Louisiana legislation · 2026 Regular Session
Louisiana SB509: INSURANCE DEPARTMENT: Provides relative to bank-owned life insurance. (8/1/26)
Status: Signed into law, June 1, 2026
What the bill says
An act To enact R.S. 22:920, relative to bank-owned life insurance; to provide for an insurable interest; to provide for the exchange of bank-owned life insurance policies; to provide for definitions; to provide for consent to the exchange; and to provide for related matters.
From the introduced text:
AN ACT To enact R.S. 22:920, relative to bank-owned life insurance; to provide for an insurable interest; to provide for the exchange of bank-owned life insurance policies; to provide for definitions; to provide for consent to the exchange; and to provide for related matters. Be it enacted by the Legislature of Louisiana: Section 1. R.S. 22:920 is hereby enacted to read as follows: §920. Exchange of bank-owned life insurance A. For purposes of this Section, "bank-owned life insurance" means life insurance purchased by a bank on the life of a bank employee for either of the following reasons: (1) To provide an endorsement split dollar death benefit to the insured's beneficiary. (2) To offset the cost of an employee's benefit plan. B.(1)(a) A bank-owned life insurance policy insuring a former employee of the bank may be exchanged for another bank-owned life insurance policy of the same type and death benefit amount. Page 1 of Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SLS 26RS-1463 ORIGINAL SB NO. (b) The bank will be deemed to maintain its insurable interest in the former employee for purposes of the exchange. (2) The exchange may occur only if the former employee provides written consent to the exchange. The original instrument and the following …
Sponsors
- Cloud, Heather (R, 28) · primary sponsor
Latest actions
- : Effective date 8/1/2026.
- : Signed by the Governor. Becomes Act No. 588.
- : Sent to the Governor by the Secretary of the Senate.
- : Signed by the Speaker of the House.
- : Enrolled. Signed by the President of the Senate.
- : Amendments proposed by the House read and concurred in by a vote of 30 yeas and 5 nays.
- : Received from the House with amendments.
- : Read third time by title, amended, roll called on final passage, yeas 65, nays 30. Finally passed, ordered to the Senate.
- : Scheduled for floor debate on 05/26/2026.
- : Read by title, amended, passed to 3rd reading.
Votes
- Senate Vote on SB 509, CONCUR (#1428) (May 27, 2026): 30 yea, 5 nay, passed
- House Vote on SB 509, FINAL PASSAGE (#1536) (May 26, 2026): 65 yea, 30 nay, passed
- House Vote on SB 509, AMENDMENT # 6143 BY BAMBURG, MOTION TO ADOPT (#1535) (May 26, 2026): 27 yea, 62 nay, failed
- Senate Vote on SB 509, FINAL PASSAGE (#552) (May 5, 2026): 36 yea, 0 nay, passed
Common questions
- What is SB509?
- SB509 is a bill in the Louisiana Legislature (2026 Regular Session): INSURANCE DEPARTMENT: Provides relative to bank-owned life insurance. (8/1/26).
- What does SB509 do?
- In its own words: An act To enact R.S. 22:920, relative to bank-owned life insurance; to provide for an insurable interest; to provide for the exchange of bank-owned life insurance policies; to provide for definitions; to provide for consent to the exchange; and to provide for related matters.
- What is the status of SB509?
- Signed into law as of June 1, 2026. Latest action: Effective date 8/1/2026. (June 1, 2026).
- Who sponsored SB509?
- Cloud, Heather (R, 28).
- Where is the official record for SB509?
- On the Louisiana Legislature website: https://legis.la.gov/legis/BillInfo.aspx?s=26RS&b=SB509
Source: official Louisiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.