Bill Text: MS HB723 | 2012 | Regular Session | Engrossed
Bill Title: Surplus lines insurance; provide that nonadmitted policy fee shall be set at 3%.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-04-04 - Died In Committee [HB723 Detail]
Download: Mississippi-2012-HB723-Engrossed.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Insurance
By: Representative Chism
House Bill 723
(As Passed the House)
AN ACT TO AMEND SECTION 83-34-4, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE NONADMITTED POLICY FEE COLLECTED BY SURPLUS LINES INSURANCE PRODUCERS ON PREMIUMS FOR INSURANCE FROM NONADMITTED INSURERS SHALL BE A CERTAIN PERCENTAGE, INSTEAD OF A PERCENTAGE SET BY THE COMMISSIONER OF INSURANCE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-34-4, Mississippi Code of 1972, is amended as follows:
83-34-4. (1) Nonadmitted insurers shall not be assessable insurers of the association. All surplus lines insurance producers placing insurance through nonadmitted insurers shall collect from the insured and remit to the association a nonadmitted policy fee on all premiums * * * for all insurance written by such surplus lines insurance producer for a policy from a nonadmitted insurer for any and all risks in this state. By procuring or selling insurance on property in this state from a nonadmitted insurer, each surplus lines insurance producer placing insurance through a nonadmitted insurer agrees to be bound by the provisions of this chapter and to collect and remit the nonadmitted policy fee provided for herein.
(2) The nonadmitted policy fee shall be a percentage of the total policy premium but the nonadmitted policy fee shall not be considered premium and is not subject to premium taxes or commissions. However, failure to pay the nonadmitted policy fee shall be treated the same as failure to pay premium. "Total policy premium" includes taxes and commissions.
(3) The nonadmitted policy fee percentage shall be three percent (3%).
(4) Within twenty (20) days of the end of the quarter, surplus lines insurance producers placing insurance through nonadmitted insurers shall remit directly to the association all nonadmitted policy fees collected in the preceding quarter. In addition to the nonadmitted policy fee provided for herein, surplus lines insurance producers placing insurance through nonadmitted insurers shall collect and remit surcharges as provided by this chapter. Surplus lines insurance producers placing insurance through nonadmitted insurers may designate another surplus lines insurance producer that actually procured the insurance from the nonadmitted carrier to collect and remit the nonadmitted policy fees.
(5) Each insured in this state who directly procures or renews insurance with a nonadmitted insurer on properties, risks or exposures located or to be performed, in whole or in part, in this state, other than insurance procured through a surplus lines licensee, shall be subject to the nonadmitted policy fee which shall be paid by the insured according to the procedures provided for premium taxes in Section 83-21-17(5).
SECTION 2. This act shall take effect and be in force from and after July 1, 2012.
