Bill Text: MS HB1381 | 2022 | Regular Session | Introduced
Bill Title: Life insurance policy; require policy loans to have a fixed rate.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2022-02-01 - Died In Committee [HB1381 Detail]
Download: Mississippi-2022-HB1381-Introduced.html
MISSISSIPPI LEGISLATURE
2022 Regular Session
To: Insurance
By: Representative Arnold
House Bill 1381
AN ACT TO AMEND SECTION 83-7-26, MISSISSIPPI CODE OF 1972, TO REQUIRE LIFE INSURANCE POLICIES TO ONLY OFFER FIXED RATE POLICY LOANS; TO REQUIRE THE RATE TO BE IN EXPLICIT BOLD PRINT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-7-26, Mississippi Code of 1972, is amended as follows:
83-7-26. (1) A life
insurance policy which provides for policy loans shall contain a provision * * *
permitting a maximum interest rate of not more than
eight percent (8%) per annum * * *, which must be a fixed rate.
* * *
( * * *2) The life insurer shall * * *
notify the policyholder, in explicit bold print, of the * * * fixed rate of interest on the
loan at the time a cash loan is made.
* * *
( * * *3) The pertinent provisions of * * * subsection (1) * * * of this section shall be set forth in
substance in the policies to which they apply.
( * * *4) For purposes of this section:
(a) The rate of interest on policy loans permitted under this section includes the interest rate charged on reinstatement of policy loans for the period during and after any lapse of a policy.
(b) The term "policy loan" includes any premium loan made under a policy to pay one or more premiums that were not paid to the life insurer as they fell due.
(c) The term "policyholder" includes the owner of the policy or the person designated to pay premiums as shown on the records of the life insurer.
(d) The term "policy" includes certificates issued by a fraternal benefit society and annuity contracts which provide for policy loans.
( * * *5) No other law of this state shall
apply to policy loan interest rates unless made specifically applicable to such
rates.
( * * *6) The provisions of this section
shall not apply to any insurance contract issued before January 1, 1984.
SECTION 2. This act shall take effect and be in force from and after July 1, 2022.