Prohibition on Compensating Balances or Other Special Deposit Accounts

Prohibition on Compensating Balances or Other Special Deposit Accounts Compensating balances and special deposit accounts by an insurer with a creditor through which the insurer issues credit insurance are to be considered in violation of Title 83, Chapter 53, Section 25(1) of the in Mississippi Code of 1972, Annotated. This prohibition applies regardless of whether premiums are due the insurer on the single premium basis or on the monthly premium outstanding balance basis. Nothing herein shall prevent an insurer from making deposits in financial institutions in the normal course of business.