MCA Chapter 37

in effect

Miss. Code Ann. § 83-37-1 Unlawful unless organized under this chapter.

It shall be unlawful for any person, firm, association, church burial club or association, or corporation to engage in the business of a burial association or to make contracts in advance of death to bury or to pay the funeral expenses of any person or persons or to make contracts in advance of death to pay any person or persons a sum of money in lieu of funeral expenses except under the conditions hereafter set out. If a church burial club or association enters into any kind of informal agreement or understanding, written or otherwise, to pay for funerals of its members and if it collects premiums, contributions, or any other funds therefor in competition with other burial associations, it shall come under the above definition of a burial association and be subject to all the provisions of this chapter. The secretary, treasurer, secretary-treasurer, or any other officer, by whatever name called, who handles the funds for the purposes set forth in this section shall be required to file annual reports, as required by Section 83-37-19, Mississippi Code of 1972; and failure to file such annual reports or knowingly making any false statement in the reports required shall be punished as provided by Section 83-37-29, Mississippi Code of 1972.

Miss. Code Ann. § 83-37-3 Method of organization.

Any person, firm, or association desiring to engage in the business above set out shall apply to the insurance commissioner of the State of Mississippi for a permit or license; file with the said commissioner a copy or statement in writing of the plan on which he or they propose to operate such business, the forms of all such contracts as he or they propose to make and enter into, the residence and post-office address of any such person, firm, or association, the rates to be charged, which rates shall in all cases be subject to the approval of the insurance commissioner except in cases where burial associations operate under a mutual benefit plan, and the names of all persons interested in such business other than members with whom contracts are made to pay burial expenses; and shall secure from the insurance commissioner of this state annually a license to engage in said business before engaging therein. Any corporation desiring to engage in the business above set out shall comply with all of the conditions of this section and, furthermore, be incorporated or admitted to do business as hereinafter provided.

Miss. Code Ann. § 83-37-5 Articles of incorporation; restriction on formation of new companies.

Until July 1, 1996, companies may be formed and organized to engage in the business herein mentioned with a capital stock of not less than Five Thousand Dollars ($5,000.00). The proposed incorporators, a majority of whom must be residents of the state, and not less than three (3), shall subscribe articles of incorporation in which shall be stated: The proposed corporate name of the company, which shall not so closely resemble the name of any corporation already transacting business in this state as to mislead the public or lead to confusion; The purpose for which it was formed and the business plan or principle of the operation of its business; The names, residences and official titles of all the officers who are to have and exercise the general control and management of the affairs and the funds of the corporation; The domicile of the proposed corporation; The amount of the capital stock. The charter or articles of incorporation shall be approved by the Insurance Commissioner, and a certificate of approval shall be executed by the commissioner. The charter as thus approved shall be recorded in the Office of the Insurance Commissioner of this state and shall also be recorded in the Office of the Secretary of State. After July 1, 1996, no new companies may be formed and organized to engage in the business mentioned herein. No companies formed and organized to engage in the business herein mentioned may be sold, transferred or exchanged without prior approval of the Commissioner of Insurance. Before approval by the commissioner is granted, the commissioner shall verify and require that the company has an enforceable agreement with a duly licensed funeral service establishment pursuant to Section 73-11-55 to service the policies, contracts or certificates of the company; however, there shall be no reduction in benefits paid under the policy if the policyholder is affected by a merger or assumption and elects not to use the funeral home so designated under the assumption agreement.

Miss. Code Ann. § 83-37-7 Foreign corporations admitted.

Any foreign corporation organized to engage in the business of a burial association may be admitted to do business in this state on the following conditions: It shall deposit with the Commissioner of Insurance a certified copy of its charter and a statement of its financial condition and business in such form and detail as he may require, signed and sworn to by its president and secretary or other proper officer, and shall pay for the filing of such statement the sum of Twenty Dollars ($20.00). It shall satisfy the commissioner that it is fully and legally organized under the laws of its state or government to do the business it proposes to transact and that it has a fully paid up and unimpaired capital of not less than Five Thousand Dollars ($5,000.00). After July 1, 1996, no foreign corporation organized to engage in the business of a burial association or unincorporated Class A burial association shall be admitted to do business in this state. It shall, by duly executed instrument filed in his office, constitute and appoint the Commissioner of Insurance and his successor its true and lawful attorney upon whom all process in any action or legal proceeding against it may be served, and therein shall agree that any process against it which may be served upon its attorney shall be of the same force and validity as if served on the company; and the authority thereof shall continue in force irrevocable so long as any liability of the company remains outstanding in this state. The service of such process shall be made by leaving a copy of the same in the hands or office of the commissioner. Copies of such instrument certified by the commissioner shall be deemed sufficient evidence thereof, and service upon such attorney shall be deemed sufficient service upon the principal. It shall appoint as its agent or agents in this state some resident or residents thereof other than the commissioner, such appointment to be made in writing, signed by the president and secretary or manager or general agent, and filed in the office of the commissioner, authorizing the agent to acknowledge service of process for and on behalf of the company, and consenting that service of process on the agent shall be as valid as if served upon the company, according to the laws of this state, and waiving all claim of error by reason of such service. It shall obtain from the commissioner a certificate that it has complied with the laws of the state and is authorized to make contracts authorized hereunder.

Miss. Code Ann. § 83-37-9 Corporate contract forms and rate schedules to be filed.

Any domestic or foreign corporation engaging in the business set forth herein shall also file with the insurance commissioner sample forms of all such contracts as it proposes to make and enter into and the rates to be charged, and shall secure from the insurance commissioner of this state annually a license to engage in said business before engaging therein, in like manner as if such corporation were a person, firm, or association as hereinabove set forth.

Miss. Code Ann. § 83-37-11 Classes of burial associations.

Before engaging in said business, any such person, firm, association, or corporation, both foreign and domestic, shall deposit with the Treasurer of the State of Mississippi such securities as may be approved by the Commissioner of Insurance, consisting of certificates of deposit or bonds of the United States, of the State of Mississippi, or of any county, municipality, levee district, or road district in this state. The securities so deposited shall be not less than par value of Five Hundred Dollars ($500.00) for each One Hundred Twenty-five Thousand Dollars ($125,000.00), or fraction thereof, of face value and in-force certificates. Any such person, firm, association, or corporation organized under this section may issue contracts or burial certificates in amounts not to exceed One Hundred Fifty Dollars ($150.00), provided said person, firm, association, or corporation deposits securities with the Treasurer of the State of Mississippi according to the schedule set out heretofore, with a minimum deposit of not less than One Thousand Dollars ($1,000.00) par value. Said person, firm, association, or corporation organized under this section may also issue contracts or burial certificates in amounts not to exceed Three Hundred Dollars ($300.00), provided said person, firm, association, or corporation deposits securities with the Treasurer of the State of Mississippi according to the schedule set out heretofore, with a minimum deposit of not less than Two Thousand Dollars ($2,000.00) par value. Said person, firm, association, or corporation organized under this section may also issue contracts or burial certificates in amounts not to exceed Four Hundred Fifty Dollars ($450.00), provided said person, firm, association, or corporation deposits securities with the Treasurer of the State of Mississippi according to the schedule set out heretofore, with a minimum deposit of not less than Three Thousand Dollars ($3,000.00) par value. Any such person, firm, association, or corporation who prior hereto had on deposit with the Treasurer of the State of Mississippi the maximum amount of securities heretofore required shall not be required to deposit additional securities except on the net increase in liability of in-force certificates issued after January 1, 1974. No individual benefit shall exceed the sum of Four Hundred Fifty Dollars ($450.00) unless said benefit in excess of Four Hundred Fifty Dollars ($450.00) is written on a schedule of rates approved by the State Commissioner of Insurance, and unless said contract specifically stipulates that anyone insured thereunder may receive in cash at his or her option the face value thereof; and with the further provision that any and all burial certificates in excess of Four Hundred Fifty Dollars ($450.00) shall come under and be subject to all the qualifications and all provisions of law governing life insurance contracts and policies in the State of Mississippi. All contracts issued by a person, firm, association, or corporation of any of the above classifications will be issued in amounts of One Hundred Fifty Dollars ($150.00), Three Hundred Dollars ($300.00), or Four Hundred Fifty Dollars ($450.00) only. The provisions of this subsection shall not apply to funeral benefit certificates already in force in excess of Four Hundred Fifty Dollars ($450.00). No person, firm, association, or corporation shall write or issue a paid-up certificate. A surety bond made by some company authorized to do business in Mississippi for an amount equal to twice the amount of securities required above may be filed with the Treasurer, after approval by the insurance department, in lieu of the other securities above referred to.

Miss. Code Ann. § 83-37-12 Buyer’s guide.

Each policy or contract or certificate issued under Section 83-37-11 shall have attached a buyer’s guide which shall be developed by the Commissioner of Insurance and shall contain a definition of the burial contract, its provisions, its benefits and notice of the freedom of choice as provided by Section 83-37-13.

Miss. Code Ann. § 83-37-13 Standard contract provisions.

Contracts written under the provisions of Section 83-37-11 must first be approved by the commissioner of insurance and must be substantially in the following form and language; any variation thereof shall in no manner be less favorable to the insured than the form and language prescribed herein. All policies written under authority of Section 83-37-11 shall contain the standard provisions hereinafter enumerated: “STANDARD PROVISIONS” “(1) The association will not be responsible for casket or any other funeral supplies or expenses contracted for by anyone unless authorized by the association, subject to minimum cash settlement hereinafter provided. “(2) When this policy has been maintained in force for not less than two (2) consecutive months, there will be a grace period of thirty (30) days for the payment of any subsequent premium; and during such period of grace, the funeral benefit provided herein shall continue in force, provided all other conditions and stipulations herein contained shall have been complied with by such member or members. “(3) This contract shall lapse, and the association shall not be liable for any benefits hereunder, when any premium payment on same is more than thirty (30) days in arrears; and in such event all premiums paid hereon shall be forfeited to the association. “(4) If the contract is allowed to lapse, it may be reinstated by furnishing the association with satisfactory evidence that all members named hereon are in good health, and by the payment of the premiums required by the association, provided the policy is not over six (6) months in arrears. Acceptance of premium as of date of lapse shall reinstate the contract as of date premium is applied on lapse period. “(5) No agent has the power on behalf of the association to modify this contract or to extend the time for payment of premium, the entire contract being that contained herein, together with the application thereof. “(6) The association reserves the right to investigate within one (1) year from date of application all statements made in the application as to age or condition of health, and should any of the statements made therein be found to be false, the association’s liability shall be limited to the return of all premiums paid hereon, and the policyholder shall forfeit all rights to the funeral benefits. All applicants must be in good health when this contract is delivered. “(7) This contract shall be incontestable after one (1) year, except for nonpayment of premiums. “(8) If death and/or burial occurs more than fifty (50) miles from any location of the funeral home named herein and should the beneficiary therefore deem it impractical for the association to service this contract, the association shall pay in cash to the member not less than fifty percent (50%) of the face value of the certificate to which the member is entitled or the full return of the premium paid by the member, not to exceed three-fourths percent (3/4%) of the face value of the certificate, whichever amount is larger. Provided, however, if premium rates of not less than ten percent (10%) in excess of the rates described herein are requested by the association and approved by the commissioner, the standard provisions contained in this paragraph may provide for a cash settlement up to one hundred percent (100%) of the face value of the contract. If death and/or burial occurs within fifty (50) miles of any location of the funeral home named herein, and the member desires to use a funeral home other than the funeral home named in this contract, the association’s liability shall be the full return of the premium paid by the member not to exceed the face value of the certificate. “(9) There shall be no liability to any person or persons insured hereunder if death should occur through self-destruction or suicide, whether sane or insane, within one (1) year from date of issuance of this contract, or within one (1) year from the date of any reinstatement. In the event of death by suicide or self-destruction, no return of premium shall be due under this contract.”

Miss. Code Ann. § 83-37-15 Conditions for certain contracts.

A burial association may enter into burial insurance contracts with citizens of this state in a face amount of not less than Two Hundred Fifty Dollars ($250.00) nor more than Five Hundred Dollars ($500.00) for the funeral of any one person to be paid by any such burial association, subject to strict compliance with the following requirements as an absolute condition precedent to any such policy or contract being written or in force in this state: Such a burial association must be incorporated under the provisions of this chapter, and at least Twenty-five Thousand Dollars ($25,000.00) in capital stock paid up before the commencement of business by any such corporation may be authorized. Only contracts with uniform benefits may be written, which must be first approved by the commissioner of insurance, and such contracts may be written on a basis of payment of premiums for life or, alternatively, to be paid up in not less than fifteen (15) years after date of issuance. Contract benefits shall be limited to applying the face amount of the contract toward the retailed value of funeral merchandise and service; however, such contracts may provide for cash settlement benefits. The commissioner of insurance shall require compliance with minimum premium rates governing the payment of premiums on burial insurance contracts issued under the alternative plans provided in subsection (b) of this section, and any such corporation willfully collecting rates less than those so prescribed shall have its license cancelled and revoked in accordance with the provisions of this chapter. For continuing to do business thereafter, such corporation shall be enjoined therefrom in a court of competent jurisdiction. The commissioner of insurance shall promulgate such rules and regulations as may be necessary or advisable in order to carry out the provisions of Sections 83-37-11 through 83-37-17 insofar as the same shall not conflict herewith, and shall make examinations as required of domestic life insurance companies. No corporation shall write or issue a paid-up certificate except as provided in the cited sections. Securities shall be deposited with the state treasurer equal to one half (1/2) of the capital stock of such companies and associations, and securities covering reserve liabilities shall likewise be deposited with the state treasurer in the amounts and manner as is now required of domestic life insurance companies.

Miss. Code Ann. § 83-37-17 Premium taxes.

Those burial associations operating under the provisions of Section 83-37-11 shall not be required to pay any premium taxes. Those burial associations incorporated under the provisions of Section 83-37-15 shall be required to pay premium taxes as follows: Such foreign burial insurance companies and associations of every kind and description writing burial insurance contracts under the provisions of Section 83-37-15 shall be required to pay an annual premium tax of three percent (3%) of the gross amount of premium receipts received from and on burial insurance contracts written in or covering risks located in this state. Such domestic burial insurance companies and associations of every kind and description writing burial insurance contracts under the provisions of Section 83-37-15 shall be required to pay an annual premium tax of one half (1/2) of the amount hereinabove levied upon foreign burial insurance companies and associations.

Miss. Code Ann. § 83-37-19 Annual reports.

All such persons, firms, associations, or corporations shall, annually before the fifteenth day of February of each year, in accordance with the requirements of a form prepared and furnished by the commissioner of insurance for that purpose and in such detail as the commissioner shall prescribe, file with the commissioner a sworn statement of its business during the year previous, ending with December 31, showing the number of contracts in force, the number of contracts matured and unpaid, the amount of liability in force on said contracts at the end of the year, the business standing and the financial conditions of said persons, firms, associations, or corporations, and such other information as may be required by the commissioner of insurance.

Miss. Code Ann. § 83-37-21 Privilege tax.

When the above and foregoing provisions have been complied with by any person, firm, association or corporation, the insurance commissioner shall issue a license to such person, firm, association or corporation upon the payment to him of a privilege tax to engage in such business, according to the following schedule, to-wit: Any person, firm, association or corporation beginning the business or having not exceeding five hundred (500) contracts. . . . .$ 50.00 Same, where contracts exceed five hundred (500) but do not exceed one thousand (1,000). . . . .100.00 Same, where contracts exceed one thousand (1,000) but do not exceed fifteen hundred (1500). . . . .150.00 Same, where contracts exceed fifteen hundred (1500) but do not exceed two thousand (2,000). . . . .200.00 Same, where contracts exceed two thousand (2,000). . . . .250.00 and the payment of said license shall exempt such person, firm, association, or corporation from any other privilege tax on account of said business. Provided, however, that nothing in this chapter shall exempt any such person, firm, association or corporation from the payment of any tax now imposed by law for conducting an undertaker’s business or selling coffins. Every agent of any corporation organized or admitted to do business hereunder shall be required to obtain from the Commissioner of Insurance a perpetual agent certificate as prescribed in Sections 83-5-73 and 83-17-5, Mississippi Code of 1972, under the seal of his office showing that the company for which he or she is agent is licensed to do business in this state and that he or she is an agent of said company and duly authorized to do business for it. Every such agent on demand shall exhibit the said certificate to the person from whom he or she shall solicit contracts, and every such agent shall annually pay a privilege tax of Five Dollars ($5.00). The insurance commissioner may issue a duplicate certificate in case of loss or destruction of the original certificate and charge therefor a fee of Five Dollars ($5.00), and the insurance commissioner shall have the right to pass upon the qualifications of any such agent before issuing to him or her a license, and for good cause shall have the right to cancel such license. Any person, firm, association or corporation liable for the privilege tax imposed herein who shall fail to procure the license therefor before beginning the business for which such privilege tax is required, or who shall fail to renew, during the month in which it is due, the license on said business for which a privilege license has theretofore been issued, shall, in each or either instance, be liable for the amount of the tax required for such business and fifty percent (50%) thereof. It is hereby made the duty of the insurance commissioner to collect the said tax and penalty, and the commissioner, or his duly authorized representative, may make immediate demand upon such person, firm, association or corporation for the payment of such tax and penalty, and proceed to collect the same as is provided by law for the collection of other privilege licenses, penalties and damages.

Miss. Code Ann. § 83-37-23 Cancellation of license.

The failure of any person, firm, association, or corporation to promptly pay or fulfill any contract in force at the time of maturity, when legally determined that the contract was in force, the failure to pay promptly when due the examination fee required, the failure to pay the license fee, privilege license when due, or penalties when assessed, the failure to fulfill any contract when services are performed by another person, firm, association, or corporation with whom the deceased or his legal representative had contracted, or the failure to adhere to the approved policy form, or to collect and retain the filed and approved rate for premium as filed in the office of the commissioner of insurance, each and all shall be grounds for the cancellation by the commissioner of insurance of its license to do business in this state. Procedure for revocation of license under the above offenses shall be the same procedure as provided in the case of insurance agents engaging in the business of life, accident, and health insurance.

Miss. Code Ann. § 83-37-25 Fiscal examinations.

The insurance commissioner shall have full authority to examine the books, records, papers, and all other data belonging to or bearing on the business of any such person, firm, association, or corporation and may designate any practical accountant to make said examination at a reasonable per diem and expenses not to exceed the sum of One Hundred ($100.00) Dollars for any one (1) year, to be paid by such person, firm, association, or corporation. If upon examination the insurance commissioner be of the opinion that the capital stock of a domestic corporation has become impaired, or that any foreign company admitted to do business hereunder is insolvent, the commissioner may thereupon for said reason cancel its license to do business in this state. Any person, firm, or corporation that may refuse to permit the insurance commissioner or any practical accountant designated by him to examine the books, records, papers, and all other data belonging to or bearing on the business of any such person, firm, or corporation shall have his, their, or its license canceled and revoked by the commissioner. The insurance commissioner shall have full power in the regulation of any person, firm, or corporation, foreign or domestic, and anyone attempting to write burial certificate contracts without first having secured a license and having qualified under the provisions of statutes which govern, may be prosecuted under the provisions of Section 83-37-29.

Miss. Code Ann. § 83-37-27 Licenses issued as of March 1st; term.

The annual license granted under this chapter shall be dated as of the first day of March and be good for one year from date. All such persons, firms, associations, or corporations beginning the business herein described after the first day of March in any year shall pay a proportionate part of the privilege tax herein required.

Miss. Code Ann. § 83-37-29 Penalties; funding of agency expenses; deposit of monies into State General Fund.

Any person, firm, association, or corporation engaging in the business herein described without first having complied with the provisions hereof, or any person who shall knowingly make any false statement in the reports required by this chapter as determined by the Commissioner of Insurance after written notice and hearing, shall be assessed a penalty for each violation of not less than Two Hundred Fifty Dollars ($250.00) nor more than Five Hundred Dollars ($500.00), and in addition thereto shall forfeit the license to do business in this state. Funds from such penalties shall be deposited with the State Treasurer to be placed in a fund designated as the “Insurance Department Fund.” From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

Miss. Code Ann. § 83-37-31 Receivership.

Should the insurance commissioner find that any person, firm, association, or corporation engaged in the business herein described has refused to pay any just claim or demand based on the contracts, or that he or they be unable to pay same after the claim or demand has been legally determined to be just and outstanding, or fail to comply with any of the licensing provisions of this chapter, the commissioner shall notify the Attorney General. The Attorney General shall apply to the chancery court for a receivership to wind up the business of such person, firm, association, or corporation, shall represent the interest of all claimants under such contracts, and shall have a right of action for the use and benefit of the claimants against the bond or security herein required for the full amount of all such claims, together with all necessary costs of such receivership.

Miss. Code Ann. § 83-37-33 Scope of this chapter.

This chapter shall not apply to any labor union or labor union organization, whether organized in this state or not, making contracts with its members to pay money or provide funeral expenses in the event of the death of any member or any member’s family. Nor shall it apply to any duly organized fraternal order making contracts with its bona fide members to pay money or provide funeral expenses in the event of the death of any such bona fide members, provided such fraternal organization do not make such contracts for profit. Nor shall it apply to any duly organized church or church associations or societies making such contracts with its bona fide members only, and not making such contracts for profit.

Miss. Code Ann. § 83-37-35 Promulgation of rules and regulations regulating sale and solicitation of burial contracts; cease and desist orders.

The Commissioner of Insurance is hereby authorized to promulgate rules and regulations to the extent necessary to regulate the sale and solicitation of burial contracts and in addition may issue a cease and desist order and conduct hearings on any association or individual who is deemed to be in violation of Section 83-37-29.