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To: Banking and Financial
Services
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Hood
HOUSE BILL NO. 1219
AN ACT TO AMEND SECTION 75-67-121, MISSISSIPPI CODE OF 1972, 1
TO AUTHORIZE A LICENSEE UNDER THE SMALL LOAN REGULATORY LAW TO 2
CHARGE A FEE FOR THE PURCHASE OF NONFILING OR NONRECORDING 3
INSURANCE IN LIEU OF THE ACTUAL COST OF RECORDING AN INSTRUMENT 4
EXECUTED AS SECURITY FOR A LOAN; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 75-67-121, Mississippi Code of 1972, is 7
amended as follows: 8
75-67-121. (1) Any licensee under this article may charge 9
any borrower on loans of One Hundred Dollars ($100.00) or more: 10
the actual cost of recording any instrument executed as security 11
for a loan; any reasonable fee paid to an attorney for 12
investigating the title to any property given as security for a 13
loan; the actual cost of any premium paid for insurance upon any 14
property given as security for a loan, such insurance to be placed 15
with an insurance company agent of the borrower's selection so 16
long as it is licensed to do business in the State of Mississippi; 17
and the actual cost of any premium paid for credit life, health 18
and/or accident insurance and/or involuntary unemployment 19
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insurance on any borrower where the amount of insurance required 20
is not in excess of the amount of the loan * * * and the premium 21
for the insurance is in keeping with that usually and customarily 22
paid for like insurance. 23
In lieu of the actual cost of recording an instrument 24
executed as security for a loan, a licensee may charge a fee for 25
the purchase of nonfiling or nonrecording insurance on the 26
instrument; however, the fee may not exceed the amount of the fee 27
charged by the Secretary of State to file an initial financing 28
statement commonly referred to as the Mississippi Financing 29
Statement Form UCC1. 30
(2) In addition, after the licensee has fully approved the 31
loan to the borrower, the licensee may offer the borrower the 32
opportunity to purchase an auto club membership. The licensee 33
shall inform the borrower in writing that the purchase of an auto 34
club membership is optional and is not required as a condition of 35
receiving the loan, and that failure to purchase an auto club 36
membership will not affect the licensee's approval of the loan or 37
the receipt of the loan by the borrower. The notification shall 38
be initialed by the borrower. If the borrower chooses to purchase 39
an auto club membership, the licensee shall allow the borrower to 40
pay the cost of the auto club membership using funds other than 41
the proceeds of a loan or have the cost deducted from the proceeds 42
of any loan obtained from the licensee. The borrower shall be 43
allowed to cancel the auto club membership for a full refund of 44
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the purchase price at any time within thirty (30) days after the 45
date of purchase from the licensee if the borrower has not used 46
any of the services provided through the auto club membership. 47
The commissioner shall monitor the number of loans made by 48
licensees with which the borrower chooses to purchase an auto club 49
membership, and shall report that information to the Chairmen of 50
the House Banking and Financial Services Committee and the Senate 51
Business and Financial Institutions Committee by January 1, 2009. 52
(3) On loans of One Hundred Dollars ($100.00) or more, any 53
licensee under this article may solicit and collect from any 54
purchasing borrower the actual cost of any insurance premium paid 55
for any one or more noncredit insurance policies, provided that 56
such insurance is optional, is filed with the Department of 57
Insurance, and is underwritten by an insurance company qualified 58
to do business in Mississippi, and provided that the following 59
conditions are met: 60
(a) The licensee shall not require the purchase of the 61
noncredit insurance as a condition of receiving any loan or other 62
extension of credit from the licensee; 63
(b) The licensee's employees offering the noncredit 64
insurance are: 65
(i) Properly licensed with the Department of 66
Insurance as an insurance producer for the type of insurance being 67
offered to the borrower by that employee; and 68
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ST: Small Loan Regulatory Law; authorize
licensee to charge fee for nonrecording
insurance in lieu of recording cost.
(ii) Appointed with the insurance company 69
providing the insurance policy to the purchasing borrower; 70
(c) The licensee shall not make the borrower's ability 71
to obtain any current or future loan or other extension of credit 72
from the licensee contingent upon the borrower's agreement to 73
purchase the noncredit insurance or otherwise transact business 74
with the licensee; and 75
(d) The licensee shall allow the borrower the option to 76
pay the cost of the noncredit insurance policy using funds other 77
than the proceeds of a loan obtained from the licensee, or to have 78
the cost of the noncredit insurance paid from the proceeds of any 79
loan obtained from the licensee. 80
The limitations on the amount of insurance contained in 81
subsection (1) of this section shall not apply to insurance sold 82
under this subsection (3). 83
(4) Whenever he finds it necessary, the Commissioner of 84
Banking and Consumer Finance shall have the power to adopt and 85
enforce reasonable rules and regulations to prevent the abuse of 86
this section and the making of excessive charges under this 87
section. 88
SECTION 2. This act shall take effect and be in force from 89
and after July 1, 2026. 90