State Codes and Statutes

Statutes > New-jersey > Title-17b > Section-17b-25 > 17b-25-8

17B:25-8.  Policy loan
    There shall be a provision that after 3 full years' premiums have been paid  and after the policy has a cash surrender value and while no premium is in  default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a specified rate of interest, an amount equal to or, at the option of the party  entitled thereto, less than the loan value of the policy.  The loan value of  the policy shall be at least equal to the cash surrender value at the end of  the then current policy year, provided that the insurer may deduct, either from  such loan value or from the proceeds of the loan, any existing indebtedness not  already deducted in determining such cash surrender value including any  interest then accrued but not due, any unpaid balance of the premium for the  current policy year, and interest on the loan to the end of the current policy  year.  The policy may also provide that if interest on any indebtedness is not  paid when due it shall then be added to the existing indebtedness and shall  bear interest at the same rate, and that if and when the total indebtedness on  the policy, including interest due or accrued, equals or exceeds the amount of the loan value thereof, then the policy shall terminate and become void but not  until at least 30 days' notice shall have been mailed by the insurer to the  last known address of the insured or other policy owner and of any assignee of  record at the home office of the insurer. The policy shall reserve to the  insurer the right to defer the granting of a loan, other than for the payment  of any premium to the insurer, for 6 months after application therefor.  The  policy may, at the insurer's option, contain automatic premium loan provisions  and may provide that such provisions do not become operative unless so elected  by the person entitled to do so. This section shall not apply to term  insurance, or to industrial life insurance policies.

     L.1971, c. 144, s. 17B:25-8.
 

State Codes and Statutes

Statutes > New-jersey > Title-17b > Section-17b-25 > 17b-25-8

17B:25-8.  Policy loan
    There shall be a provision that after 3 full years' premiums have been paid  and after the policy has a cash surrender value and while no premium is in  default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a specified rate of interest, an amount equal to or, at the option of the party  entitled thereto, less than the loan value of the policy.  The loan value of  the policy shall be at least equal to the cash surrender value at the end of  the then current policy year, provided that the insurer may deduct, either from  such loan value or from the proceeds of the loan, any existing indebtedness not  already deducted in determining such cash surrender value including any  interest then accrued but not due, any unpaid balance of the premium for the  current policy year, and interest on the loan to the end of the current policy  year.  The policy may also provide that if interest on any indebtedness is not  paid when due it shall then be added to the existing indebtedness and shall  bear interest at the same rate, and that if and when the total indebtedness on  the policy, including interest due or accrued, equals or exceeds the amount of the loan value thereof, then the policy shall terminate and become void but not  until at least 30 days' notice shall have been mailed by the insurer to the  last known address of the insured or other policy owner and of any assignee of  record at the home office of the insurer. The policy shall reserve to the  insurer the right to defer the granting of a loan, other than for the payment  of any premium to the insurer, for 6 months after application therefor.  The  policy may, at the insurer's option, contain automatic premium loan provisions  and may provide that such provisions do not become operative unless so elected  by the person entitled to do so. This section shall not apply to term  insurance, or to industrial life insurance policies.

     L.1971, c. 144, s. 17B:25-8.
 

State Codes and Statutes

State Codes and Statutes

Statutes > New-jersey > Title-17b > Section-17b-25 > 17b-25-8

17B:25-8.  Policy loan
    There shall be a provision that after 3 full years' premiums have been paid  and after the policy has a cash surrender value and while no premium is in  default beyond the grace period for payment, the insurer will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a specified rate of interest, an amount equal to or, at the option of the party  entitled thereto, less than the loan value of the policy.  The loan value of  the policy shall be at least equal to the cash surrender value at the end of  the then current policy year, provided that the insurer may deduct, either from  such loan value or from the proceeds of the loan, any existing indebtedness not  already deducted in determining such cash surrender value including any  interest then accrued but not due, any unpaid balance of the premium for the  current policy year, and interest on the loan to the end of the current policy  year.  The policy may also provide that if interest on any indebtedness is not  paid when due it shall then be added to the existing indebtedness and shall  bear interest at the same rate, and that if and when the total indebtedness on  the policy, including interest due or accrued, equals or exceeds the amount of the loan value thereof, then the policy shall terminate and become void but not  until at least 30 days' notice shall have been mailed by the insurer to the  last known address of the insured or other policy owner and of any assignee of  record at the home office of the insurer. The policy shall reserve to the  insurer the right to defer the granting of a loan, other than for the payment  of any premium to the insurer, for 6 months after application therefor.  The  policy may, at the insurer's option, contain automatic premium loan provisions  and may provide that such provisions do not become operative unless so elected  by the person entitled to do so. This section shall not apply to term  insurance, or to industrial life insurance policies.

     L.1971, c. 144, s. 17B:25-8.