Mississippi Life Insurance Policy Requirements

Mississippi law imposes specific requirements on life insurance policies sold in the state. These requirements protect consumers and ensure policy standardization under the Mississippi Insurance Code (Title 83).

Regulatory Authority

The Mississippi Insurance Department (MID) regulates all insurance activities in the state:

• Reviews and approves policy forms
• Licenses insurance producers
• Investigates consumer complaints
• Enforces insurance laws and regulations
• Publishes regulations and bulletins

Free Look Period

Mississippi provides a standard free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: Mississippi follows the standard 10-day free look period for life insurance, which is the most common timeframe among states.

Incontestability Clause

Mississippi requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
• Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
• The clause protects beneficiaries from having claims denied due to application errors

Mississippi-Specific Rules

• Incontestability period begins from the issue date
• If policy lapses and is reinstated, a new 2-year period begins
• Material fraud may still be contested in some circumstances

Suicide Clause

Mississippi limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered
• If policy is reinstated, new 2-year period may apply
• Accidental death benefits may have different exclusion rules

Beneficiary Protections

Mississippi has specific beneficiary protection laws:

Death Master File Requirement

Mississippi requires insurers to:

• Cross-check policies against the Social Security Death Master File
• Make reasonable efforts to locate beneficiaries
• Initiate claims process when death is confirmed
• Cannot charge fees for locating beneficiaries

Unclaimed Property

If beneficiaries cannot be found:

• Death benefits are not forfeited
• Must be reported as unclaimed property
• Escheat to the State Treasury
• Beneficiaries can still claim from the state

Policy Delivery Requirements

Mississippi requires:

• Policy delivered within reasonable time of issue
• Delivery must include policy summary
• Receipt should be documented
• Electronic delivery permitted with consent

Grace Period

Mississippi life insurance policies must include:

Reinstatement Rights

Mississippi policyholders have reinstatement rights:

• May reinstate within 3 years of lapse
• Must provide evidence of insurability
• Must pay back premiums with interest
• New contestability period may begin

Standard Policy Provisions

Mississippi requires these standard provisions in life insurance policies:

• Entire contract clause
• Misstatement of age adjustment
• Grace period
• Incontestability clause
• Suicide exclusion (2-year maximum)
• Reinstatement provisions