Senate Bill 2186 Summary

• Requires automobile insurers to add repair business or lienholder names as payees on claim checks only when the loss exceeds $2,000 but is not a total loss, and when lienholders are shown in the policy or confirmed in writing.

• For total loss claims, insurers must add lienholder names as payees when lienholders are shown in the policy, confirmed in writing by the insured, or shown on the vehicle title with the Mississippi Department of Revenue.

• Lienholders receiving payment must return any balance owed to the debtor within 30 days; insurers may issue separate checks to lienholders and insureds for their respective financial interests in total loss cases.

• Establishes procedures for insurers to obtain salvage or parts-only certificates of title from the Department of Revenue if the owner fails to provide a properly endorsed title within 30 days of total loss settlement.

• Requires insurers to make at least two written attempts to obtain the certificate of title and submit documentation under penalty of perjury when requesting alternative title certificates from the Department of Revenue.

• Takes effect July 1, 2016, and repeals on July 1, 2017.