California Insurance Code 1238 – For the purposes of this section:(1) The rate of interest on …
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For the purposes of this section:
(1) The rate of interest on policy loans permitted under this section includes the interest rate charged on reinstatement of policy loans for the period during and after any lapse of a policy.
Terms Used In California Insurance Code 1238
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Person: means any person, association, organization, partnership, business trust, limited liability company, or corporation. See California Insurance Code 19
(2) “Policy loan” includes any premium loan made under a policy to pay one or more premiums that were not paid to the life insurer as they fell due.
(3) “Policyholder” includes the owner of the policy or the person designated to pay premiums as shown on the records of the life insurer.
(4) “Policy” includes certificates issued by a fraternal benefit society and annuity contracts which provide for policy loans.
(Added by Stats. 1982, Ch. 1351, Sec. 3.)