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Miss. Code Ann. sec. 83-17-7 likewise states:
It shall be unlawful for any insurance company or
any insurance agent to pay, directly or indirectly, any
commission, brokerage or other valuable consideration
on account of any policy or policies written on risks
in this state to any person, agent, firm or corporation
not duly licensed as an insurance agent in this state,
* * *.
These statutes seem to forbid commission payments to petitioner,
as petitioner is not a “duly licensed agent”. Respondent,
however, cites Miss. Code Ann. sec. 83-53-25(1)(1973), which
states as follows:
No one shall pay, accrue, credit or otherwise
allow, either directly or indirectly, any compensation
to any creditor, person, partnership, corporation,
association or other entity in connection with any
policy, certificate or other contract of credit life
insurance or credit disability insurance which exceeds
forty-five percent (45%) of the premium rates approved
for such policy, certificate or contract.
A similar regulation, limiting the amount allowable as
compensation to any “creditor or agent” for the sale of credit
life insurance, was in place during the years in issue.
Mississippi Insurance Department Reg. No. LA & H 82-102.6 The
Supreme Court of Mississippi addressed this apparent conflict
6 Miss. Ins. Dept. Reg. No. LA & H 82-102, sec. VII
provides:
No insurance company shall pay, credit or otherwise allow
any compensation or other valuable consideration, either
directly or indirectly to any creditor or agent for the sale
of any policy, certificate or other contract of credit
insurance which exceeds fifty percent of the premium rates
specified for such policy, certificate or contract.
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Last modified: May 25, 2011