Tower Loan of Mississippi, Inc. - Page 11

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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                 
               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