The bill amends R.S. 22:901(C)(2) to clarify the definition of "insurable interest" in the context of bank-owned life insurance. It specifies that a bank must have a lawful and substantial economic interest in the life, health, or safety of the insured individual, distinguishing this from interests that would only arise from the individual's death, disablement, or injury.

Additionally, the bill introduces provisions that allow a bank to maintain its insurable interest in a former employee for the purpose of exchanging one bank-owned life insurance policy for another. It grants the commissioner the authority to determine the method and manner in which a bank may obtain consent for such exchanges, taking into account various factors including employee benefits, existing consent requirements, cybersecurity controls, and continuity of coverage.

Statutes affected:
SB509 Enrolled: 22:901(C)(2)
SB509 Act 588: 22:901(C)(2)