Bill Text: MS HB819 | 2024 | Regular Session | Enrolled
Bill Title: Insurance; remove filing fee on auto cancellation or nonrenewal appeals and exempt life line applicants from prelicensing requirements.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2024-04-30 - Approved by Governor [HB819 Detail]
Download: Mississippi-2024-HB819-Enrolled.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Insurance
By: Representative Turner
House Bill 819
(As Sent to Governor)
AN ACT TO AMEND SECTIONS 83-11-17 AND 83-11-19, MISSISSIPPI CODE OF 1972, TO REMOVE THE REQUIREMENT OF A FIFTEEN DOLLAR FILING FEE IN AUTOMOBILE CANCELLATION OR NONRENEWAL APPEALS; TO AMEND SECTION 83-17-251, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM PRELICENSING REQUIREMENTS INDIVIDUALS SEEKING LICENSURE IN THE LIFE LINE OF AUTHORITY ONLY; TO AMEND SECTION 83-17-523, MISSISSIPPI CODE OF 1972, TO CLARIFY THE COMPENSATION OF A PUBLIC ADJUSTER; TO PROVIDE THAT A PUBLIC ADJUSTER SHALL NOT PARTICIPATE IN THE RECONSTRUCTION, REPAIR OR RESTORATION OF DAMAGED PROPERTY THAT IS THE SUBJECT OF A CLAIM ADJUSTED BY THE ADJUSTER; TO PROVIDE THAT A PUBLIC ADJUSTER SHALL NOT ENGAGE IN ANY ACTIVITIES THAT MAY BE REASONABLY CONSTRUED AS A CONFLICT OF INTEREST; TO PROVIDE THAT A PUBLIC ADJUSTER SHALL NOT HAVE A FINANCIAL INTEREST IN ANY SALVAGE, REPAIR OR ANY OTHER BUSINESS ENTITY THAT OBTAINS BUSINESS IN CONNECTION WITH ANY CLAIM THAT THE PUBLIC ADJUSTER HAS A CONTRACT TO ADJUST; TO PROVIDE THAT NO PUBLIC ADJUSTER SHALL BE ENTITLED TO ANY PAYMENT, COMMISSION, FEE OR OTHER THING OF VALUE OF ANY INSURANCE SETTLEMENT OR AGREED SETTLEMENT THAT WAS MADE BETWEEN THE INSURED AND THE INSURANCE COMPANY BEFORE THE PUBLIC ADJUSTER AND THE INSURED ENTERED INTO A CONTRACT FOR SERVICE; TO PROVIDE THAT IF AN INSURANCE COMPANY EXTENDS A WRITTEN SETTLEMENT OFFER TO THE INSURED BEFORE THE INSURED ENTERS INTO A CONTRACT WITH A PUBLIC ADJUSTER FOR SERVICES, THEN A PUBLIC ADJUSTER MAY ONLY BE ENTITLED TO AN AMOUNT THAT IS NO MORE THAN 10% OF THE SETTLEMENT AMOUNT THAT IS IN EXCESS OF THE AMOUNT THAT WAS OFFERED IN WRITING TO THE INSURED PRIOR TO ENTERING INTO THE CONTRACT WITH A PUBLIC ADJUSTER; TO AUTHORIZE THE COMPREHENSIVE HEALTH INSURANCE RISK POOL ASSOCIATION TO ESTABLISH AN ONLINE PORTAL TO ASSIST MISSISSIPPIANS IN SELECTING A HEALTH PLAN; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-11-17, Mississippi Code of 1972, is amended as follows:
83-11-17. 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 * * *.
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.
SECTION 2. Section 83-11-19, Mississippi Code of 1972, is amended as follows:
83-11-19. 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 * * * 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 * * *. 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.
SECTION 3. Section 83-17-251, Mississippi Code of 1972, is amended as follows:
83-17-251. (1) Every individual seeking to be licensed as an insurance producer in the State of Mississippi, as a condition of issuance of an original license, must furnish the Commissioner of Insurance certification on a form prescribed by the commissioner that he or she has completed an approved prelicensing course of study for the line of insurance requested.
(2) The prelicensing course of study hours shall consist of twenty (20) hours of approved prelicensing education courses per line of authority. The Commissioner of Insurance shall determine the content requirements for each prelicensing course of study. The prelicensing educational requirements of this section shall not apply to:
(a) An individual that is exempt from taking the written examination as provided in Section 83-17-39(1) and Section 83-17-67.
(b) An individual who has received a bachelor's degree with major coursework in insurance from an accredited institution of higher learning.
(c) An individual holding a current and valid CEBS, CHFC, CIC, CFP, CLU, FLMI, LUTCF designation is exempt for the life line of authority.
(d) An individual holding a current and valid RHU, CEBS, REBC, HIA designation is exempt for the accident and health or sickness line of authority.
(e) An individual holding a current and valid AAI, ARM, CIC, CPCU designation is exempt for the property and casualty lines of authority.
(f) Limited lines insurance producer and limited lines credit insurance producer as defined in Section 83-17-53.
(g) An individual that is seeking licensure for the variable life and variable annuity products line of authority only.
(h) An individual that is seeking licensure for the life line of authority only.
(3) Every individual seeking renewal of an insurance producer license, which has been in effect for a term of eighteen (18) months or less shall satisfactorily complete twelve (12) hours of study in approved continuing education courses. Every individual seeking renewal of an insurance producer license, which has been in effect for a term of more than eighteen (18) months shall satisfactorily complete twenty-four (24) hours of study in approved continuing education courses, of which three (3) hours shall have a course concentration in ethics.
(4) The continuing educational requirements of this section shall not apply to:
(a) Any individual that is exempt from taking the written examination as provided in Section 83-17-39(1)(b), (c), (e) and (g);
(b) Any limited lines producer or limited lines credit insurance producer;
(c) A person not a resident of this state who meets the continuing educational requirement in the state in which such person resides and Mississippi has a reciprocal agreement with that state;
(d) Nonactive agents as defined in Section 83-17-1; or
(e) Any individual who is sixty-five (65) years of age or older and who has been licensed as an insurance producer for a continuous period of twenty-five (25) years or more as of April 17, 2023, as evidenced by submission of an affidavit, under oath, on a form prescribed by the commissioner, signed by the licensee attesting to satisfaction of the age, licensing and experience requirements of this paragraph (e).
SECTION 4. Section 83-17-523, Mississippi Code of 1972, is amended as follows:
83-17-523. (1) Public adjusters shall ensure that all contracts for their services are in writing, signed by the insured and the public adjuster who solicited the contract, and a copy of the contract shall be provided to the insured upon execution. All such contracts shall be subject to the following provisions:
(a) No public adjuster shall charge, agree to, or accept as compensation any payment, commission, fee or other thing of value equal to more than ten percent (10%) of any insurance settlement or the proceeds of any claim investigated.
(b) No public adjuster shall require, demand or accept any fee, retainer, compensation, deposit or other thing of value, prior to partial or full settlement of a claim.
(c) Any costs to be reimbursed to a public adjuster out of the proceeds of a settlement shall be specified by kind and estimated amounts.
(d) A public adjuster's contract with the insured shall be revocable or cancelable by the insured without cause and without penalty or obligation for at least five (5) business days after the contract is executed by the insured. Nothing in this provision shall be construed to prevent an insured from pursuing any civil legal remedy to revoke or cancel the contract after the expiration of such cancellation period.
(e) No public adjuster may require that an insured authorize an insurer to issue a check only in the name of the public adjuster.
(f) No public adjuster shall be entitled to any payment, commission, fee or other thing of value of any insurance settlement or agreed settlement that was made between the insured and the insurance company before the public adjuster and the insured entered into a contract for services.
(g) If an insurance company extends a written settlement offer to the insured before the insured enters into a contract with a public adjuster for services, then a public adjuster may only be entitled to an amount that is no more than ten percent (10%) of the settlement amount that is in excess of the amount that was offered in writing to the insured prior to entering into the contract with the public adjuster.
(2) Public adjusters shall adhere to the following ethical requirements:
(a) No public adjuster shall undertake the adjustment of any claim for which the public adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise.
(b) No public adjuster shall, as a public adjuster, represent any person or entity whose claim the public adjuster has previously adjusted while acting as an independent adjuster representing any insurer, either directly or through an independent adjusting firm retained by the insurer.
(c) A public adjuster shall not knowingly make any oral or written material misrepresentations or statements to any insured or potential insured which are false and intended to injure any person engaged in the business of insurance.
(d) No public adjuster shall knowingly enter into a contract to adjust a residential property claim subsequent to a declaration of total loss by an insurer, unless the services to be provided by the public adjuster can reasonably be expected to result in the insured obtaining an insurance settlement, net of the public adjuster's compensation, in excess of the amount the insured would have obtained without the services of the public adjuster.
(e) A public adjuster shall advise each insured that the insured has the right to retain an attorney at law of his choice throughout the public adjuster's investigation and adjustment of the claim.
(f) If the claim is not settled by the public adjuster, the public adjuster shall advise the insured that the insured has the right to retain an attorney at law of his choice.
(g) No public adjuster shall contract for, agree to, or receive anything of value from any attorney at law or other person acting in concert with any attorney at law (i) for referring claims to the attorney, or (ii) in connection with any claim for which the public adjuster has performed or intends to perform services.
(h) No public adjuster shall split any attorney's fee with any attorney at law.
(i) A public adjuster shall not testify as an expert witness in any judicial or administrative proceeding while maintaining a pecuniary interest in the outcome of the proceeding, as otherwise permitted by Section 83-17-523(1)(a); provided, however, that a public adjuster may testify as an expert witness if pursuant to the terms of his contract his compensation is converted to a specified hourly rate, which rate (i) is subject to such limitations as may be prescribed by the commissioner, and (ii) is not subject to any contingencies. In the event of a conversion of the public adjuster's contract to an hourly rate agreement, the prior fee arrangement shall be inadmissible at trial.
(j) A public adjuster shall not participate, directly or indirectly, in the reconstruction, repair or restoration of damaged property that is the subject of a claim adjusted by the adjuster.
(k) A public adjuster shall not engage in any activities that may be reasonably construed as a conflict of interest, including, directly or indirectly, soliciting or accepting any remuneration of any kind or nature.
(l) A public adjuster shall not have a financial interest in any salvage, repair or any other business entity that obtains business in connection with any claim that the public adjuster has a contract to adjust.
SECTION 5. The Comprehensive Health Insurance Risk Pool Association shall have the authority to develop and fund an online portal that shall be available to all Mississippians to assist consumers in selection of a health plan. This program shall have the capacity to aggregate information regarding providers, drug coverage and pricing that would allow consumers to make informed decisions in selecting a health plan.
SECTION 6. This act shall take effect and be in force from and after July 1, 2024.
