40-429. Loan provisions in policies. - Kansas Statutes

40-429

Chapter 40.--INSURANCE Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES

      40-429.   Loan provisions in policies.(a) In the case of those policies issued prior to the operative date ofK.S.A. 40-428 (the standard nonforfeiture law) the loanvalue referred to in subsection (5) of K.S.A. 40-420, shall be the reserve at the endof the current policy year on the policy and on the dividend additionsthereto, if any, exclusive of the reserve on account of return premiuminsurance and of total and permanent disability and additionalaccidental death benefits, less a sum not more than two and one-halfpercentum of the amount insured by the policy and of any dividendadditions thereto (the policy to specify the mortality table and rate ofinterest adopted for computing such reserve). Such policies may furtherprovide that such loan may be deferred for not exceeding six monthsafter the application therefor is made.

      (b)   In the case of policies issued on or after the operative date ofK.S.A. 40-428 (the standard nonforfeiture law) the loanvalue referred to in subsection (5) of K.S.A. 40-420, shall be the cash surrendervalue at the end of the current policy year as required by K.S.A.40-428. The company shall reserve the right to defer suchloan, except when made to pay premiums, for six months after applicationtherefor is made.

      History:   L. 1947, ch. 277, § 5; July 1.