Mississippi State Guidelines

Relevant State Departments of Insurance Contact Info

Mississippi Insurance Department –
1001 Woolfolk State Office Building
501 North West Street
Jackson, MS 39201
601-359-3569

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Summary of the State:

    • Support
    • Oppose
    • Neutral
    • TBA
    • Summary Verbiage

TYPE OF LICENSE: LIFE SETTLEMENT (USES VIATICAL TERMINOLOGY)

WHAT DOES THE STATE DEFINE AS CONTESTABLE?: N/A

WHAT IS THE REQUIRED HOLDING PERIOD?: N/A

WHEN DOES LICENSE NEED TO BE RENEWED?: Miss. Code Ann. § 83-7-205(4). Licenses may be renewed from year to year on January 1 upon payment of the annual renewal fees which shall be the same as the application fees. Failure to pay the fees by the renewal date results in expiration of the license.

IS BROKER COMPENSATION DISCLOSURE REQUIRED?: NO

IS THERE A MINIMUM PAYMENT REQUIREMENT?: YES. Reg. 2000-1. Section 5. Standards for Evaluation of Reasonable Payments.

In order to assure that viators receive a reasonable return for viaticating an insurance policy, the following shall be minimum discounts:

Insured’s Life Expectancy / Minimum Percentage of Face Value Less Outstanding Loans Received by Viator

          • Less than 6 months / 80%
          • At least 6 but less than 12 months / 70%
          • At least 12 but less than 24 months / 65%
          • At least 24 but less than 30 months / 55%
          • At least 30 but less than 42 months / 50%

The percentage may be reduced by five percent (5%) for viaticating a policy written by an insurer rated less than the highest [4] categories by A.M. Best, or a comparable rating by another rating agency.

WHEN DOES THE MONEY NEED TO BE IN ESCROW?: Miss. Code Ann. § 83-7-217(4). Immediately upon the viatical settlement provider’s receipt of documents to effect the transfer of the insurance policy, the viatical settlement provider shall pay the proceeds of the viatical settlement to an escrow or trust account in a state or federally chartered financial institution whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The account shall be managed by a trustee or escrow agent independent of the par-ties to the contract. The trustee or escrow agent shall transfer the proceeds to the viator immediately upon the viatical settlement provider’s receipt of acknowledgment of the transfer of the insurance policy.

IS THERE A NOTICE REQUIREMENT TO THE INSURED AFTER THE SALE?: NO

IS THERE A NOTICE REQUIREMENT TO THE CARRIER BEFORE/AFTER THE SALE?: NO

WHAT IS THE RESCISSION PERIOD?: Miss. Code Ann. § 83-7-217(3). All viatical settlement contracts entered into in this state shall provide the viator with an un-conditional right to rescind the contract for at least fifteen (15) calendar days from the receipt of the viatical settlement proceeds. If the insured dies during the rescission period, the viatical settlement contract shall be deemed to have been rescinded, subject to repayment to the viatical settlement provider of all viatical settlement proceeds.

IS THERE A VOC REQUIREMENT (OWN/STATE/NAIC FORM)?: YES – STATE or OWN – State Approved. See: Reg. 2000-1 (Sec. 10(B)) and Reg. 2000-1 (Appendix C).

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