Could a Louisiana city self-insure a council member instead of buying life insurance?

Plain-English summary

In 2005, the Louisiana Attorney General concluded that the City of Baker could self-insure the life of one council member instead of buying a life-insurance policy for that person. The city council had voted in 1986 to provide its mayor and council members with $25,000 life-insurance policies. The mayor asked whether the city could cover one council member itself for that amount.

The opinion was brief. Its legal conclusion was that the AG's research revealed no law prohibiting this specific substitution. It cited earlier Attorney General Opinion No. 04-0132 as consistent with the answer. It did not analyze how the city would fund or administer the self-insured benefit.

Currency note

This opinion was issued in 2005. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could Baker self-insure a council member rather than buy a life policy? A: The AG said yes for the arrangement described in the request; it found no law prohibiting self-insurance in place of the policy.

How much coverage had the city council approved? A: The opinion said the 1986 council motion provided for $25,000 life-insurance policies for the mayor and each council member.

Did the opinion prescribe a funding method for self-insurance? A: No. It answered whether the substitution was legally barred and did not give a funding method.

Background and authority

Mayor Harold Rideau asked if Baker could self-insure one council member for the amount of the earlier approved policy. The AG's operative finding was: “This office is unaware of, and our research did not reveal, any provision of law which would prohibit the City from self-insuring one of its councilmen in lieu of providing the council member with a policy of life insurance.”

Citations

• Attorney General Opinion No. 04-0132 (earlier opinion identified as in accord).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/05-0015

Original opinion text

April 20, 2005
OPINION NUMBER 05-0015

Hon. Harold M. Rideau, Mayor
54 – INSURANCE
90-A POLITICAL SUBDIVISIONS
City of Baker
Political subdivision may self-insure
Post Office Box 707
one of its councilmen in lieu of
Baker, Louisiana 70704
providing a policy of life insurance.

Dear Mayor Rideau,

You requested an Attorney General’s opinion regarding the City of Baker’s provision of life insurance to its Mayor and councilmen. Specifically you question whether the City may self insure the life of one of the councilmen in the amount of $25,000.00. You indicated that in 1986, by motion made, seconded and duly adopted, the City Council voted to provide the Mayor and each member of the Council with a policy of life insurance in the face amount of $25,000.00.

This office is unaware of, and our research did not reveal, any provision of law which would prohibit the City from self-insuring one of its councilmen in lieu of providing the council member with a policy of life insurance. In accord is Attorney General Opinion No. 04-0132.

Trusting this adequately responds to your request, we remain

Yours very truly,

CHARLES C. FOTI, JR.
Attorney General

BY: _________
KENNETH L. ROCHE, III
Assistant Attorney General

CCF, JR/KLR, III/mjb

Page 2

OPINION NUMBER 05-0015

54 – INSURANCE
90-A POLITICAL SUBDIVISIONS

Political subdivision may self-insure one
of its councilmen in lieu of providing a
policy of life insurance.

Hon. Harold M. Rideau, Mayor
City of Baker
Post Office Box 707
Baker, Louisiana 70704

Date Received:

Date Released: April 20, 2005

KENNETH L. ROCHE, III
ASSISTANT ATTORNEY GENERAL