HLS 14RS-555 ENGROSSED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 286
BY REPRESENTATIVE THIBAUT
INSURANCE/LIFE: Requires life insurers to notify insureds relative to conversion option
AN ACT1
To enact R.S. 22:931(A)(12), relative to individual life insurance policies; to require insurers2
to notify insureds of when their conversion option will expire; to provide for proof3
of notice to policyholders; to provide an exception for a child term rider; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:931(A)(12) is hereby enacted to read as follows: 7
ยง931. Life insurance policies; standard provisions8
A. No policy of life insurance, except as stated in Subsection C of this9
Section, shall be delivered or issued for delivery in this state unless it contains in10
substance the following provision or provisions which, in the opinion of the11
commissioner of insurance, are more favorable to the policyholder:12
* * *13
(12) Conversion notice. (a) A provision requiring that the insurer notify the14
policyholder of his option to convert his policy from term life insurance to15
permanent life insurance at least thirty-one days prior to the expiration of the16
conversion option, if such an option is applicable. Such notice shall be a separate17
notice or contained in either a premium notice or an annual premium summary.18 HLS 14RS-555 ENGROSSED
HB NO. 286
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) Evidence of a business procedure or practice to provide the required1
notice by mailing the notice to the policyholder at the address shown in the policy2
shall be sufficient to prove that the required notice was provided.3
(c) This Paragraph shall not apply to a policyholder who is covered under a4
child term rider.5
* * *6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Thibaut HB No. 286
Abstract: Requires prior notice of conversion option in individual life insurance policies.
Present law lists standard provisions to be contained in individual life insurance policies.
Proposed law adds a provision requiring that the insurer notify the policyholder of his option
to convert his policy from term life insurance to permanent life insurance at least 31 days
prior to the expiration of the conversion option, if such an option is applicable. Such notice
shall be a separate notice or contained in either a premium notice or an annual premium
summary.
Proposed law provides that an insurer's practice of mailing the required notice to the
policyholder at the policyholder's address shall be sufficient to prove that the required notice
was provided.
Proposed law provides that it does not apply to a policyholder covered under a child term
rider.
(Adds R.S. 22:931(A)(12))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Provided that an insurer's business practice of mailing the required notice to the
policyholder at the address provided by the policyholder will be sufficient to
prove the required notice given.
2. Provided that the notice requirement does not apply to a policyholder covered
under a child term rider.