California Insurance Code ARTICLE 5.5 - Life Insurance Policy Loans

• Section 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...
• Section 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 Moody’s Investors Service, Inc. or...
• Section 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 provision...
• Section 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...
• Section 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...
• Section 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...
• Section 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...
• Section 1237.
  The substance of the pertinent provisions of Section 1232 and 1233 shall be set forth in the policies to which the provisions apply.(Added by Stats....
• Section 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 policy...
• Section 1239.
  No other provision of law shall apply to policy loan interest rates unless made specifically applicable to these rates.(Added by Stats. 1982, Ch. 1351, Sec.
• Section 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...

Last modified: October 22, 2018