LA Rev Stat § 9:3542 (2021)
2021 Louisiana Laws|Revised Statutes|Title 9 - Civil Code-Ancillaries|§3542. Requirement of insurance

RS 3542 - Requirement of insurance A. In any consumer credit transaction made under the authority of this Chapter, other than insurance premium financing, an extender of credit may request or require a consumer to provide credit life insurance, credit dismemberment insurance, and credit health and accident insurance as additional security for such contract or agreement. If the extender of credit provides credit life insurance, credit dismemberment insurance, or credit health and accident insurance to a consumer, he shall disclose to the consumer at the time of contracting his option to purchase such insurance coverage or shall make such disclosures as are required by Regulation Z of the Board of Governors of the Federal Reserve System, 12 C.F.R. 226.1 et seq. The cost of such insurance, if required by the extender of credit, is deemed to be a portion of the credit service charge or loan finance charge for the purpose of computing maximum rates. More than one policy of credit life insurance, policy of credit dismemberment insurance, or policy of credit health and accident insurance, or any combination thereof, on any one consumer may be in force with respect to any one contract or agreement at any one time; however, the coverage of credit life insurance, credit dismemberment insurance, or credit health and accident insurance on any one consumer with respect to any one contract or agreement may not exceed the total sum payable under such contract including all loan finance charges and credit service charges. B.(1) On all consumer credit transactions, entered into on or after January 1, 1998, the premium rates shall be as follows: (a) The premium rate for declining balance credit life insurance shall not exceed ninety cents per one hundred dollars per annum. (b) The premium rate for joint credit life insurance coverage shall not exceed one dollar and thirty-five cents per one hundred dollars per annum. (c) The premium rate for level term credit life insurance shall not exceed one dollar and eighty cents per one hundred dollars per annum. (d) The premium rate for joint level term credit life insurance shall not exceed two dollars and seventy cents per one hundred dollars per annum. (2) Beginning on or after January 1, 1999, on all consumer credit transactions entered into, the premium rates shall be as follows: (a) The premium rate for declining balance credit life insurance shall not exceed eighty cents per one hundred dollars per annum. (b) The premium rate for level term credit life insurance shall not exceed one dollar and sixty cents per one hundred dollars per annum. (c) The premium rate for joint credit life insurance shall not exceed one dollar and twenty cents per one hundred dollars per annum. (d) The premium rate for joint level term credit life insurance shall not exceed two dollars and forty cents per one hundred dollars per annum. (3) The amount of credit life insurance issued pursuant to a consumer credit transaction shall not exceed the total sum payable under such contract including all loan finance and credit service charges. However, credit life insurance in the amount of the total amount payable not to exceed the maximum limits for each individual otherwise provided by law, may be issued on each of the lives of individuals who are co-obligors with respect to that consumer credit transaction. (4) The premium rate for credit dismemberment insurance shall not exceed twenty-five cents per one hundred dollars per annum. C. No policy of health and accident insurance may be issued pursuant to a consumer credit transaction other than seven day, fourteen day or thirty day retroactive health and accident insurance. The premium rates for retroactive accident and health insurance issued pursuant to a consumer credit transaction shall not exceed the rates set forth in the following schedule: Amount per $100.00 Months 7-Day Retro 14-Day Retro 30-Day Retro 0-6 $ 1.75 $1.10  $ .85 more than 6 through 12  3.50  2.20  1.70 more than 12 through 24  4.30  3.00  2.50 more than 24 through 36  5.10  3.80  3.30 more than 36 through 48  5.60  4.60  4.10 more than 48 through 60  6.00  5.40  4.90 more than 60 through 72  6.80  6.20  5.70 more than 72 through 84  7.60  7.00  6.50 more than 84 through 96  8.40  7.80  7.30 more than 96 through 108  9.20  8.60  8.10 more than 108 through 120 10.00  9.40  8.90 D. An extender of credit may offer credit life insurance in connection with a revolving loan account, lender credit card account, revolving charge account, or seller credit card account. The premium rate for individual credit life insurance offered in connection with such accounts shall not exceed .154 dollars per one hundred dollars, or portion thereof, per thirty day billing period that coverage is afforded. The premium rate for joint credit life insurance offered in connection with such accounts shall not exceed .231 dollars per one hundred dollars, or portion thereof, per thirty day billing period that the coverage is afforded. The charge for the revolving credit life insurance premium for each billing period shall not be due and payable until the end of the billing period that it insures. E. An extender of credit may offer any credit insurance authorized by the Louisiana Insurance Code in connection with a revolving loan account, lender credit card account, revolving charge account, or seller credit card account. The premium rate for these insurances shall not exceed the actuarial equivalent of the maximum rates allowed by law. Such rates shall have prior approval by the appropriate state agency. The charge for the revolving credit insurance premium for each billing period shall not be due and payable until the end of the billing period that it insures. F. In connection with a single consumer credit transaction, an extender of credit may not request or require a consumer to provide any credit insurance that provides duplicate or substantially the same protection against a single peril or loss as that furnished by any other credit insurance provided in connection with the same consumer credit transaction. G. Notwithstanding any other provision of law to the contrary, an extender of credit may offer any credit insurance authorized by the Louisiana Insurance Code in connection with any extension of credit authorized by this Chapter. Added by Acts 1972, No. 454, §1, eff. Jan. 1, 1973. Amended by Acts 1974, No. 466, §2; Acts 1980, No. 694, §1; Acts 1982, No. 630, §1; Acts 1986, No. 584, §1, eff. July 2, 1986; Acts 1987, No. 288, §1; Acts 1987, No. 908, §2; Acts 1988, No. 629, §1; Acts 1991, No. 480, §1; Acts 1991, No. 697, §1; Acts 1992, No. 1013, §1, eff. July 13, 1992; Acts 1992, No. 1087, §1, eff. July 14, 1992; Acts 1993, No. 726, §2; Acts 1995, No. 1184, §2; Acts 1997, No. 143, §1, eff. Jan. 1, 1998.