Senate Bill 2682

AN ACT TO AMEND SECTION 83-33-1, MISSISSIPPI CODE OF 1972, TO ALLOW ANY LEGAL ENTITY AUTHORIZED TO EXIST UNDER MISSISSIPPI LAW TO ENTER INTO AND EXCHANGE RECIPROCAL CONTRACTS; TO AMEND SECTION 83-33-3, MISSISSIPPI CODE OF 1972, TO ALLOW THE ATTORNEY TO BE A LIMITED LIABILITY COMPANY; TO AMEND SECTION 83-33-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE DECLARATION SHALL SET FORTH THE NAME AND PRINCIPAL OFFICE ADDRESS OF THE RECIPROCAL AND THE NAME AND PRINCIPAL OFFICE ADDRESS OF THE ATTORNEY IN FACT OF THE RECIPROCAL; TO REDUCE THE NUMBER OF SEPARATE RISKS REQUIRED FROM 75 TO 10; TO AMEND SECTION 83-33-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE RECIPROCAL MAY SUE OR BE SUED IN ITS OWN NAME; TO PROHIBIT SUBSCRIBERS FROM BEING SUED; TO AMEND SECTION 83-33-11, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT THE SURPLUS AND RESERVE REQUIREMENTS FOR A RECIPROCAL ARE THE SAME AS A STOCK COMPANY; TO AMEND SECTION 83-33-13, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT THE RECIPROCAL MUST FILE THE REQUIRED ANNUAL STATEMENT; TO AMEND SECTION 83-33-15, MISSISSIPPI CODE OF 1972, TO CLARIFY THE TERM COMMISSIONER OF INSURANCE; TO AMEND SECTION 83-33-17, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT THE INSURANCE LICENSE WILL BE HELD BY THE RECIPROCAL AND NOT THE ATTORNEY IN FACT; TO AMEND SECTION 83-33-19, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT THE RECIPROCAL MUST PAY THE TAX ON PREMIUM RECEIPTS; TO CREATE NEW SECTION 83-33-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT EVERY SUBSCRIBER MAY EXECUTE A SUBSCRIBER'S AGREEMENT AND POWER OF ATTORNEY; TO PROVIDE THAT IF A DOMESTIC RECIPROCAL REQUIRES EXECUTION THEN THE SUBSCRIBER IS BOUND BY THE EXECUTED AGREEMENT; TO PROVIDE THAT IF THE DOMESTIC RECIPROCAL DOES NOT REQUIRE EXECUTION, THEN THE SUBSCRIBER IS BOUND BY THE AGREEMENT APPROVED BY THE COMMISSIONER OF INSURANCE; TO CREATE NEW SECTION 83-33-23, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR A BOARD OF DIRECTORS TO GOVERN A RECIPROCAL; TO CREATE NEW SECTION 83-33-25, MISSISSIPPI CODE OF 1972, TO AUTHORIZE RECIPROCALS TO RETURN TO ITS SUBSCRIBERS ANY SAVINGS OR CREDITS ACCRUING TO THEIR ACCOUNTS; TO CREATE NEW SECTION 83-33-27, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A DOMESTIC RECIPROCAL MAY APPLY FOR AND SHALL RECEIVE A CERTIFICATE OF NONASSESSABILITY ALLOWING IT TO ISSUE NONASSESSABLE POLICIES IF IT HAS AND MAINTAINS A MINIMUM SURPLUS AT LEAST EQUAL TO THE MINIMUM CAPITAL AND SURPLUS REQUIRED OF A DOMESTIC STOCK INSURER; TO CREATE NEW SECTION 83-33-29, MISSISSIPPI CODE OF 1972, TO PROHIBIT DOMESTIC RECIPROCALS THAT HAVE NOT BEEN ISSUED A CERTIFICATE ALLOWING FOR THE ISSUANCE OF NONASSESSABLE POLICIES FROM ISSUING SUCH POLICIES; TO PROVIDE THE CONTINGENT ASSESSMENT LIABILITY REQUIREMENTS; TO CREATE NEW SECTION 83-33-31, MISSISSIPPI CODE OF 1972, TO PROVIDE REQUIREMENTS FOR COMPUTATION AND TIMING OF ASSESSMENTS; TO CREATE NEW SECTION 83-33-33, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT SUBSCRIBERS ARE NOT PERSONALLY LIABLE FOR THE PAYMENT OF A RECIPROCAL'S DEBTS OR OBLIGATIONS; TO CREATE NEW SECTION 83-33-35, MISSISSIPPI CODE OF 1972, TO CLARIFY LICENSING REQUIREMENTS OF EMPLOYEES AND AGENTS OF A RECIPROCAL AND ITS ATTORNEY; TO CREATE NEW SECTION 83-33-37, MISSISSIPPI CODE OF 1972, TO ALLOW TWO OR MORE RECIPROCALS TO COMBINE INTO ONE RECIPROCAL IF APPROVED BY THE COMMISSIONER OF INSURANCE; AND FOR RELATED PURPOSES.

In the Senate

• Videt Carmichael

  Sponsor

• House of Representatives floor amendmentAdopted

  Adopted Mar 12

l9n doesn't hold this bill's text yet.

In the Senate Jan 21 – Feb 7

1. Jan 21Referred to the Senate committee on Insurance
2. Jan 30Reported from committee in the Senate: title sufficient, do pass as a committee substitute
3. Feb 7Committee substitute adopted in the Senate
4. Passed the Senate

In the House of Representatives Feb 8 – Feb 28

1. Feb 8Sent to the House
2. Feb 20Referred to the House committee on Insurance
3. Feb 26Reported from committee in the House: title sufficient, do pass
4. Feb 28Passed the House

To the Governor Feb 28 – Mar 28

1. Feb 28Motion in the House to reconsider entered (Chism and Buck (5th))
2. Mar 12Reconsidered in the House
3. Amended in the House
4. Passed the House as amended
5. Mar 13Returned to the Senate to concur in the House's amendments
6. Mar 28Died on the calendar in the Senate