5 Miss. Code. R. 3-1.3 - Insurance: General
1. All insurance
policies issued by or through a Licensee or an agent of a Licensee shall be
written only through insurance companies authorized to do business in the State
of Mississippi and only through an insurance agent or broker licensed by the
State of Mississippi. Only licensed agents or brokers shall solicit sales of
insurance coverage. The insurance license of the agent or broker shall be
current and conspicuously posted in the Licensee's office.
2. A Licensee shall not require additional
insurance from or procure additional insurance for the borrower if the borrower
furnishes to the lender evidence of insurance sufficient to protect the full
amount of the lender's lien. Such evidence shall indicate that the premium has
been paid and the certificate of insurance shall name the Licensee as loss
payee.
3. A Licensee shall accept
properly endorsed pre-existing insurance policies owned by the borrower at the
time of the making of a loan.
4.
Each Licensee shall maintain in its licensed office a copy of all insurance
policies issued. Records for all policies issued by or through the Licensee or
an agent of Licensee, shall indicate the name and address of the insurance
company and the insured borrower, name of second beneficiary, type of
insurance, premium amount, amount of coverage, term of policy, and any property
covered by such policy.
5. Each
Licensee shall maintain a file in its licensed office containing all pertinent
information regarding claims made under any insurance sold with proof of
payment made to or on behalf of the borrower or designated beneficiary, or a
signed receipt from the borrower or beneficiary acknowledging receipt of
payment.
6. A copy of all
documentation including the initial claim worksheet and all correspondence
pertaining to an insurance claim shall be maintained for twenty-four (24)
months after the date of the final transaction.
7. An original copy of the policy or
certificate shall be given to the borrower and a copy shall be retained in the
borrower's loan file.
8. A licensee
shall maintain documentation of all insurance rates approved by the Mississippi
Department of Insurance.
9. In the
event of a loss, the Licensee shall, upon being notified by the borrower of
such loss, promptly report such fact to the insurance company and when
requested by the borrower, advise and assist the borrower in completing the
necessary forms to report to the insurance company or its designated claim
agent or representative. The Licensee shall exercise reasonable efforts to
insure that such claim is processed without undue delay in accordance with the
terms of the policy.
10. In the
event of the payment of a loan in full one or more months prior to the maturity
date, whether by cash, new loan renewal, or refinancing, the insurance
policy(s) or certificates shall be cancelled and the borrowers shall be
entitled to a refund of the unearned portion (in excess of $2.00) of the
premium on any property insurance written through the Licensee. Such refund
shall be calculated under the Rule of 78's, unless the policy or certificate
calls for a greater refund amount. Calculations shall be based from the date of
the loan to the date the loan is paid-off In calculating a Rule of 78's refund,
one (1) day shall constitute a full month earned.
Notes
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