19 Miss. Code. R. 2-12.02 - Regulation of Refunds to Beneficiaries

A. Each claim shall be settled pursuant to the insurance contract on file with the Mississippi Department of Insurance; this means that in cases where there is a second beneficiary, any excess proceeds after settling the claim with the first beneficiary shall be paid to the second beneficiary. If the insurance contract on file with the Department of Insurance does not comply with this regulation, then the insurance company shall file a new contract that complies with all provisions of this regulation.

B. The Mississippi Department of Insurance will consider any non-paymentto the second beneficiary a violation of the insurance laws and regulations of this State by the insurance company.

C. Any refund owed by the insurance company shall be calculated as the date of death.

D. The insurer shall make certain that proper documentation is maintained so that a determination can be made as to whether the proper refunds and claims were paid to the proper parties and how they were calculated.

E. Pursuant to Miss. Code Ann. § 83-53-17(2)(Rev. 1991), the credit life premium is fully earned upon payment of a death claim. The unearned credit disability premium, as well as any other credit insurance premiums, other than credit life, shall be refunded on a "sum of the digits" ratio, commonly known as "Rule of 78's", when a credit life claim is paid. The insurer shall calculate the refund as of the date of death. The refund of the credit disability premium would be necessary due to the fact that after a credit life claim is made the "deceased" insured would not need a "disability" policy.

F. Pursuant to Miss. Code Ann. §§ 83-53-23(2)(b) and 83-53-23(5)(Rev.1991), whenever a company exceeds the $.80 per $100.00 of initial insured indebtedness rate at any age, the said company will have to substantiate that the rates at all ages (i.e., each age band) produce a loss ratio of a least 50%. The fore mentioned rates will not be approved by the Department of Insurance until such time as the company substantiates a loss ratio of a least 50% on all age bands. Any company that is found charging rates that exceed the $.80 per annum per $100.00 of initial insured indebtedness after the effective date of this regulation, must be able to substantiate the 50% loss ratio or either be prepared to refund any overcharges.

Notes

19 Miss. Code. R. 2-12.02

Miss. Code Ann. § 83-53-29 (Rev. 2011)