Bill Text: MS SB2416 | 2011 | Regular Session | Enrolled
Bill Title: Vehicle service contracts; provider not required to be named insured under reimbursement policy upon certain conditions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-03-14 - Approved by Governor [SB2416 Detail]
Download: Mississippi-2011-SB2416-Enrolled.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Insurance
By: Senator(s) Clarke
Senate Bill 2416
(As Sent to Governor)
AN ACT TO CREATE NEW SECTION 83-65-125, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PROVIDER OF VEHICLE SERVICE CONTRACTS SHALL NOT BE REQUIRED TO BE A NAMED INSURED UNDER A REIMBURSEMENT INSURANCE POLICY IF THE PROVIDER COMPLIES WITH CERTAIN REQUIREMENTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following section shall be codified as Section 83-65-125, Mississippi Code of 1972:
83-65-125. (1) A provider shall not be required to be a named insured under a reimbursement insurance policy for purposes of issuing, selling or offering for sale a vehicle service contract in this state if the provider complies with the following requirements:
(a) Maintains, or has a parent maintain, a net worth or stockholders' equity of at least One Hundred Million Dollars ($100,000,000.00);
(b) Upon request, files with the commissioner a true and correct copy of the vehicle service contract;
(c) Upon request, files with the commissioner a copy of the provider's or the provider's parent company's most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission within the preceding calendar year. If the provider or the provider's parent company does not file with the Securities and Exchange Commission, the provider, upon request, shall file with the commissioner a copy of the provider's or the provider's parent company's audited financial statements showing a net worth of the provider or its parent company of at least One Hundred Million Dollars ($100,000,000.00). If the provider's parent company's Form 10-K, Form 20-F or audited financial statements are filed to show that the provider meets the financial requirements of this section, the parent company shall agree to guarantee the obligations of the provider relating to service contracts sold by the provider in this state.
(2) If a provider complies with the requirements of subsection (1) the provider may issue, sell or offer for sale in this state vehicle service contracts and such contracts shall not be subject to the requirements of Sections 83-65-105, 83-65-107, 83-65-109 and subsections (2)(a) and (b) of Section 83-65-111.
SECTION 2. This act shall take effect and be in force from and after July 1, 2011.
