The annual reconciliation statement shall be in the form prescribed by the state tax commission and shall be filed with the state tax commission on or before the last day of February following the close of each calendar year. The state tax commission shall have the authority to promulgate rules and regulations, not inconsistent with this article, as it may deem necessary to enforce its provisions. If any insurance company, foreign or domestic, or sponsor shall fail to pay the tax imposed by this chapter at the time required therein, such company or sponsor shall be liable for the full amount of such tax, plus a penalty of twenty percent (20%) of the amount thereof, together with interest at the rate of twelve percent (12%) per annum from the due date of such taxes until same shall be paid. All taxes for which any company or sponsor is liable under the provisions of this chapter, and all penalties and interest due thereon, shall be collected and recovered by the state tax commission in the same manner provided by the law for the collection of sales taxes; and all administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes, failure to file returns, and for other noncompliance with the provisions of said chapter, and all other requirements and duties imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter; and the state tax commission shall exercise all the power and authority to perform all the duties with respect to taxpayers under this section as are provided in the Mississippi Sales Tax Law, except that in cases that conflict with the provisions of this chapter, in which case the provisions of this chapter shall prevail.

Miss. Code Ann. § 83-49-47 Agent or representative of sponsor; license required; fee; investigation; denial; grounds for issuance.

No person shall act as a representative of a sponsor or agent of a sponsor as defined in Section 83-17-1, Mississippi Code of 1972, without first having obtained a license from the commissioner to act as an agent or representative of a sponsor of prepaid legal services in this state. The annual license fee shall be Ten Dollars ($10.00). The fee for said license shall be paid to the commissioner on or before March 1 of each year. Before any licensee changes his address, he shall return his license to the commissioner, who shall endorse the license indicating the change. Each person to whom the license or the renewal thereof may be issued shall file sworn answers, subject to the penalties of perjury, to such interrogatories as the commissioner may require. The commissioner shall have authority, at any time, to require the applicant to disclose fully the identity of all stockholders, partners, officers and employees, and he may, in his discretion, refuse to issue or renew a license in the name of any firm, partnership or corporation if he is not satisfied that any officer, employee, stockholder or partner thereof who may materially influence the applicant’s conduct meets the standards of this chapter. Upon the filing of an application and the payment of the license fee, the commissioner shall make an investigation of each applicant and shall issue a license if he finds the applicant is qualified in accordance with this chapter. If the commissioner does not so find, he shall, within ninety (90) days after he has received such application, so notify the applicant and, at the request of the applicant, give the applicant a full hearing. The commissioner shall issue or renew a license applied for when he is satisfied that the person to be licensed: Is competent and trustworthy and intends to act in good faith as an agent or representative of a sponsor of prepaid legal services plans in this state; Has a good business reputation and has had experience, training or education so as to be qualified to act as an agent or representative of a sponsor of prepaid legal services plans.

Miss. Code Ann. § 83-49-49 Reserve.

Any insurer or sponsor operating or writing a prepaid legal services plan in this state shall be required to set aside as a legal reserve to protect the holders of its policy or subscription contracts in this state the pro rata unearned portion of the premium paid for such contract, to be held until termination of such contracts.