MCA Chapter 11

MCA Chapter 11
in effect

Miss. Code Ann. § 83-11-1 Definitions.

As used in this article: “Policy” means an automobile liability, automobile physical damage, or automobile collision policy, or any combination thereof, delivered or issued for delivery in this state, insuring a single individual, or husband and wife resident of the same household, as named insured and under which the insured vehicles therein designated are of the following types only: A motor vehicle of the private passenger or station wagon type that is not used as a public or livery conveyance for passengers, nor rented to others; or Any other four-wheel motor vehicle with a load capacity of fifteen hundred (1500) pounds or less which is not used in the occupation, profession, or business of the insured; provided, however, that this article shall not apply 1. to any policy issued under an automobile assigned risk plan, 2. to any policy insuring more than four (4) automobiles, or 3. to any policy covering garage, automobile sales agency, repair shop, service station, or public parking place operation hazards. “Automobile liability coverage” includes only coverage of bodily injury and property damage liability, medical payments, and uninsured motorist coverage. “Automobile physical damage coverage” includes all coverage of loss or damage to an automobile insured under the policy except loss or damage resulting from collision or upset. “Automobile collision coverage” includes all coverage of loss or damage to an automobile insured under the policy resulting from collision or upset. “Renewal” or “to renew” means the issuance and delivery by an insurer of a policy providing the same or substantially similar coverage replacing at the end of the policy period a policy previously issued and delivered by the same insurer or a licensed affiliate, or the issuance and delivery of a certificate of notice extending the term of a policy beyond its policy period or term; provided, however, that any policy with a policy period or term of less than six (6) months shall for the purpose of this article be considered as if written for a policy period or term of six (6) months. Any policy written for a term longer than one (1) year or any policy with no fixed expiration date shall, for the purpose of this article, be considered as if written for successive policy periods or terms of one (1) year; and such policy may be terminated at the expiration of any annual period upon giving thirty (30) days’ notice of cancellation prior to such anniversary date. Such cancellation shall not be subject to any other provisions of this article. “Nonpayment of premium” means failure of the named insured to discharge when due any of his obligations in connection with the payment of premiums on a policy, or any installment of such premium, whether the premium is payable directly to the insurer or its agents or indirectly under any premium finance plan or extension of credit. “Affiliate transfer” is when an insurer transfers, at renewal or policy expiration, its personal or commercial lines insurance policies to an affiliated licensed insurer that is a member of the same insurance group or same holding company as the transferring insurer. The issuance of a replacement policy form providing the same or substantially similar coverage issued by the same insurer, or the transfer of personal or commercial insurance policies to a licensed affiliate insurer that will issue the same or substantially similar policy, are considered a renewal and will not be treated as a cancellation or nonrenewal. The affiliate transfer must be to a licensed affiliate insurer that has been determined by the commissioner to have the same or better financial strength as the transferring insurer. The policy transfer must be selected on a nondiscriminatory basis. “Substantially similar” means a policy that provides the same basic coverages but may add, alter or eliminate incidental coverages and may provide coverages using different textual language.

Miss. Code Ann. § 83-11-3 Grounds for cancellation and exceptions.

A notice of cancellation of a policy shall be effective only if it is based on one or more of the following reasons: nonpayment of premium; the driver’s license or motor vehicle registration of the named insured, or of any other operator who either resides in the same household or customarily operates an automobile insured under the policy, has been under suspension or revocation during the policy period or, if the policy is a renewal, during its policy period or the one hundred eighty (180) days immediately preceding its effective date, unless within seven (7) days from the date of any such cancellation or suspension, the insured shall give insurer written notice of such revocation or suspension and shall direct the insurer to exclude from coverage under said policy the person whose license was so suspended or revoked; further use of the insured vehicle by an excluded driver shall be grounds for immediate cancellation of a policy; or failure to make timely payment of dues to, or to maintain membership in good standing with, a designated association, corporation, or other organization where the original issue of such policy or renewal was dependent upon such membership. This section shall not apply to any policy or coverage which has been in effect less than sixty (60) days at the time notice of cancellation is mailed or delivered by the insurer, unless it is a renewal policy. Modification of automobile physical damage coverage by the inclusion of a deductible not exceeding One Hundred Dollars ($100.00) shall not be deemed a cancellation of the coverage or of the policy. This section shall not apply to nonrenewal.

Miss. Code Ann. § 83-11-5 Notice of cancellation.

No notice of cancellation of a policy to which Section 83-11-3 applies shall be effective unless mailed or delivered by the insurer to the named insured and to any named creditor loss payee at least thirty (30) days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium at least ten (10) days’ notice of cancellation accompanied by the reason therefor shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than fifteen (15) days prior to the effective date of cancellation, the insurer will specify the reason for such cancellation. This section shall not apply to nonrenewal unless there is a named creditor loss payee.

Miss. Code Ann. § 83-11-7 Non-renewal.

No insurer shall fail to renew a policy unless it shall mail or deliver to the named insured, at the address shown in the policy and to the named creditor loss payee, at least thirty (30) days’ advance notice of its intention not to renew. This section shall not apply if there is no named creditor loss payee and: If the insurer has manifested its willingness to renew, subject to certain specified conditions which are not met by the insured; nor If the insured has manifested its unwillingness to renew; nor In case of nonpayment of premium; nor In case of failure to make timely payment of dues to, or to maintain membership in good standing with, a designated association, corporation or other organization where the original issue of such policy or renewal was dependent upon such membership; provided that, notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other insurance policy with respect to any automobile designated in both policies. A notice of nonrenewal is not required when a replacementpolicy form is issued by the same insurer or when an insured is transferredto a licensed affiliate of the insurer, so long as the transfer orreplacement results in the same or substantially similar coverage.Whenever a replacement policy form is issued by the same insurer,or when transfer of an insured to a licensed affiliate occurs documentssigned by the insured are applicable to the replacement policy form,the coverage transferred to a licensed affiliate insurer, or both,and remain valid and enforceable. Whenever a replacement policy form providing the sameor substantially similar coverage is issued by the same insurer, orby a licensed affiliate insurer, such insurer shall mail or deliverto the policyholder, at least thirty (30) days in advance of the effectivedate of renewal, written notice of any terms or conditions that areless favorable to the policyholder. A transferring insurer shall notify the MississippiInsurance Department at least forty-five (45) days in advance of notifyinga policyholder that its personal or commercial lines insurance policieswill be transferred to another licensed insurer within the same insurancegroup or same holding company. The notice shall include the name ofinsurer transferring the personal or commercial lines policies andthe name and financial rating of the insurer receiving the transferredpersonal or commercial lines policies. A transferring insurer shall provide the policyholderwritten notice of the policy transfer at least thirty (30) days priorto expiration of the policy term and shall include the financial ratingof the insurer receiving the transferred policy. Such notice mustbe provided to the policyholder with the notice of renewal premiumat least thirty (30) days before the effective date of the transfer. Renewal of apolicy shall not constitute a waiver or estoppel with respect to groundsfor cancellation which existed before the effective date of such renewal,and if a policy shall be cancelled as authorized by this article priorto such policy’s renewal, such cancellation shall terminateany right of renewal conferred by this article.

Miss. Code Ann. § 83-11-9 Proof of notice.

Proof of mailing of notice of cancellation, or of intention not to renew, or of reasons for cancellation to the named insured by a certificate of mailing, at the address shown in the policy, shall be sufficient proof of notice.

Miss. Code Ann. § 83-11-11 Notice of insured’s eligibility for assigned risk plan.

When a policy of automobile liability insurance is cancelled other than for nonpayment of premium, or in the event of failure to renew a policy of automobile liability insurance to which Section 83-11-7 applies, the insurer shall notify the named insured of his possible eligibility for automobile liability insurance through the automobile liability assigned risk plan. Such notice shall accompany or be included in the notice of cancellation or the notice of intent not to renew.

Miss. Code Ann. § 83-11-13 Written statement of reasons for cancellation.

Where the reason for cancellation does not accompany or is not included in the notice of cancellation, the insurer shall, upon written request of the named insured mailed or delivered to the insurer not less than fifteen (15) days prior to the effective date of cancellation, specify in writing the reason for such cancellation. Such reason shall be mailed or delivered to the named insured within five (5) days after receipt of such request.

Miss. Code Ann. § 83-11-15 Liability for statement of reasons for cancellation.

There shall be no liability on the part of and no cause of action of any nature shall arise against the commissioner of insurance or against any insurer, its authorized representative, its agents, its employees, or any firm, person, or corporation furnishing to the insurer or its agents information as to reasons for cancellation, for any statement made by any of them in any written notice of cancellation or in any other communication, oral or written, specifying the reasons for cancellation or the providing of information pertaining thereto, or for statements made or evidence submitted at any hearings conducted in connection therewith.

Miss. Code Ann. § 83-11-17 Appeal from cancellation or nonrenewal.

A named insured who wishes to contest the reason or reasons for a cancellation of a policy which has been in effect for sixty (60) days or more or failure by insurer to give proper notice of nonrenewal as provided hereunder shall, not less than seven (7) working days from the date of receipt of notice of cancellation or receipt of notice of nonrenewal, mail or deliver to the Commissioner of Insurance a written request for a hearing, which request shall state clearly the basis for the appeal and shall be accompanied by a filing fee of Fifteen Dollars ($15.00). A cancellation or nonrenewal which is subject to the provisions of this article shall be deemed effective unless the Commissioner of Insurance determines otherwise in accordance with the provisions of this article.

Miss. Code Ann. § 83-11-19 Hearing and order of commissioner.

Within two (2) working days after receipt of a timely request for a hearing, the commissioner or his officially appointed designee shall call a hearing upon at least seven (7) days’ notice to the parties. Each insurer licensed to do in this state the kind of business which is subject to this article shall maintain on file with the commissioner the name and address of the person authorized to receive notices pursuant to this article on behalf of the insurer. The commissioner or his designated representative who conducted the hearing shall, at the conclusion thereof or not later than two (2) days thereafter, issue his written findings to the parties. If he finds for the named insured, he shall assess the insurer Fifteen Dollars ($15.00) to defray the cost of the hearing and shall refund the Fifteen Dollars ($15.00) filing fee to the named insured; and he shall either order the insurer to rescind its notice of cancellation or, if the date cancellation is to be effective has elapsed, order the policy reinstated or renewed. Such order shall operate retroactively only to cover a period not to exceed twenty (20) days from the date cancellation otherwise would have been effective, and prospectively from the date on which the order was issued; provided, however, that no policy shall be reinstated or renewed while the named insured is in arrears in payment of premiums on such policy. If the commissioner or his representative finds for the insurer, his written order shall so state and he shall assess the named insured Fifteen Dollars ($15.00) and apply the named insured’s Fifteen Dollar ($15.00) filing fee against the assessment to defray the cost of the hearing. Reinstatement of a policy under this section shall not operate in any way to extend the expiration, termination, or anniversary date provided in the policy. Renewal of a policy shall be for a term of one (1) year from the expiration date of the prior policy, and otherwise shall contain the same coverage, terms, and contractual provisions contained in said prior policy.

Miss. Code Ann. § 83-11-21 Judicial appeals from commissioner’s decisions.

The following procedure shall govern in taking and perfecting appeals from the decision of the commissioner: Any person who is a party to any hearing before the commissioner, and who is aggrieved by any decision of the commissioner with respect to any hearing before him, shall have the right of appeal to the chancery court of the county of the insured’s residence. All such appeals shall be taken and perfected within sixty (60) days from the date of the decision of the commissioner which is the subject of the appeal, and the chancery court to which such appeal is taken may affirm such decision, or reverse and remand the same to the commissioner for further proceedings as justice may require, or dismiss such appeal. All such appeals shall be tried de novo. Upon the filing with the commissioner of a petition of appeal to the proper chancery court, it shall be the duty of the commissioner, as promptly as possible and in any event within sixty (60) days after approval of the appeal bond, to file with the clerk of said chancery court to which the appeal is taken a copy of the petition for appeal and of the decision appealed from, and the original and one (1) copy of the transcript of the record of the proceedings and evidence before the commission. After the filing of said petition, the appeal shall be perfected by the filing of a bond in the penal sum of One Hundred Dollars ($100.00) with two (2) sureties, or with a surety company qualified to do business in Mississippi as surety, conditioned to pay the costs of such appeal, said bond to be approved by the commissioner or by the clerk of the chancery court to which such appeal is taken. No decision of the commissioner made as a result of a hearing under the provisions of this section shall become final with respect to any party affected and aggrieved by such decision until such party shall have exhausted or shall have had an opportunity to exhaust all of his remedies provided by this section.

Miss. Code Ann. § 83-11-101 Automobile liability policies to contain “uninsured motorist” and property damage provisions; rejection of uninsured motorist coverage.

No automobile liability insurance policy or contract shall be issued or delivered after January 1, 1967, unless it contains an endorsement or provisions undertaking to pay the insured all sums which he shall be legally entitled to recover as damages for bodily injury or death from the owner or operator of an uninsured motor vehicle, within limits which shall be no less than those set forth in the Mississippi Motor Vehicle Safety Responsibility Law, as amended, under provisions approved by the Commissioner of Insurance; however, at the option of the insured, the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of bodily injury liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The coverage herein required shall not be applicable where any insured named in the policy shall reject the coverage in writing and provided further, that unless the named insured requests such coverage in writing, such coverage need not be provided in any renewal policy, any replacement policy with the same or substantially similar terms and conditions issued by the same insurer, and any transferred policy with the same or substantially similar terms and conditions issued by a licensed affiliate of the original insurer where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer or a licensed affiliate of the original insurer in the same holding company. No automobile liability insurance policy or contract shall be issued or delivered after January 1, 1980, unless it contains an endorsement or provisions undertaking to pay the insured all sums which he shall be legally entitled to recover as damages for property damage from the owner or operator of an uninsured motor vehicle, within limits which shall be no less than those set forth in the Mississippi Motor Vehicle Safety Responsibility Law, as amended, under provisions approved by the Commissioner of Insurance; however, at the option of the insured, the uninsured motorist limits may be increased to limits not to exceed those provided in the policy of property damage liability insurance of the insured or such lesser limits as the insured elects to carry over the minimum requirement set forth by this section. The coverage herein required shall not be applicable where any insured named in the policy shall reject the coverage in writing and provided further, that unless the named insured requests such coverage in writing, such coverage need not be provided in any renewal policy, any replacement policy with the same or substantially similar terms and conditions issued by the same insurer, and any transferred policy with the same or substantially similar terms and conditions issued by a licensed affiliate of the original insurer where the named insured had rejected the coverage in connection with a policy previously issued to him by the same insurer or a licensed affiliate of the original insurer in the same holding company. The property damage provision may provide an exclusion for the first Two Hundred Dollars ($200.00) of such property damage; however, the uninsured motorist provision need not insure any liability for property damage, for which loss the policyholder has been compensated by insurance or otherwise. The insured may reject the property damage liability insurance coverage required by subsection (2) and retain the bodily injury liability insurance coverage required by subsection (1), but if the insured rejects the bodily injury liability coverage he may not retain the property damage liability coverage. No insured may have property damage liability insurance coverage under this section unless he also has bodily injury liability insurance coverage under this section. In the course of the sale or issuance of any automobile liability insurance policy, insurers shall inform the named insured or applicant, on a form approved by the Department of Insurance, of the benefits of and reasons for electing to purchase uninsured motorist coverage. If the insured named in the policy wishes to reject uninsured motorist coverage, such form shall be signed by or on behalf of the named insured. If this form is signed by or on behalf of the named insured, it is binding upon all persons insured by the automobile liability insurance policy and it shall be presumed that there was an informed, knowing rejection and waiver of uninsured motorist coverage.

Miss. Code Ann. § 83-11-102 Purchase of single-limit, nonstacking uninsured motorist insurance coverage for four or more vehicles in lieu of uninsured motorists coverage for each vehicle.

An insured in an automobile liability policy that covers four (4) or more vehicles may elect to purchase, and an insurer may offer, single-limit, nonstacking uninsured motorist insurance coverage covering all vehicles listed in the policy for a single amount of uninsured motorist coverage. The single uninsured motorist coverage limit must be in an amount of no less than the liability limits required under the Mississippi Motor Vehicle Safety Responsibility Law for four (4) vehicles combined. No matter how many vehicles are listed in or covered by the policy, the policy shall provide only one (1) single limit of uninsured motorist coverage to an injured person, or for property damage, or both, for any one (1) accident. The single limit of uninsured motorist coverage provided by the single-limit, nonstacking uninsured motorist insurance coverage may, where appropriate, be aggregated with or stacked with uninsured motorist insurance coverage available from other policies. In the course of the sale or issuance of single-limit, nonstacking uninsured motorist insurance coverage, insurers shall inform the named insured or applicant, on a form approved by the Department of Insurance, of the limitation on stacking imposed and that such coverage is an alternative to coverage without such limitation, and such form shall be signed by or on behalf of the named insured or applicant. If this form is signed by or on behalf of a named insured or applicant, it is binding upon all persons insured by the uninsured motorist coverage and it shall be presumed that there was an informed, knowing acceptance of such limitation. When the named insured or applicant has initially accepted such limitation on stacking, such acceptance shall apply to any policy from the same insurer, including sister insurers in the same holding company, which renews the coverage, extends the coverage or changes covered vehicles unless and until the named insured requests in writing a change to stackable uninsured motorist coverage. Endorsements to the coverage language that do not change the uninsured motorist coverage language shall not be considered a new policy for purposes of determining whether a new acceptance form is necessary.

Miss. Code Ann. § 83-11-103 Definitions.

As used in this article: The term “bodily injury” shall include death resulting from such injury. The term “insured” shall mean the named insured and, while resident of the same household, the spouse of any such named insured and relatives of either, while in a motor vehicle or otherwise, and any person who uses, with the consent, expressed or implied, of the named insured, the motor vehicle to which the policy applies, and a guest in such motor vehicle to which the policy applies, or the personal representative of any of the above. The definition of the term “insured” given in this section shall apply only to the uninsured motorist portion of the policy. The term “uninsured motor vehicle” shall mean: A motor vehicle as to which there is no bodily injury liability insurance; or A motor vehicle as to which there is such insurance in existence, but the insurance company writing the same has legally denied coverage thereunder or is unable, because of being insolvent at the time of or becoming insolvent during the twelve (12) months following the accident, to make payment with respect to the legal liability of its insured; or An insured motor vehicle, when the liability insurer of such vehicle has provided limits of bodily injury liability for its insured which are less than the limits applicable to the injured person provided under his uninsured motorist coverage; or A motor vehicle as to which there is no bond or deposit of cash or securities in lieu of such bodily injury and property damage liability insurance or other compliance with the state financial responsibility law, or where there is such bond or deposit of cash or securities, but such bond or deposit is less than the legal liability of the injuring party; or A motor vehicle of which the owner or operator is unknown; provided that in order for the insured to recover under the endorsement where the owner or operator of any motor vehicle which causes bodily injury to the insured is unknown, actual physical contact must have occurred between the motor vehicle owned or operated by such unknown person and the person or property of the insured; or A motor vehicle owned or operated by a person protected by immunity under the Mississippi Tort Claims Act, Title 11, Chapter 46, Mississippi Code of 1972, if the insured has exhausted all administrative remedies under that chapter. No vehicle shall be considered uninsured that is owned by the United States government and against which a claim may be made under the Federal Tort Claims Act, as amended.

Miss. Code Ann. § 83-11-105 Action against owner or operator of uninsured vehicle.

In the event the owner or operator of the uninsured vehicle causing injury or death is known and action is brought against said owner or operator by the named insured as defined by said policy, then a copy of the process served upon the owner or operator shall also be served by the circuit clerk mailing, registered mail, a copy of the process to the insurance company issuing the policy providing the uninsured motorist coverage as prescribed by law. If the owner or operator of any motor vehicle which causes bodily injury to the insured be unknown, the insured or someone on his behalf, or in the event of a death claim, someone on behalf of the party having such claim in order for the insured to recover under the endorsement, shall report the accident as required by Section 63-15-9, Mississippi Code of 1972.

Miss. Code Ann. § 83-11-107 Subrogation.

An insurer paying a claim under the endorsement or provisions required by Section 83-11-101 or Section 83-11-102 shall be subrogated to the rights of the insured to whom such claim was paid against the person causing such injury, death, or damage to the extent that payment was made, including the proceeds recoverable from the assets of the insolvent insurer. The bringing of an action against the unknown owner or operator, or the conclusion of such an action, shall not constitute a bar to the insured if the identity of the owner or operator who caused the injury or damages complained of becomes known, provided that in any action brought against such owner or operator, the insurance company that has previously made payment as a result of the policyholder’s claim against such owner or operator shall be mailed a copy of the summons issued for the defendant or defendants, and that any recovery against such owner or operator shall be paid to the insurance company to the extent that such insurance company paid the named insured in the action brought against such owner or operator, except that such insurance company shall pay its proportionate part of any reasonable costs and expense incurred in connection therewith, including reasonable attorney’s fees.

Miss. Code Ann. § 83-11-109 Arbitration provisions prohibited.

No such endorsement or provisions shall contain a provision requiring arbitration of any claim arising under any such endorsement or provisions. The insured shall not be restricted or prevented in any manner from employing legal counsel or instituting or prosecuting to judgment legal proceedings, but the insured may be required to establish legal liability of the uninsured owner or operator.

Miss. Code Ann. § 83-11-111 Excess insurance coverage.

Any policy which grants the coverage required for motor vehicle liability insurance may also grant any lawful coverage in excess of, or in addition to, the coverage specified for a motor vehicle liability policy, and the excess or additional coverage shall not be subject to the provisions of this article, except as otherwise provided in this article. With respect to a policy which grants this excess or additional coverage, the term “motor vehicle liability policy” as used herein shall apply only to that part of the coverage which is required by this article. Any binder issued pending the issuance of a motor vehicle liability policy shall be considered as fulfilling the requirements for such policy.

Miss. Code Ann. § 83-11-203 Definitions.

As used in this article: “Automobile club” shall mean any person who, in consideration of dues, assessments, or periodic payments of money, promises its members or subscribers to assist them in matters relating to travel and the operation, use, and maintenance of an automobile in the supply of features or services which may include: such services as community traffic safety services, travel and touring service, theft or reward service, map service, towing service, emergency road service, and legal fee reimbursement service in the defense of traffic offenses, none of which enumerated features or services, if provided by the automobile club itself, shall be subject to the insurance laws of this state; the purchase of accidental injury and death benefits insurance coverage and the purchase of bail bond coverage, as provided by applicable statutes, by an insurance company authorized to do business in Mississippi; and such other features or services not deemed by the commissioner to constitute the business of insurance. Provided, however, the definition of an automobile club shall not include persons, associations, or corporations whose services are provided predominantly on a reimbursable basis. Such operations shall constitute insurance and be subject to the insurance laws of Mississippi. “Commissioner” means the commissioner of insurance of the State of Mississippi. “Club agent” is a person, other than the automobile club itself, who acts or aids in any manner in the solicitation, delivery, or negotiation of any service contract, or of the renewal or continuance thereof. This, however, shall not include any person performing only work of a clerical nature in the office of the automobile club. “Service contract” means an agreement whereby an automobile club, for a consideration, promises to render, furnish, procure, or reimburse club members specified services. “Person” means any individual person, firm, company, corporation, partnership, or association. “Insurance service” means the selling or making available individual or group insurance policies or certificates other than service contracts as a result of membership in or affiliation with an automobile club; such policies, if sold or made available, shall be issued only by an insurance company duly authorized to do business in Mississippi.

Miss. Code Ann. § 83-11-205 Additional insurance services.

The commissioner may, upon the application of an automobile club, allow such automobile club to provide specific insurance services not enumerated in section 83-11-203(a)(2).

Miss. Code Ann. § 83-11-207 Security deposit or bond.

No automobile club shall render or agree to render service without first depositing and thereafter continuously maintaining security in one (1) of the following forms with the commissioner: The sum of Fifteen Thousand Dollars ($15,000.00) in cash or Fifteen Thousand Dollars ($15,000.00) surety bond by a surety company authorized to do business in Mississippi, or Fifteen Thousand Dollars ($15,000.00) in securities of a type approved by the commissioner and qualified for legal investment by an insurance company authorized to do business in Mississippi. If any security deposited with the commissioner shall become impaired and shall not be restored within thirty (30) days after written demand by the commissioner, the commissioner shall revoke the certificate of authority of the automobile club or, in the alternative, the commissioner may require such additional security deposit as in his discretion he shall deem necessary to restore adequate securities for the automobile club deposit.

Miss. Code Ann. § 83-11-209 Purposes and conditions of security.

The security required to be filed by this article shall be for the protection, use, and benefit of any club member, shall be subject to the following conditions, and, if a surety bond, shall be so expressly conditioned that: The club will faithfully furnish and render to club members any and all of the automobile club services sold or offered for sale by it, and The club will pay any fines, fees, or penalties imposed upon it pursuant to the provisions of this article.

Miss. Code Ann. § 83-11-211 Members’ rights against surety bond.

If a surety bond is filed, any applicant defrauded or injured by any wrongful act, misrepresentation, or failure on the part of the automobile club with respect to the selling or rendering of any of its services may bring suit on such bond in his own name; but the aggregate liability of the surety for all such suits shall, in no event, exceed the sum of such bond.

Miss. Code Ann. § 83-11-213 Rights against cash deposit.

A deposit of cash or securities, in lieu of a surety bond, shall be subject to the conditions applying to the bond and to execution on judgments against the club.

Miss. Code Ann. § 83-11-215 Approval of name.

The name of the automobile club shall be submitted to the commissioner for approval pursuant to Section 83-11-219 before the commencement of business under the provisions of this article. The commissioner shall reject any name so submitted when the proposed name is deceptively similar to that of any other automobile club or other corporation licensed or qualified to do business in this state.

Miss. Code Ann. § 83-11-217 Certificate of authority.

No person shall render or agree to render automobile club service in this state without first obtaining from the commissioner a certificate of authority so to act.

Miss. Code Ann. § 83-11-219 Application for certificate.

An application for an original certificate of authority as an automobile club shall be made to the commissioner in such form and detail as the commissioner shall prescribe and shall have annexed thereto: A copy of its charter as amended, certified, if a foreign company, by the proper public officer of the state or country of domicile; A copy of its bylaws, if any, certified by its proper officer; A statement of its financial condition, management, and affairs; A copy of each form of service agreement, contract, and service brochure it proposes to use in this state; If a foreign company, a certificate from the proper public official from its state or country of domicile showing that it is duly organized and is authorized to transact the type of automobile club service which it proposes to transact in Mississippi; Other documents or stipulations as the commissioner may reasonably require to evidence compliance with the provisions of the laws of the State of Mississippi; A certificate issued by the secretary of state that it has qualified to do business as a corporation in this state, and that it has appointed the commissioner as its attorney to receive service of legal process. The application shall be accompanied by a fee of One Hundred Dollars ($100.00), payable to the State of Mississippi.

Miss. Code Ann. § 83-11-221 Renewal of certificate.

A certificate of authority duly issued by the commissioner shall be evidence of an automobile club’s authority to transact the business of furnishing automobile club service in this state. A certificate of authority shall continue in force as long as the automobile club is entitled thereto under this article and until suspended or revoked by the commissioner, or terminated at the request of the automobile club; subject, however, to renewal of the certificate by the automobile club each year by: Payment prior to March 1 of each year, following that in which its original certificate is filed, of a fee of Twenty-five Dollars ($25.00), and due filing by the automobile club of its annual financial statement for the calendar year preceding, as required under Section 83-11-243.

Miss. Code Ann. § 83-11-223 Expiration and reinstatement of certificate.

Certificates of authority shall expire as of midnight on March 31 unless renewed. The commissioner shall promptly notify the automobile club of the occurrence of any failure resulting in impending expiration of its certificate of authority. The commissioner may in his discretion upon the automobile club’s request, made within three (3) months after expiration, reinstate and renew a certificate of authority which the automobile club had inadvertently permitted to expire, after the automobile club has fully cured all of its failures which resulted in expiration, and upon payment by the automobile club of a fee for reinstatement of Fifty Dollars ($50.00). Otherwise, the automobile club shall be granted another certificate of authority only after filing application therefor and meeting all other requirements as for an original certificate of authority in this state.

Miss. Code Ann. § 83-11-225 Grounds for revocation of certificate.

The commissioner may revoke, suspend, or refuse to continue the certificate of authority of an automobile club whenever, after a hearing and for cause shown, he determines that any of the following circumstances exist: The club has violated any provision of this article; It is found by the commissioner to be in such financial condition that its further transaction of automobile club service in this state would be hazardous to its members and the automobile club service-buying public in this state, or that it is insolvent; It refuses to remove, discharge, or terminate its relationship with a director or officer who has been convicted of any crime involving fraud, dishonesty, or like moral turpitude; It customarily or in the regular course of business compels claimants under its service contracts either to accept less than the amount due them or fewer services, or to bring suit against it to secure full payment of the amount of all services due; It conducts its business outside this state in such manner as unjustly to discriminate against or prejudice the interests of the people of this state; It is affiliated with and is under the same general management or interlocking directorate or ownership as another automobile club which transacts business in this state which does not have a certificate of authority therefor; It exceeds its charter powers of its certificate of authority; It refuses to be examined, or if its directors, managing officers, employees, or representatives refuse to submit to examination by the commissioner when required by him, or refuses to perform any legal obligation relative to the examination, the time and place of the examination to be specified by the commissioner.

Miss. Code Ann. § 83-11-227 Solicitation for club not having certificate of authority.

No person shall solicit or aid in the solicitation of another person to purchase a service contract or membership issued by a club not having a certificate of authority procured pursuant to this article.

Miss. Code Ann. § 83-11-229 Service contracts.

Automobile clubs shall be required to execute service contracts with their members. No service contract shall be executed, issued, or delivered in this state until the form thereof has been approved in writing by the commissioner. A service contract may be in the form of a written agreement between the automobile club and a member, or it may consist of a completed application, a membership card, and a written description of services to be rendered by the automobile club.

Miss. Code Ann. § 83-11-231 Mandatory information and provisions of contract.

No service contract shall be executed, issued, or delivered in the state unless it contains the following: The exact corporate or other name of the club. The exact location of its home office and of its usual place of business in the state, giving street number and city. A provision that the contract may be canceled at any time by giving written notice thereof by either the club or the holder, and that the holder will, if the dues or membership fee has been paid thereupon, be entitled to a refund of the unused portion of the consideration paid for such contract, calculated on a pro rata basis over the period of the contract, without any deductions, provided that the automobile club may make a reasonable minimum charge. A provision plainly specifying: the services promised, that the holder will not be required to pay any sum in addition to the amount specified in the contract for any services thus specified, the territory wherein such services are to be rendered, the date when such service will commence, and a statement in not less than fourteen (14) point modern type at the head of said contract stating, “This is not an insurance contract.”

Miss. Code Ann. § 83-11-233 Misrepresentation.

No automobile club or officer or agent thereof shall in any manner misrepresent the terms, benefits, or privileges of any service contract or membership issued or to be issued by it.

Miss. Code Ann. § 83-11-235 Effect of non-complying contract.

Any service contract or membership made, issued, or delivered contrary to any provision of this article shall, nevertheless, be valid and binding on the club.

Miss. Code Ann. § 83-11-237 Notice of appointment of sales agent.

An automobile club operating in this state pursuant to a certificate of authority issued hereunder shall, within thirty (30) days of the date of appointment, file with the commissioner a notice of appointment of a club agent by an automobile club to sell memberships in the automobile club to the public. This notification shall be upon such form as the commissioner may prescribe, shall contain the name, address, age, sex, and social security number of such club agent, and also contain proof satisfactory to the commissioner that such applicant is of good reputation and that he has received training from the club or is otherwise qualified in the field of automobile club service contracts and the laws of this state pertaining thereto. Upon termination of any club agent’s appointment by an automobile club, such automobile club shall, within thirty (30) days thereafter, notify the commissioner of such termination. The registration fee for club agents shall be Five Dollars ($5.00) annually, and such registration shall be renewable on April 1 of each year unless sooner revoked or suspended.

Miss. Code Ann. § 83-11-239 Revocation of agent’s registration.

The commissioner may suspend, revoke, or refuse to renew any club agent’s registration for any of the following causes: If the club agent violated any of the provisions or requirements of this article; If the club agent has misappropriated, converted to his own use, or has illegally withheld monies required to be held in the fiduciary capacity; If the club agent has materially misrepresented the terms or effect of any contract or has engaged in any fraudulent transaction; If in the conduct of his affairs he has shown himself to be incompetent, untrustworthy, or a source of injury and loss to the automobile club service-buying public; If the club agent has been convicted after registration of a crime involving moral turpitude.

Miss. Code Ann. § 83-11-241 Hearing on revocation.

No club agent’s registration shall be suspended or revoked by the commissioner without providing an opportunity to be heard and to produce evidence in his own behalf.

Miss. Code Ann. § 83-11-243 Financial statements.

Each authorized automobile club shall annually, before March 1, file with the commissioner a true statement of its financial condition, transactions, and affairs as of December 31 preceding. The statement shall contain such information as may be reasonably required by the commissioner, and shall be verified by the oaths of at least two (2) of the automobile club’s principal officers. The commissioner may suspend or revoke the certificate of authority of any automobile club failing to file its annual statement when due or during any extension of time therefor which the commissioner, for good cause, may grant.

Miss. Code Ann. § 83-11-247 Monies to be deposited.

All monies collected by the commissioner under any provisions of this article shall be deposited in the general treasury.

Miss. Code Ann. § 83-11-301 Recovery of towing and storage charges from insurer.

An automobile insurance policy shall not be construed to allow an insurer to assume or accede to the legal title of a motor vehicle without assuming credit obligations of the insured owner of the motor vehicle for reasonable and customary charges for towing and storage services associated with the incident from which the insurance coverage arises. An insurer which has succeeded to the title of a motor vehicle is not authorized to abandon such vehicle to a towing or storage service without consent of the provider of such service. A debt incurred by or on behalf of a named insured for towing or storage services may be collected from an insurer which succeeds to the legal title of the motor vehicle covered under the policy for physical damage, property damage or uninsured motorist coverage. An insurer may be authorized by the provisions of an automobile insurance policy to act for a named insured in any matter regarding the towing and storage of a covered disabled vehicle.

Miss. Code Ann. § 83-11-501 Requirement that repairs be made at particular shop prohibited; insurer’s payment of lowest fair amount in geographic or trade area.

No insurer may require as a condition of payment of a claim that repairs to a damaged vehicle, including glass repairs or replacements, must be made by a particular contractor or motor vehicle repair shop; provided, however, the most an insurer shall be required to pay for the repair of the vehicle or repair or replacement of the glass is the lowest amount that such vehicle or glass could be properly and fairly repaired or replaced by a contractor or repair shop within a reasonable geographical or trade area of the insured.

Miss. Code Ann. § 83-11-503 Advertisement to pay insured’s deductibles prohibited.

No person selling or engaged in the sale of automobile replacement glass shall advertise to pay all or part of an insured’s deductible under an insurance policy.

Miss. Code Ann. § 83-11-551 Addition of name of business repairing automobile or lienholder as payee on check; obtaining title where there is total loss settlement [Repealed effective July 1, 2020].

In cases in which there is not a total loss, when there are one or more lienholders shown in the policy or confirmed in writing by the insured before the loss, an insurer paying a claim under automobile physical damage coverage or automobile collision coverage, as such terms are defined in Section 83-11-1, shall add as a payee on the check, in addition to the name of the insured, the name of the business or other entity repairing the automobile or the name of the lienholder or lienholders. In cases of a total loss, when there are one or more lienholders (a) shown in the policy, (b) confirmed in writing by the insured before the loss, or (c) shown on the vehicle title recorded with the Mississippi Department of Revenue, an insurer paying a claim under automobile physical damage coverage or automobile collision coverage, as such terms are defined in Section 83-11-1, shall add as a payee on the check, in addition to the name of the insured, the name of the lienholder or lienholders. If the insured disputes the existence of any lien, it is the insured’s responsibility to have the liens released. When payment is made to a lienholder, the lienholder shall pay any balance owed to the debtor within thirty (30) days after receipt of the check. However, in the case of a total loss, the insurer may issue separate checks to the lienholder and to the insured for the amount of each party’s financial interest in the vehicle. This section shall not apply to the repair or replacement of glass in the vehicle. If an insurance company makes a total loss settlement on a motor vehicle, the owner or lienholder of the motor vehicle shall forward the properly endorsed certificate of title to the insurance company within fifteen (15) days after receipt of the settlement funds. If an insurance company is unable to obtain the properly endorsed certificate of title within thirty (30) days after disbursing a total loss settlement payment for a motor vehicle that does not have a lien or encumbrance, the insurance company or its agent may request the Department of Revenue to issue a salvage certificate of title or a parts-only certificate of title for the vehicle. The request under paragraph (a) of this subsection shall: Be submitted on each form required by and provided by the Department of Revenue; Document that the insurance company has made at least two (2) written attempts to obtain the certificate of title and include the documentation with the request; Include any fees applicable to the issuance of a salvage certificate of title or a parts-only certificate of title; and Be signed under penalty of perjury. If an insurance company is unable to obtain the properly endorsed certificate of title within thirty (30) days after disbursing a total loss settlement payment for a motor vehicle that has a lien or encumbrance, the insurance company or its agent shall submit documentation to the Department of Revenue from the claims file that establishes the lienholder’s interest was protected in the total loss indemnity payment for the claim. The documentation under paragraph (a) of this subsection shall be: Submitted with a request for a salvage certificate of title or a parts-only certificate of title for the vehicle; and The requirements under subsection (5)(b) of this section. Upon receipt of a properly endorsed certificate of title or a properly executed request under subsection (5) of this section, the Department of Revenue shall issue a salvage certificate of title or a parts-only certificate of title for the vehicle in the name of the insurance company. The Department of Revenue may promulgate rules, regulations and forms for the administration of subsections (4) through (6) of this section. This section shall stand repealed from and after July 1, 2020.

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