2006 Louisiana Laws - RS 22:396 — Policy limits; required provisions

§396.  Policy limits; required provisions

No policy issued by any insurer under this Part shall exceed five thousand dollars, and no one individual shall be issued policies of life and/or accident and health by any such insurer, in an aggregate amount of more than five thousand dollars.  Every policy or certificate hereafter issued by any insurer authorized under this Part, shall have plainly written in red ink on the first page thereof the words "Assessment Plan" and shall specify the sum of money which it promises to pay upon each contingency insured against, which shall not be in excess of five thousand dollars, and the number of days after receipt of proof of the happening of such contingency in which such payment shall be made.  Upon the occurrence of such contingency, unless the contract shall have been voided by fraud, or by breach of its conditions, the insurer shall be obligated to the beneficiary for such payment at the time and to the maximum amount specified in the policy or certificate.  If the commissioner of insurance shall be satisfied upon investigation that any such insurer has refused or failed to make such payment for thirty days after it became due, and after proper demand, he shall notify the insurer to issue no new policies or certificates until such indebtedness is fully paid; and no officer or agent of such insurer shall make, sign or issue any policy or certificate of insurance while such notice is in force.  

Every policy or certificate issued subsequent to 12:00 noon of October 1, 1948, by any insurer authorized under this Part shall contain a clause reserving the right to the insurer to increase the rate of dues or assessments, or to levy additional assessments against the insured, to the extent necessary to pay his respective share of losses in case the mortuary fund shall become depleted.  All the proceeds of such increase in assessments or additional assessments shall be placed in their entirety to the credit of the mortuary fund, and no part thereof shall be used for the expenses of management.  

Acts 1958, No. 125.