Bill Text: MS HB1146 | 2016 | Regular Session | Introduced
Bill Title: Premium Finance Companies; revise certain laws regarding.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2016-02-23 - Died In Committee [HB1146 Detail]
Download: Mississippi-2016-HB1146-Introduced.html
MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Banking and Financial Services
By: Representative Bell (65th)
House Bill 1146
AN ACT TO PROVIDE THAT AN INSURANCE AGENT OR BROKER SHALL NOT BE LIABLE TO A PREMIUM FINANCE COMPANY FOR ANY DEBTS OF AN INSURED OWED TO THE PREMIUM FINANCE COMPANY; TO AMEND SECTION 81-21-15, MISSISSIPPI CODE OF 1972, TO DECREASE THE MAXIMUM PERCENTAGE A PREMIUM FINANCE COMPANY MAY CHARGE ON THE UNPAID BALANCE AS A FINANCE CHARGE FROM 23% TO 10% FOR LOANS IN AN AMOUNT OF TEN THOUSAND DOLLARS OR LESS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. An insurance agent or broker shall not be liable to a premium finance company for any debts of an insured owed to the premium finance company.
SECTION 2. Section 81-21-15, Mississippi Code of 1972, is amended as follows:
81-21-15. (1) A premium finance company shall not charge, contract for, receive or collect any interest or service charge other than as permitted in this section.
(2) The interest is to be computed on the balance of the premiums due, after subtracting the down payment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance contract or as otherwise agreed to by the parties, for which the premiums are being advanced, to the date when the final installment of the premium finance agreement is payable.
(3) Notwithstanding any
provision of law to the contrary, for any loan or extension of credit in an
amount of Ten Thousand Dollars ($10,000.00) or less, made by a licensee under
this chapter, the licensee may contract for and receive any finance charge
agreed to in writing by the licensee and the insured, not to exceed * * * ten percent (10%)
per annum on the unpaid balance; however, if the loan or extension of credit is
in an amount more than Ten Thousand Dollars ($10,000.00), the licensee may
contract for and receive any finance charge agreed to in writing by the
licensee and the insured.
(4) Notwithstanding the provisions of any premium finance agreement, any insured shall receive a refund of the unearned finance charge, based on the Rule of 78's, upon the voluntary prepayment of the obligation in full or upon the cancellation of such contract. Where the amount of the refund credit is less than Three Dollars ($3.00), no refund need be made.
SECTION 3. This act shall take effect and be in force from and after July 1, 2016.
