Bill Text: MS SB2889 | 2011 | Regular Session | Introduced

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Bill Title: Life insurance companies; prohibit payout to beneficiary by depositing proceeds into checking account.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2011-02-01 - Died In Committee [SB2889 Detail]

Download: Mississippi-2011-SB2889-Introduced.html

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MISSISSIPPI LEGISLATURE

2011 Regular Session

To: Insurance

By: Senator(s) Baria

Senate Bill 2889

AN ACT TO PROHIBIT ANY LIFE INSURANCE COMPANY FROM PAYING A BENEFICIARY OF A LIFE INSURANCE POLICY BY DEPOSITING THE PROCEEDS INTO A CHECKING ACCOUNT CONTROLLED BY THE INSURER, EVEN IF THE ACCOUNT IS IN THE BENEFICIARY'S NAME; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  The following shall be codified as a separate section within Chapter 7, Title 83, Mississippi Code of 1972:

     83-7-  .  It shall be unlawful for any life insurance company to pay a beneficiary of a life insurance policy by depositing the proceeds into a checking account controlled by the insurer, even if the account is in the beneficiary's name.  Nothing in this section shall prevent an insurer from utilizing a direct deposit or wire transfer procedure to deposit proceeds into an account of a beneficiary that is not controlled by the insurer so long as the beneficiary makes such request. 

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2011.