SLS 20RS-201 ORIGINAL
2020 Regular Session
SENATE BILL NO. 216
BY SENATOR CATHEY
INSURANCE POLICIES. Provides relative to annuities. (8/1/20)
1 AN ACT
2 To amend and reenact R.S. 22:856 and 901(A) and (B), relative to annuities; to provide
3 relative to applications for insurance for annuities; to provide relative to insurable
4 interest for purposes of annuity contracts; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:856 and 901(A) and (B) are hereby amended and reenacted to
7 read as follows:
8 §856. Application for insurance required
9 No life, annuity, or health and accident insurance contract upon an individual,
10 except a contract of group life insurance, or of group annuity, or of group or
11 blanket health and accident insurance as defined in this Code, shall be made or
12 effectuated unless at the time of the making of the contract the individual insured,
13 being of competent legal capacity to contract, in writing applies therefor or consents
14 thereto, except in the following cases:
15 (1) A spouse may effectuate such the insurance upon the other spouse.
16 (2) Any person having an insurable interest in the life of a minor, or any
17 person upon whom a minor is dependent for support and maintenance, may
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 216
SLS 20RS-201 ORIGINAL
1 effectuate insurance upon the life of the minor.
2 * * *
3 §901. Insurable interest required; personal insurance; intentional acts exclusion
4 A. Any individual of competent legal capacity may procure or effect an
5 insurance contract upon his own life or body for the benefit of any person; however,
6 no person shall procure or cause to be procured any insurance contract upon the life
7 or body of another individual unless the benefits under such the contract are payable
8 to the individual insured whose life or body is the subject of the contract or his
9 personal representatives, or to a person having, at the time when such the contract
10 was made, an insurable interest in the individual insured whose life or body is the
11 subject of the contract.
12 B. If the beneficiary, assignee, or other payee under any contract made in
13 violation of this Section receives from the insurer any benefits under the contract
14 accruing upon the death, disablement, or injury of the individual insured whose life
15 or body is the subject of the contract, the individual insured whose life or body
16 is the subject of the contract or his executor or administrator, as the case may be,
17 may maintain an action to recover such the benefits from the person receiving them.
18 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by LG Sullivan.
DIGEST
SB 216 Original 2020 Regular Session Cathey
Present law restricts who may insure the life or health of an individual to the insured him-or
herself, the insured's spouse, and anyone with an insurable interest in the insured's life or
body. Provides that "insurable interest" for purposes of present law means either:
(1)A substantial interest engendered by love of and affection for an individual who is
a close relative.
(2)A lawful and substantial economic interest in the continued life, health, or safety of
the individual.
Proposed law retains present law and clarifies that the restrictions apply to contracts for
annuities as well as other types of insurance.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 216
SLS 20RS-201 ORIGINAL
Effective August 1, 2020.
(Amends R.S. 22:856 and 901(A) and (B))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.