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LouisianaSB 5092026 Regular SessionSenateWALLET

INSURANCE DEPARTMENT: Provides relative to bank-owned life insurance. (8/1/26)

Sponsored By: Heather Cloud (Republican)

Signed by Governor

Insurance

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Banks can exchange former employees’ life insurance

Beginning August 1, 2026, Louisiana banks retain the required legal interest in former employees when exchanging bank-owned life insurance policies. For other people, that interest requires a lawful, substantial financial stake in the insured person’s continued life, health, or safety. An interest only in their death or injury does not qualify. The insurance commissioner must determine how banks obtain consent for exchanges, considering employee-benefit funding and applicable consent requirements. The commissioner must also consider cybersecurity controls, federal and interstate requirements, and keeping coverage continuous. The law does not create a direct household payment.

Sponsors & Cosponsors

Sponsor

  • Heather Cloud

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 108 • No: 34

House vote • 5/26/2026

Read third time by title, amended, roll called on final passage, yeas 65, nays 30. Finally passed, ordered to the Senate.

Yes: 65 • No: 30

House vote • 5/19/2026

Reported with amendments

Yes: 7 • No: 4

Senate vote • 5/5/2026

Senate floor amendments read and adopted. Read by title and passed by a vote of 36 yeas and 0 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

Yes: 36 • No: 0

Actions Timeline

  1. Signed by the Governor. Becomes Act No. 588.

    6/1/2026Senate

  2. Effective date 8/1/2026.

    6/1/2026Senate

  3. Signed by the Speaker of the House.

    5/29/2026House

  4. Sent to the Governor by the Secretary of the Senate.

    5/29/2026Senate

  5. Enrolled. Signed by the President of the Senate.

    5/28/2026Senate

  6. Read third time by title, amended, roll called on final passage, yeas 65, nays 30. Finally passed, ordered to the Senate.

    5/26/2026House

  7. Received from the House with amendments.

    5/26/2026Senate

  8. Read by title, amended, passed to 3rd reading.

    5/25/2026House

  9. Scheduled for floor debate on 05/26/2026.

    5/25/2026House

  10. Reported without Legislative Bureau amendments.

    5/20/2026House

  11. Reported with amendments (7-4). Referred to the Legislative Bureau.

    5/19/2026House

  12. Read by title, under the rules, referred to the Committee on Insurance.

    5/7/2026House

  13. Received in the House from the Senate, read by title, lies over under the rules.

    5/6/2026House

  14. Senate floor amendments read and adopted. Read by title and passed by a vote of 36 yeas and 0 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

    5/5/2026Senate

  15. Read by title. Ordered engrossed and passed to third reading and final passage.

    4/27/2026Senate

  16. Reported favorably.

    4/22/2026Senate

  17. Read second time by title and referred to the Committee on Insurance.

    4/1/2026Senate

  18. Rules suspended. Introduced in the Senate. Read by title and placed on the Calendar for a second reading.

    3/31/2026Senate

Bill Text

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