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Mississippi Senate Gets Death Benefit Interest Bill

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NU Online News Service, Feb. 18, 5:23 p.m. – The Mississippi Senate is considering a measure that would require life insurers to pay interest on life insurance death benefits from the “date of receipt of due proof” of an insured’s death till the date the claim is paid.

The rate would be at least 4% per year, according to a text of the committee substitute version of the bill, which is on the Web at

If the current rate of interest on death proceeds left on deposit with the insurer under an interest settlement option were higher, or the current rate on dividends left on deposit with the insurer were higher, then the highest of the three rates would apply, according to the bill text.

The House approved the measure, House Bill 851, Feb. 6.

The Senate Insurance Committee now has jurisdiction over the bill

Rep. Keith Montgomery, D-Clinton, Miss., was the lead sponsor in the House.