Louisiana SB509 regulates the exchange of bank-owned life insurance policies, defining terms and requiring consent.

Louisiana SB509, effective August 1, 2026, enacts provisions for bank-owned life insurance policies. It defines "bank-owned life insurance" as policies purchased by a bank on an employee's life to provide a death benefit or offset benefit plan costs. The bill allows banks to exchange these policies with another of the same type and death benefit amount, but only if the former employee consents in writing. This consent is necessary for the exchange to occur.

Louisiana SB509 regulates the exchange of bank-owned life insurance policies, defining terms and requiring consent.

Louisiana SB509, effective August 1, 2026, enacts provisions for bank-owned life insurance policies. It defines "bank-owned life insurance" as policies purchased by a bank on an employee's life to provide a death benefit or offset benefit plan costs. The bill allows banks to exchange these policies with another of the same type and death benefit amount, but only if the former employee consents in writing. This consent is necessary for the exchange to occur.