The Producer Licensing Act, found at Miss. Code Ann. § 83-17-51 et. seq (Supp. 2001), became effective January 1, 2002, and contains certain new mandates for the appointment of producers/agents to Insurance Companies. These new mandates require the following:
 

(1) Insurance Companies operating in Mississippi have fifteen (15) days from the date the agency contract is executed or the first insurance application is submitted to request the new appointment of a producer/agent.

(2) Insurance Companies operating in Mississippi have thirty (30) days from the date of termination to notify the Commissioner when the appointment of a producer/agent is terminated.

In light of the new deadlines and requirements for appointing producers/agents, several new procedures will be implemented by the Licensing Division of the Mississippi Department of Insurance. These new procedures include:
 

(1) Producer/agent appointments will now become effective the date the appointment form was received by the Mississippi Department of Insurance. In accordance with Miss. Code Ann. § 83-17-75, Insurance Companies will be given fifteen (15) days to request an official appointment of a producer/agent. This enables a producer/agent to sell insurance for fifteen (15) days prior to actually being appointed by the company. If an insurer fails to submit such request within fifteen (15) days from the date the agency contract is executed or the first insurance application is submitted, the company may be considered in violation of said section.

(2) Termination of producer/agent appointments will no longer be issued with an effective date more than thirty (30) days from the date the request was received by the Mississippi Department of Insurance, in accordance with Miss. Code Ann. § 83-17-77. If an insurer fails to notify the Commissioner within thirty (30) days after terminating a producer/agent, the company may be considered in violation of said section.

These new procedures will go into effect on February 15, 2002. Insurance Companies found to be in violation of Miss. Code Ann. § 83-17-75 or Miss. Code Ann. § 83-17-77, shall be subject to disciplinary action, including revocation of licensure to operate in Mississippi.

If you have any questions regarding these new procedures, please contact the Licensing Division of the Mississippi Department of Insurance at (601) 359-3582.

George Dale
Commissioner of Insurance