ENROLLED
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are additions.
Regular Session, 2014
HOUSE BILL NO. 286
BY REPRESENTATIVE THIBAUT
AN ACT1
To amend and reenact R.S. 22:942(introductory paragraph) and (10)(a) and to enact R.S.2
22:931(A)(12), relative to individual life insurance policies; to require insurers to3
notify insureds of when their conversion option will expire; to allow for conversion4
from a group policy to an individual term life insurance policy; to provide for proof5
of notice to policyholders; to provide an exception for a child term rider; and to6
provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 22:942(introductory paragraph) and (10)(a) is hereby amended and9
reenacted and R.S. 22:931(A)(12) is hereby enacted to read as follows: 10
§931. Life insurance policies; standard provisions11
A. No policy of life insurance, except as stated in Subsection C of this12
Section, shall be delivered or issued for delivery in this state unless it contains in13
substance the following provision or provisions which, in the opinion of the14
commissioner of insurance, are more favorable to the policyholder:15
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(12) Conversion notice. (a) A provision requiring that the insurer notify the17
policyholder of his option to convert his policy from term life insurance to18
permanent life insurance at least thirty-one days prior to the expiration of the19
conversion option, if such an option is applicable. Such notice shall be a separate20
notice or contained in either a premium notice or an annual premium summary.21 ENROLLEDHB NO. 286
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(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
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§942. Standard provisions for group life policies7
Each policy of group life insurance as defined in R.S. 22:941 shall contain8
in substance the following provisions or, at the option of the insurer, provisions9
which in the opinion of the commissioner of insurance are not less favorable to the10
policyholder; However however, Paragraphs (6) through (12) of this Section shall11
not apply to policies described in R.S. 22:941(A)(3), except that, where policies are12
issued pursuant to that Paragraph, the insurer shall issue to the policyholder for13
delivery to the person whose life is insured an individual certificate setting forth the14
insurance protection afforded, to whom it is payable, information relating to notice15
and proof of loss, and that the standard provisions required for individual life16
insurance policies shall not apply to group life insurance policies:17
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(10) Conversion on termination of eligibility: A provision that if the19
insurance, or any portion of it, on an individual covered under the policy ceases20
because of termination of employment or of membership in the class or classes21
eligible for coverage under the policy, such individual shall be entitled to have issued22
to him by the insurer, without evidence of insurability, an individual policy of life23
insurance without disability or other supplementary benefits, provided application24
for the individual policy shall be made and the first premium paid to the insurer25
within thirty-one days after such termination. It is further provided that:26 ENROLLEDHB NO. 286
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(a) The individual policy shall, at the option of such individual, be on any1
one of the forms, except term insurance, then customarily issued by the insurer at the2
age and for the amount applied for.3
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SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: