Tower Loan of Mississippi, Inc. - Page 12

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          among the statutes in Tew v. Dixieland Finance, Inc., 527 So. 2d            
          665 (Miss. 1988).                                                           
               Tew involved a small loan company which, like petitioner,              
          sold credit life insurance through licensed employees.  Like                
          petitioner, the loan company itself was not licensed to sell                
          insurance.  The loan company brought suit against a borrower who            
          had defaulted on his loan.  The borrower counterclaimed,                    
          asserting that the loan company’s receipt of commissions on his             
          purchase of credit life insurance from the loan company was in              
          violation of Miss. Code Ann. sec. 83-17-105--as the loan company            
          was not a licensed agent--and in violation of Miss. Code Ann.               
          sec. 75-67-121.                                                             
               In Tew, before deciding the issue of whether the loan                  
          company violated section 83-17-105, the court noted that it was             
          common practice in the industry for unlicensed creditors to                 
          receive commissions for the sale of credit insurance.  Id. at               
          670.  Furthermore, the court cited Miss. Code Ann. sec. 83-53-25            
          and Ins. Dept. Reg. 82-102 as evidence that the Mississippi                 
          Legislature and Department of Insurance have recognized that                
          unlicensed creditors may receive commissions.  Id. at 670-671.              
          However, the court emphasized that these “regulations ignore the            
          inconsistency of these provisions with Miss. Code Ann. �83-17-105           
          (Supp. 1987) which prohibits the payment of any commission to any           
          person who is not a licensed agent”.  Id. at 671.  Accordingly,             
          the court held “that the receiving of * * * [the] commission by             

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