Bill Text: MS SB2378 | 2023 | Regular Session | Introduced

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Bill Title: Reciprocal Insurance; revise provisions relating to sworn declarations and memberships of boards of directors.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2023-01-31 - Died In Committee [SB2378 Detail]

Download: Mississippi-2023-SB2378-Introduced.html

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MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Insurance

By: Senator(s) Michel

Senate Bill 2378

AN ACT TO AMEND SECTION 83-33-5, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS RELATING TO SWORN DECLARATIONS THAT ARE FILED WITH THE COMMISSIONER OF INSURANCE BY RECIPROCAL INSURANCE SUBSCRIBERS; TO AMEND SECTION 83-33-23, MISSISSIPPI CODE OF 1972, TO REVISE THE MEMBERSHIP REQUIREMENT FOR THE BOARD OF DIRECTORS OF A RECIPROCAL; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 83-33-5, Mississippi Code of 1972, is amended as follows:

     83-33-5.  Such subscribers so contracting among themselves shall, through their attorney, file with the Commissioner of Insurance a declaration verified by the oath of such attorney or, where such attorney is a corporation, by the oath of the proper officer thereof, setting forth:

          (a)  The name of the reciprocal, which name shall not be so similar to any name adopted by any insurance organization authorized to write the same class of insurance in this state as to confuse or deceive.

          (b)  The address of the reciprocal's principal office.

          (c)  The name of the attorney and address of its principal office.

          (d)  The kind or kinds of insurance to be effected or exchanged.

          (e)  A copy of the form of policy contract or agreement under or by which such insurance is to be effected or exchanged.

          (f)  A copy of the form of power of attorney or other authority of such attorney under which such insurance is to be effected or exchanged.

          (g)  The location of office or offices from which such contracts or agreements are to be issued.

 * * *  (h)  That applications have been made for indemnity upon at least ten (10) separate risks aggregating not less than One Million Five Hundred Thousand Dollars ($1,500,000.00), as represented by executed contracts or bona fide applications to become concurrently effective; or in case of employers' liability or similar classes of insurance, covering a total payroll of not less than Two Million Five Hundred Thousand Dollars ($2,500,000.00).

          ( * * *ih)  That there is in the possession of such attorney and available for the payment of losses, assets conforming to Section 83-33-11.

          ( * * *ji)  A financial statement in form prescribed for the annual statement.

     SECTION 2.  Section 83-33-23, Mississippi Code of 1972, is amended as follows:

     83-33-23.  The board of directors for the reciprocal shall have and exercise the ultimate power over the control and management of the affairs of the reciprocal, subject to the subscriber's agreement.  The board of directors shall be selected under rules adopted by the subscribers. * * *At least two‑thirds (2/3) of the board of directors of a domestic reciprocal shall be composed of subscribers or representatives of subscribers, other than the attorney or any person employed by or having a financial interest in the attorney.  An individual shall not be considered to be employed by or having a financial interest in the attorney if such individual is a subscriber or a representative of a subscriber of the reciprocal.  The board of directors may also be referred to as a subscribers advisory committee, board of trustees or by such other name as the board chooses.

     SECTION 3.  This act shall take effect and be in force from and after its passage.

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