§ 10540. — 10540. (Amended by Stats. 1957, Ch. 2314.)

California § 10540.

• Jurisdiction: California
• Code INS: Insurance Code - INS
• Div. 2.: DIVISION 2. CLASSES OF INSURANCE
• Part 2.: PART 2. LIFE AND DISABILITY INSURANCE
• Ch. 6.: CHAPTER 6. Incorporated Life Insurers Issuing Policies on a Reserve Basis
• Art. 3.: ARTICLE 3. Premiums and Premium Accounts

Text

An incorporated life insurer issuing life insurance policies on the reserve basis may collect premiums in advance. Such insurers may also accept moneys for the payment of future premiums related to any policies issued by it. No such insurer may accept such moneys in an amount to exceed (1) the sum of future unpaid premiums on any such policy or (2) the sum of 10 such future unpaid annual premiums on any such policy if such sum is less than the sum of future unpaid premiums on any such policy. This section shall not limit the right of such insurers to accept funds under an agreement which provides for an accumulation of such funds for the purpose of purchasing annuities at future dates.

Legislative History

Amended by Stats. 1957, Ch. 2314.