§ 24-A §2553 — Maximum rate of interest on policy loans

Maine § 24-A §2553

• Jurisdiction: Maine
• Title 24-A: MAINE INSURANCE CODE
• Ch. 29: LIFE INSURANCE AND ANNUITY CONTRACTS

Text

1.
Policies issued on or after the effective date of this Act shall provide for policy loan interest rates as follows:
2.
The rate of interest charged on a policy loan made under subsection 1, paragraph B, shall not exceed the higher of the following:
3.
If the maximum rate of interest is determined pursuant to subsection 1, paragraph B, the policy shall contain a provision setting forth the frequency at which the rate is to be determined for that policy.
4.
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 any 3-month period. At the intervals specified in the policy:
5.
The life insurer shall:
6.
The loan value of the policy shall be determined in accordance with section 2510, but no policy may terminate in a policy year as the sole result of a change in the interest rate during that policy year, and the life insurer shall maintain coverage during that policy year until the time at which it would otherwise have terminated and if there had been no change during that policy year.
7.
The substance of the pertinent provisions of subsections 1 and 3 shall be set forth in the policies to which they apply.
8.
For purposes of this section:
9.
No other provision of law may apply to policy loan interest rates unless made specifically applicable to such rates.

Legislative History

PL 1981, c. 188, §4 (NEW).