§ 83-23-101. Title
This article shall be known and may be cited as the Mississippi Insurance Guaranty Association Law.
§ 83-23-103. Purpose
The purpose of this article is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide […]
§ 83-23-105. Application of article; exceptions
This article shall apply to all kinds of direct insurance except the following: Life, annuity, health or disability insurance; Mortgage guaranty, financial guaranty or other forms of insurance offering protection against insolvent risks; Fidelity or surety bonds, or any other bonding obligations; Credit insurance; Insurance of warranties or service contracts; Title insurance; Ocean marine insurance; […]
§ 83-23-107. Construction
This article shall be liberally construed to effect the purpose under Section 83-23-103, which shall constitute an aid and guide to interpretation.
§ 83-23-109. Definitions
As used in this article: “Affiliate” means a person who directly, or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with an insolvent insurer on December 31 of the year next preceding the date the insurer becomes an insolvent insurer. “Association” means the Mississippi Insurance Guaranty Association created […]
§ 83-23-111. Creation of the association
There is created a nonprofit unincorporated legal entity to be known as the Mississippi Insurance Guaranty Association. All insurers defined as member insurers in Section 83-23-109 shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its functions under a plan […]
§ 83-23-113. Board of directors
The board of directors of the association shall consist of not less than five (5) nor more than nine (9) persons, serving terms as established in the plan of operation. The members of the board shall be selected by member insurers, subject to the approval of the commissioner. Vacancies of the board shall be filled […]
§ 83-23-115. Powers and duties of association
The association shall: Be obligated to the extent of the covered claims existing prior to the determination of insolvency and arising within thirty (30) days after the determination of insolvency, or before the policy expiration date if less than thirty (30) days after the determination, or before the insured replaces the policy or causes its […]
§ 83-23-117. Plan of operation
The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon approval in writing by the commissioner. If at any time the association fails to […]
§ 83-23-119. Duties and powers of the commissioner
The commissioner shall: Notify the association of the existence of an insolvent insurer not later than three (3) days after he receives notice of the determination of the insolvency. Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer. The commissioner may: […]
§ 83-23-121. Assignment of rights to association; effect of paid claims
Any person recovering under this article shall be deemed to have assigned his rights under the policy to the association to the extent of his recovery from the association. Every insured or claimant seeking the protection of this article shall cooperate with the association to the same extent as such person would have been required […]
§ 83-23-123. Nonduplication of recovery
Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first his right under such policy. Any amount payable on a covered claim under this article shall be reduced by the […]
§ 83-23-125. Prevention of insolvencies
To aid in the detection and prevention of insurer insolvencies: It shall be the duty of the board of directors, upon majority vote, to notify the commissioner of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public. The board of directors may, upon […]
§ 83-23-127. Examination of the association
The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner.
§ 83-23-129. Tax exemption
The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real or personal property.
§ 83-23-131. Recognition of assessments in rates
The rates and premiums charged for insurance policies to which this article applies may include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association. Such rates shall not be deemed excessive because they contain an […]
§ 83-23-133. Immunity
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association, its agents or employees, the board of directors, or the commissioner or his representatives for any action taken or any failure to act by them in the performance of their […]
§ 83-23-135. Stay of proceedings; access to insolvent insurer’s records
All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall be stayed for six (6) months and for such additional time thereafter as may be determined by the court from the date the insolvency is determined or an ancillary proceeding is […]
§ 83-23-137. Proposal for disbursal of assets of insolvent insurer; application for approval
Within one hundred twenty (120) days of a final determination of insolvency of an insurer by a court of competent jurisdiction, the receiver, liquidator or statutory successor shall make application to the court for approval of a proposal to disburse assets out of such insurer’s marshalled assets, from time to time as such assets become […]