Louisiana Life Insurance (LA)
The state of Louisiana has instigated laws and regulations that help to financially protect consumers and insurers.
Louisiana Life Insurance Laws Protecting Consumers (LA)
Title 22 of Louisiana’s Revised Statues is the governing force behind the state’s insurance industry. Under this title, claim procedures and policy requirements are overseen for the consumer’s protection. Some laws include:
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“Free Look” Provision: Allows new life insurance policyholders a 10-day period to change their mind about their policy and cancel for any reason. All paid premiums must legally be returned.
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All settlements are to be completed within 60 days of receipt of the proper documentation. Unless the insurer can find just cause for the delay, 8% interest shall accrue from this point forward, until the settlement in completed.
- Any policyholder may request a disclosure of their medical information. Requests must be attended to in a timely manner. While insurance companies can (and do) report information to the Medical Information Bureau, this information cannot be used to deny a claim by a different insurance company.
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Louisiana Life Insurance Laws and Regulations Protecting Insurers (LA)
Louisiana also protects insurers under Title 22. Some of these laws include:
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Right to Investigate: A life insurance company has the right to investigate any claim before a settlement is completed, within a reasonable time period, usually 60 days. Each insurer can follow their personalized claims procedure. This information should be outlined within the policy of the insured.
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Suicide: An exclusion period for suicide as a death benefit may not legally extend over two years.
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Misstatements and/or Fraudulent Information found on a life insurance policy or application is subject to penalty, up to the discretion of the insurer.
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Insurance Illustrations (insurance company financial projections) are also legal in the state of Louisiana.
Additional Louisiana Life Insurance Regulations (LA)
Viatical Settlements: Arrangement made between an insured individual and a third party. The third party “purchases” the insured’s life insurance policy, makes the payments, and in turn is the sole beneficiary of the policy. These are also allowed within the state.
In the unfortunate event that your licensed life insurance company becomes insolvent, your coverage will be protected by the Louisiana Life & Health Insurance Guaranty Association. This organization does, however, have limits on its benefits. $300,000 is the maximum death benefit, while the cash surrender maximum is $100,000.
In order to qualify for the Guaranty Association’s benefits, your insurance company must be licensed in Louisiana, and your policy’s premiums need to be current.
Protect the future of your loved ones and request a Louisiana life insurance quote now!
Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
Last Updated: June 16, 2009
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