SB 509

2026 Regular Session  ENROLLED
  ACT No. 588
 SENATE BILL NO. 509
 BY SENATOR CLOUD
1AN ACT
2 To amend and reenact R.S. 22:901(C)(2), relative to bank-owned life insurance; to provide
3for an insurable interest; to provide for the exchange of bank-owned life insurance
4policies; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6Section 1. R.S. 22:901(C)(2) is hereby amended and reenacted to read as follows:
7§901. Insurable interest required; personal insurance; intentional acts exclusion
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9C. "Insurable interest" as used in this Section and in R.S. 22:856 includes
10only interest as follows:
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12(2)(a) In the case of other persons, a lawful and substantial economic interest
13in having the life, health or bodily safety of the individual insured continue, as
14distinguished from an interest which would arise only by, or would be enhanced in
15value by, the death, disablement or injury of the individual insured.
16(b)(i) A bank shall be deemed to maintain its insurable interest in a
17former employee for the purposes of exchanging one bank-owned life insurance
18policy for another.
19(b)(ii) The commissioner shall determine the method and manner in
20which a bank may obtain consent for the exchange. In making such a
21determination, the commissioner shall consider whether the life insurance
22policy is funding benefits afforded to the bank's employees, applicable consent
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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. 509  ENROLLED
1requirements, if any, under existing law, cybersecurity controls, alignment with
2federal and interstate requirements, and the continuity of coverage in
3connection with policy exchanges.
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  PRESIDENT OF THE SENATE
  SPEAKER OF THE HOUSE OF REPRESENTATIVES
  GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.