ARTICLE 5.5. Life Insurance Policy Loans

Article 5.5 added by Stats. 1982, Ch. 1351, Sec. 3.

§§ 1230–1239.5 · 11 sections

• § 1230 The Legislature declares that the purpose of this article is to establish guidelines for life insurers to use in life insurance policies which contain a…
• § 1231 For the purposes of this article the “published monthly average” means: (a) Moody’s Corporate Bond Yield Average-Monthly Average Corporates as published by…
• § 1232 (a) Policies issued on or after the effective date of this article shall provide for policy loan interest rates at either of the following rates: (1) A…
• § 1233 If the maximum rate of interest is determined pursuant to paragraph (2) of subdivision (a) of Section 1232, the policy shall contain a provision setting forth…
• § 1234 The maximum rate for each policy shall be determined at regular intervals at least once every 12 months, but not more frequently than once in any three-month…
• § 1235 The life insurer shall do all of the following: (1) Notify the policyholder at the time a cash loan is made of the initial rate of interest on the loan. (2)…
• § 1236 The loan value of the policy shall be equivalent to the cash surrender value of the policy, the minimum requirements of which are specified in Sections 10160…
• § 1237 The substance of the pertinent provisions of Section 1232 and 1233 shall be set forth in the policies to which the provisions apply.
• § 1238 For the purposes of this section: (1) The rate of interest on policy loans permitted under this section includes the interest rate charged on reinstatement of…
• § 1239 No other provision of law shall apply to policy loan interest rates unless made specifically applicable to these rates.
• § 1239.5 The provisions of this article shall not apply to any insurance contract issued before the effective date of this article unless the policyholder agrees in…