The standard life provisions, nonforfeiture and dividend options, settlement options, and riders are covered in the national Life Policy Provisions guide. Louisiana's required individual life provisions are in R.S. 22:931, nonforfeiture is in 22:934, group life provisions are in 22:942, and replacement is governed by Regulation 70 (LAC 37:XIII.8901 to .8925). Use the Louisiana numbers below on state questions.

Required provisions (R.S. 22:931(A))

Incontestability has no fraud exception. The incontestable clause bars only contests of the policy's validity. It doesn't stop the insurer from applying a permitted exclusion or the misstatement-of-age adjustment (22:931(B)(4)).

Delivery and the free look.

• A producer who delivers a policy in person gets a receipt signed by the policyholder, showing the policy number and date. Receipts are kept two years.
• A policy mailed with a certificate of mailing is presumed received 10 days after mailing (22:931(A)(10)).

Permitted exclusions and the suicide clause (22:931(B))

A Louisiana life policy may exclude only:

• war and military service
• suicide within two years, whether sane or insane
• aviation under specified conditions
• specified hazardous occupations or foreign residence within two years

If an excluded suicide happens, the insurer must still pay at least the reserve on the face amount, plus paid-up additions and dividends, minus any policy debt (22:931(B)(2)).

Other life policy rules

• Nonforfeiture (22:934). After three full annual premiums, a policy can't be forfeited without value. Term policies of 20 years or less are exempt.
• Lapse notice (22:905). For many annual-premium policies, the insurer can't declare a lapse within a year after default unless it mailed a premium notice 15 to 45 days before the due date. Lapse can't take effect until 30 days after mailing.
• Backdating (22:904). A policy may not be dated more than six months before the application to get a lower premium.
• Soliciting agent (22:903). A policy may not make the soliciting agent the agent of the insured.
• Assignment (22:876). After a valid assignment, the insurer deals with the assignee as owner until written notice ending the assignment reaches its home office.

Beneficiaries and claim payment

• Divorce (22:911.1, Acts 2024, No. 94). A divorce revokes a revocable designation of the former spouse. Proceeds pass as if the ex-spouse died first, unless a judgment or property agreement says otherwise.
• A beneficiary responsible for the death (22:901(D)). A beneficiary held criminally responsible for the insured's death is disqualified. Proceeds go to the contingent beneficiary, or to the estate if there is none.
• Creditors (22:912). Proceeds are protected from the insured's creditors and from the beneficiary's pre-existing debts.
• Paying the claim (22:1811, 22:908). A death claim is settled within 60 days of due proof of death. If it is late without just cause, it bears 8% interest. Separately, interest on the benefit starts to accrue 20 days after proof is received.

Replacement (Regulation 70)

Producer's duties:

• When an applicant has existing life insurance or annuities, the producer presents and reads the Notice Regarding Replacement no later than when the application is taken.
• In an electronic sale, a hard copy of the signed notice goes to the applicant within two business days after the case is submitted.

Insurers' duties:

• The replacing insurer notifies the existing insurer within five business days.
• The replacing insurer gives a 30-day right to return the new contract for an unconditional refund.
• The existing insurer sends the owner a letter offering in-force information within five business days.
• Replacement records are kept at least five years after the policy ends.

Exempt: nonconvertible term with five years or less left that can't be renewed.

Illustrations and advertising

Regulation 55 (illustrations):

• An illustration is labeled "life insurance illustration", and guaranteed and non-guaranteed values are labeled separately.
• If no illustration is used, the producer certifies that in writing, and a conforming illustration is provided by delivery.
• Policyowners of illustrated policies get an annual report.
• Basic illustrations are kept until three years after the policy ends.

Regulation 60 (advertising):

• Ads may not call a plan's premiums "vanishing."
• Ads may not call premiums "deposits" or "savings" in a misleading way.
• Ads may say "free" only when it is true.
• Ads are kept for four years or until the next exam report, whichever is longer.

Group life (22:942)

• The grace period is 31 days.
• The group policy is incontestable after two years, except for nonpayment.
• Coverage continues after employment ends until the paid period ends, but no more than 31 days.
• Conversion to an individual policy without evidence of insurability is available within 31 days. If the person dies in that window, the convertible amount is paid as a claim.
• If the group policy itself ends, only those insured five years may convert, and the amount may be capped at $2,000.
• A facility payment of up to $250 may go to whoever paid funeral expenses.

Common exam traps

• The grace period is 30 days or one month. The free look is 10 days, or 30 on a replacement.
• Incontestability runs two years, with exceptions only for nonpayment and military service. There is no fraud exception.
• Suicide may be excluded for two years, but the reserve must still be paid.
• Reinstatement is available for three years, with interest of no more than 6%.
• Death claims are settled in 60 days.
• Since 2024, divorce revokes a revocable designation of the ex-spouse.