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.
Present law provides that an individual no longer eligible for coverage under a group term life
policy because he is no longer eligible may convert to any individual life insurance policy issued
by the insurer except a term life policy.
Proposed law provides that the individual may convert to an individual term life policy.
(Amends R.S. 22:942(10)(a); 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.
House Floor Amendments to the engrossed bill.
1. Provided that an individual covered under a group term life insurance policy who ceases to be eligible under the policy due to termination of employment or
membership in the class eligible for coverage under the policy shall have the option to
convert the policy to an individual term life insurance policy.