Mississippi Code
Miss. Code Ann. § 83-54-5 (2026)
Definitions
✓ current as of July 2026
As used in this chapter, unless the context otherwise requires:
- (a) "Actual cash value (ACV)" means the cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence.
- (b) "Blanket insurance" means insurance that provides coverage on collateral as defined in a policy issued to a creditor, without specifically listing the collateral covered.
- (c) "Collateral" means personal property that is pledged as security for the satisfaction of a debt.
- (d) "Credit agreement" means the written document that sets forth the terms of the credit transaction and includes the security agreement.
- (e) "Credit transaction" means a transaction by the terms of which the repayment of money loaned or credit commitment made, or payment of goods, services or properties sold or leased, is to be made at a future date or dates.
- (f) "Creditor" means the lender of money or vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction, or any successor to the right, title or interest of a lender, vendor or lessor.
- (g) "Creditor-placed insurance" means insurance that is purchased unilaterally by the creditor, who is the named insured, subsequent to the date of the credit transaction, providing coverage against loss, expense or damage to collateralized personal property as a result of fire, theft, collision or other risks of loss that would either impair a creditor's interest or adversely affect the value of collateral covered by limited dual interest insurance. It is purchased according to the terms of the credit agreement as a result of the debtor's failure to provide required physical damage insurance, with the cost of the coverage being charged to the debtor. It shall be either single interest insurance or limited dual interest insurance.
- (h) "Debtor" means the borrower of money or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction.
- (i) "Insurance tracking" means monitoring evidence of insurance on collateralized credit transactions to determine whether insurance required by the credit agreement has lapsed, and communicating with debtors concerning the status of insurance coverage.
- (j) "Insurer" means an insurance company, association or exchange authorized to issue insurance policies in the State of Mississippi.
- (k) "Lapse" means that the insurance coverage required by the credit agreement is not in force.
- (l) "Limited dual interest insurance" means insurance purchased by the creditor to insure its interest in the collateral securing the debtor's credit transaction. This insurance waives the three (3) conditions for loss payment under single interest insurance and extends coverage on the collateral while in the possession of the debtor.
- (m) "Loss ratio" means the ratio of incurred losses to earned premium.
- (n) "Net debt" means the amount necessary to liquidate the remaining debt in a single lump-sum payment, excluding all unearned interest and other unearned charges.
- (o) "Producer" means a person who receives a commission for insurance placed or written or who, on behalf of an insurer or creditor, solicits, negotiates, effects, procures, delivers, renews, continues or binds policies of insurance to which this chapter applies, except a regular salaried officer, employee or other representative of an insurer who devotes substantially all working time to activities other than those specified here and who receives no compensation that is directly dependent on the amount of insurance business written, and except a regular salaried officer or employee of a creditor who receives no compensation that is directly dependent on the amount of insurance effected or procured.
- (p) "Single interest insurance" means insurance purchased by the creditor to insure its interest in the collateral securing a debtor's credit transaction. Three (3) conditions must be met for payment of loss under the policy:
- (i) The debtor has defaulted in payment;
- (ii) The creditor has legally repossessed the collateral, unless collateral has been stolen from the debtor; and
- (iii) The creditor has suffered an impairment of interest.
- (q) "Commissioner" means the Commissioner of Insurance.
Laws, 2001, ch. 307, § 3, eff. 7/1/2001.
Notes of Decisions
Cited in 3
cases (2 in the last 5 years), 2020–2024 · leading case: Sproull v. State Farm Fire & Cas. Co., 2021 IL 126446 (Ill. 2021).
Sproull v. State Farm Fire & Cas. Co., 2021 IL 126446 (Ill. 2021). “at 704 (quoting Miss. Code Ann. § 83-54-5 (a) (2019)). The Fifth Circuit used the following example to demonstrate the parties’ different approaches to determining ACV: “To understand the difference between the two parties’ proffered definitions of ‘Actual Cash Value,’ we will…”
Lorine Mitchell v. State Farm Fire & Cas. Co. (5th Cir. 2020). “” Miss. Code Ann. § 83-54-5 (a). Consistent with this definition, State Farm explained in a document provided to Mitchell that Actual Cash Value is the “repair or replacement cost of the damaged part of 1 The record does not detail the exact nature of the damage, but for ease of…”
Sims v. Allstate Fire & Cas. Ins. Co. (W.D. Tex. 2024). “Consistent with this def- inition, the insurer advised the insured that Actual Cash Value is the “repair or re- placement cost of the damaged part of the property less depreciation and deducti- ble.”
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