Bill Text: MS HB1033 | 2010 | Regular Session | Engrossed
Bill Title: Insurance adjuster and public adjuster licensing; revise certain provisions regarding.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2010-03-02 - Died In Committee [HB1033 Detail]
Download: Mississippi-2010-HB1033-Engrossed.html
MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Insurance
By: Representative Robinson
House Bill 1033
(As Passed the House)
AN ACT TO AMEND SECTION 27-15-97, MISSISSIPPI CODE OF 1972, TO INCREASE THE STATEWIDE PRIVILEGE TAXES FOR INSURANCE ADJUSTERS; TO AMEND SECTION 83-17-7, MISSISSIPPI CODE OF 1972, WHICH PROHIBITS INSURANCE COMPANIES AND AGENTS FROM PAYING COMMISSIONS TO ANY PERSON OR ENTITY THAT IS NOT LICENSED AS AN INSURANCE AGENT IN MISSISSIPPI, TO DELETE THE REPEALER ON THE SECTION; TO AMEND SECTION 83-17-25, MISSISSIPPI CODE OF 1972, TO SPECIFY THAT ANY PRIVILEGE LICENSE ISSUED UNDER CHAPTER 17, TITLE 83, MISSISSIPPI CODE OF 1972, SHALL BE EFFECTIVE ON THE DATE THE LICENSE IS ISSUED; TO AMEND SECTION 83-17-401, MISSISSIPPI CODE OF 1972, TO PRECLUDE MULTI-PERIL INSURANCE ADJUSTERS FROM DEFINITION OF "ADJUSTER" IN THE INSURANCE LAWS GOVERNING INSURANCE ADJUSTER LICENSING; TO AMEND SECTION 83-17-415, MISSISSIPPI CODE OF 1972, TO REVISE THE CONTINUING EDUCATION REQUIREMENTS FOR INSURANCE ADJUSTERS; TO AMEND SECTION 83-17-419, MISSISSIPPI CODE OF 1972, TO REVISE THE PROVISIONS REGARDING THE EXPIRATION AND RENEWAL OF AN INSURANCE ADJUSTER PRIVILEGE LICENSE; TO AMEND SECTION 83-17-513, MISSISSIPPI CODE OF 1972, TO REVISE THE CONTINUING EDUCATION REQUIREMENTS FOR PUBLIC ADJUSTERS; TO AMEND SECTION 83-17-517, MISSISSIPPI CODE OF 1972, TO REVISE THE PROVISIONS REGARDING THE EXPIRATION AND RENEWAL OF A PUBLIC ADJUSTER LICENSE; TO SPECIFY THAT ANY PRIVILEGE LICENSE ISSUED UNDER TITLE 83, MISSISSIPPI CODE OF 1972, SHALL BE EFFECTIVE ON THE DATE THE LICENSE IS ISSUED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-15-97, Mississippi Code of 1972, is amended as follows:
27-15-97. Upon each incorporated company, firm, or association engaged in the business of adjusting any insured losses Four Hundred Dollars ($400.00).
Upon each person engaged in the business of adjusting any insured losses One Hundred Dollars ($100.00).
This section shall not apply to officers or salaried employees of insurers nor to special or other agents of licensed insurers who adjust for the insurers they represent.
SECTION 2. Section 83-17-7, Mississippi Code of 1972, is amended as follows:
83-17-7. It shall be unlawful for any insurance company or any insurance agent to pay, directly or indirectly, any commission, brokerage or other valuable consideration on account of any policy or policies written on risks in this state to any person, agent, firm or corporation not duly licensed as an insurance agent in this state, except that property and other risks of nonresident persons, and of foreign corporations not qualified in this state, may be insured by brokers or other agents duly licensed in other states.
It shall be lawful, however, for an insurance company or any insurance agent to pay, directly or indirectly, to the surviving spouse or heirs of a deceased licensed insurance agent in this state any commissions or other valuable consideration to which the deceased agent would be entitled, whether such surviving spouse or heir is or is not a licensed agent.
It shall be lawful for an insurance agent, agency or affiliate to pay a referral fee to any unlicensed employee of the agent, agency or affiliate when the employee refers a prospective insured to the licensed agent or agency. The referral fee shall be a one-time nominal fee of a fixed dollar amount for each referral customer. The payment of any referral fee shall not depend on whether the referral results in a sale of any insurance products. Furthermore, the referral fee shall not be based on a percentage of any premiums or commissions collected by the licensed agent. The referral fee shall not be paid, either directly or indirectly, to the prospective insured.
The Commissioner of Insurance may promulgate rules and regulations necessary to carry out the provisions of this section.
* * *
SECTION 3. Section 83-17-25, Mississippi Code of 1972, is amended as follows:
83-17-25. No certificate of authority shall be issued to any agent who has not previously obtained from the commissioner a privilege license to act as an insurance agent; provided that agents or organizers of fraternal orders shall not be required to have such privilege license.
The privilege licenses and filing fees required of life insurance companies, health and accident insurance companies, hospital insurance companies and fraternal insurance companies, shall continue for the next ensuing twelve (12) months after January 1 of each year.
The privilege licenses and filing fees required of fire, casualty, liability, fidelity, surety, guaranty, inland marine, plate glass and title insurance companies shall continue for the next ensuing twelve (12) months after June 1 of each year.
The privilege license of an individual to act as an insurance producer, limited lines producer, limited lines credit insurance producer, supervising general agent or managing general agent shall continue from the date of issuance of original licenses or from the expiration date for existing licenses until the last day of the month of the licensee's birthday in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
The privilege license of a business entity to act as insurance producer, limited lines producer, limited lines credit insurance producer, supervising general agent or managing general agent shall continue from the date of issuance until May 31 in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
Any privilege license issued under this chapter shall be effective on the date the license is issued.
SECTION 4. Section 83-17-401, Mississippi Code of 1972, is amended as follows:
83-17-401. As used in this article, unless the context otherwise requires:
(a) "Adjuster" means any person who, as an independent contractor, or as an employee of an independent contractor, adjustment bureau, association, insurance company or corporation, managing general agent or self-insured, investigates or adjusts losses on behalf of either an insurer or a self-insured, or any person who supervises the handling of claims. "Adjuster" shall not include:
(i) An attorney at law who adjusts insurance losses from time to time and incidental to the practice of law, and who does not advertise or represent that he is an adjuster;
(ii) A salaried employee of an insurer who is regularly engaged in the adjustment, investigation or supervision of insurance claims;
(iii) Persons employed only for the purpose of furnishing technical assistance to a licensed adjuster, including, but not limited to, photographers, estimators, private detectives, engineers, handwriting experts and attorneys at law;
(iv) A licensed agent or general agent of an authorized insurer who processes undisputed or uncontested losses, or both, for such insurer under policies issued by the licensed agent or general agent;
(v) A person who performs clerical duties with no negotiations with the parties on disputed or contested claims, or both; * * *
(vi) Any person who handles claims arising under life, accident and health insurance policies; or
(vii) Any person who is a multi-peril crop insurance (MPCI) adjuster.
(b) "Insurer" means any insurance company or self-insured.
(c) "Commissioner" means the Commissioner of Insurance.
SECTION 5. Section 83-17-415, Mississippi Code of 1972, is amended as follows:
83-17-415. The commissioner shall adopt a procedure for certifying continuing education programs. Every individual seeking renewal of an adjuster license that has been in effect for a term of eighteen (18) months or less shall satisfactorily complete during the license period twelve (12) hours of study in approved continuing education courses. Every individual seeking renewal of an adjuster license that has been in effect for a term of more than eighteen (18) months shall satisfactorily complete during the license period twenty-four (24) hours of study in approved continuing education courses of which three (3) hours shall have a course concentration in ethics.
SECTION 6. Section 83-17-419, Mississippi Code of 1972, is amended as follows:
83-17-419. (1) The privilege license of an individual to act as an adjuster shall continue from the date of issuance for original licenses, or from the expiration date for existing licenses, until the last day of the month of the licensee's birthday in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
The privilege license of a business entity to act as an adjuster shall continue from the date of issuance until May 31 in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
(2) Each adjuster shall file an application for renewal of license on the form and in the manner prescribed by the commissioner for such purpose. Upon the filing of such application for renewal of license and the payment of the required fees, the current license shall continue to be in force until the renewal license is issued by the commissioner or until the commissioner has refused for cause to issue such renewal license, as provided in this article, and has given notice of such refusal in writing to the adjuster.
SECTION 7. Section 83-17-513, Mississippi Code of 1972, is amended as follows:
83-17-513. The commissioner shall adopt a procedure for certifying continuing education programs for public adjusters. Every individual seeking renewal of a public adjuster license that has been in effect for a term of eighteen (18) months or less shall satisfactorily complete during the license period twelve (12) hours of study in approved continuing education courses. Every individual seeking renewal of a public adjuster license that has been in effect for a term of more than eighteen (18) months shall satisfactorily complete during the license period twenty-four (24) hours of study in approved continuing education courses of which three (3) hours shall have a course concentration in ethics.
SECTION 8. Section 83-17-517, Mississippi Code of 1972, is amended as follows:
83-17-517. (1) The privilege license of an individual to act as a public adjuster shall continue from the date of issuance for original licenses, or from the expiration date for existing licenses, until the last day of the month of the licensee's birthday in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
The privilege license of a business entity to act as a public adjuster shall continue from the date of issuance until May 31 in the second year following issuance or renewal of the license, with a minimum term of thirteen (13) months.
(2) Each public adjuster shall file an application for renewal of license on the form and in the manner prescribed by the commissioner for such purpose. Upon the filing of such application for renewal of license and the payment of the required fees, prior to the expiration date, the current license shall continue to be in force until the renewal license is issued by the commissioner or until the commissioner has refused for cause to issue such renewal license, as provided in this article, and has given notice of such refusal in writing to the public adjuster.
SECTION 9. Any privilege license issued under Title 83, Mississippi Code of 1972, shall be effective on the date the license is issued.
SECTION 10. Sections 2, 3, 4 and 9 of this act shall take effect and be in force from and after its passage, and Sections 1, 5, 6, 7 and 8 of this act shall take effect and be in force from and after April 1, 2011.
