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Questions and Answers
According to the policy, what is the maximum interest rate for cash loans on policies issued on or after October 1, 1981?
According to the policy, what is the maximum interest rate for cash loans on policies issued on or after October 1, 1981?
- Not more than 8% per year (correct)
- Not more than 12% per year
- Not more than 5% per year
- Not more than 10% per year
When must the life insurer notify the policyholder of the initial rate of interest on a cash loan?
When must the life insurer notify the policyholder of the initial rate of interest on a cash loan?
- One week after the cash loan is made
- One month after the cash loan is made
- One year after the cash loan is made
- At the time a cash loan is made (correct)
Will a policy terminate in a policy year solely due to a change in the interest rate during that policy year?
Will a policy terminate in a policy year solely due to a change in the interest rate during that policy year?
- It depends on the amount of the interest rate change
- No, the policy will not terminate (correct)
- Yes, the policy will terminate
- It depends on the type of policy
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