Louisiana Life Insurance
- By understanding life insurance laws where you live, you can make smart policy decisions. Learn which Louisiana life insurance laws may affect your coverage.
Life insurance plans are designed to provide financial protection for policyowners and their families, but laws governing this important coverage can vary from state to state. Understanding the insurance-related laws where you live can help you make more informed policy decisions so you can be confident the policy you buy is the right one for your family’s unique needs. Keep reading to learn more about Louisiana life insurance laws and how they may affect your coverage choices.
Louisiana Life Insurance Rules and Specifics
In Louisiana, life insurance is regulated under Title 37 of the Louisiana Administrative Code. As the state’s official regulatory body for insurance providers, The Louisiana Department of Insurance enforces Title 37 laws to provide consumers with a stable, competitive market for insurance solutions.
Title 37 Provisions
Under Title 37, all state-licensed insurers must provide specific provisions for life insurance policyholders, shoppers and beneficiaries, including:
- The free look period. Louisiana life insurance companies must grant new policyholders a free look period of at least 10 days. During this time, a purchaser may cancel their contract for any reason and receive a full refund with no questions asked.
- The late payment grace period. Under Louisiana law, policyholders have up to 30 days to pay a missed premium before the issuing company may legally cancel the policy for nonpayment.
- Personal information protection. Louisiana law requires insurers to safeguard the privacy of personal information such as medical records. Upon request, an insurer must inform a consumer about the specific nature of these protective methods.
- Timely claims payment. Once a claim is filed, Louisiana insurers have 60 days in which to pay the death benefit. Companies that don’t settle claims in a timely fashion must pay interest to the beneficiaries and may incur penalties.
Life Insurance Resources in Louisiana
For most inquiries, consumers may reach out to the Louisiana Department of Insurance, which oversees life insurance transactions throughout the state. The LDI’s Office of Health, Life and Annuities can help consumers:
- File a complaint against a life insurance or annuity company
- Search for a deceased relative’s policy information
- Locate insurance companies and other industry professionals
- Determine whether an insurance company is in good standing with the LDI
- Understand the contractual terms of their coverage
- Know their rights as a beneficiary
If the company issuing your life insurance policy or annuity becomes insolvent or goes bankrupt, you may contact the Louisiana Life & Health Insurance Guaranty Association, which provides continuing coverage of up to $300,000 in death benefits and up to a $100,000 cash surrender value. This protection only applies to state-licensed companies and is only available to consumers whose policies were in good standing at the time the company was liquidated.