Indiana § 27-1-12.3-4 Loan value of policy; determination; termination of policy due to
increase in interest rate

Indiana Statutes

§ 27-1-12.3-4 — Loan value of policy; determination; termination of policy due to increase in interest rate

Indiana § 27-1-12.3-4

Title 27INSURANCE

Art. 1DEPARTMENT OF INSURANCE

Ch. 12.3Interest Rates on Insurance Policy Loans

This text of Indiana § 27-1-12.3-4 (Loan value of policy; determination; termination of policy due to increase in interest rate) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 27-1-12.3-4 (2026).

Text

(a)The loan value of a policy shall be determined in accordance with IC 27-1-12-6(8); however, a policy shall not terminate in a policy year as the sole result of an increase in the interest rate and the failure of the policyholder to pay the amount of interest required by that increase during that policy year. In such event, the insurer shall maintain coverage during that policy year until the time at which the policy would otherwise have terminated if there had been no change during that policy year. As added by Acts 1981, P.L.240, SEC.1.

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(a) The loan value of a policy shall be
determined in accordance with IC 27-1-12-6(8); however, a policy shall
not terminate in a policy year as the sole result of an increase in the
interest rate and the failure of the policyholder to pay the amount of
interest required by that increase during that policy year. In such event,
the insurer shall maintain coverage during that policy year until the
time at which the policy would otherwise have terminated if there had
been no change during that policy year.
As added by Acts 1981, P.L.240, SEC.1.