SEC. 81-21-21. Return of unearned premiums to premium finance company; refund of excess to insured.

Section 81-21-21, Mississippi Code of 1972, is amended as follows:

81-21-21. (1) Whenever a financed insurance contract is cancelled, the insurer shall return whatever gross unearned premiums are due under the insurance contract, calculated pro rata, directly to the premium finance company for the account of the insured or insureds as soon as reasonably possible, but in no event later than thirty (30) days after the effective date of cancellation.

(2) In the event that a premium is subject to an audit to determine the final premium amount, the gross unearned premium shall be calculated upon the deposit premium and the insurer shall return whatever gross unearned premiums are due based upon that deposit to the finance company for the account of the insured.

(3) In the event that the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund such excess to the insured, provided that no such refund shall be required if it amounts to less than Three Dollars ($3.00).

SOURCES: Laws, 1992, ch. 569, Sec. 11, eff from and after July 1, 1992.

1997 Amendment

SECTION 6. Section 81-21-21, Mississippi Code of 1972, is amended as follows:

 81-21-21. (1) Whenever a financed insurance contract is cancelled, the insurer shall return whatever gross unearned premiums are due under the insurance contract, calculated on the rule of the sum of the digits commonly known as the "Rule of 78ths," directly to the premium finance company for the account of the insured or insureds as soon as reasonably possible, but in no event later than thirty (30) days after the effective date of cancellation.

 (2) In the event that a premium is subject to an audit to determine the final premium amount, the gross unearned premium shall be calculated upon the deposit premium and the insurer shall return whatever gross unearned premiums are due based upon that deposit to the finance company for the account of the insured.

 (3) In the event that the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund such excess to the insured, provided that no such refund shall be required if it amounts to less than Three Dollars ($3.00).

SOURCE: 1997 Laws, Chapter 332, Sec. 6, HB916, Effective Ap-March 17, 1997. Amended by Laws 1999, Ch. 336, Sec. 1, eff. July 1, 1999.