Indiana Code 27-1-12.3-3. Variable interest rate loans; duties of insurer
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Sec. 3. With respect to variable interest rate loans under section 2 of this chapter, the insurer shall:
(2) notify the policyholder as soon as is reasonably practical after a premium loan is made of the initial rate of interest on the loan, except that notice need not be given the policyholder when a further premium loan is added other than the notice required by subdivision (3) of this section;
(1) notify the policyholder at the time a cash loan is made of the initial rate of interest on the loan;
Terms Used In Indiana Code 27-1-12.3-3
- Insurer: means an entity issuing a policy. See Indiana Code 27-1-12.3-1
- interest rate: means the rate of interest on policy loans, including the rate of interest charged on reinstatement of policy loans for the period during and after any lapse. See Indiana Code 27-1-12.3-1
- 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
- Policyholder: includes the owner of the policy or the person designated to pay premiums as shown on the records of the life insurer. See Indiana Code 27-1-12.3-1
- premium: means money or any other thing of value paid or given in consideration to an insurer, insurance producer, or solicitor on account of or in connection with a contract of insurance and shall include as a part but not in limitation of the above, policy fees, admission fees, membership fees and regular or special assessments and payments made on account of annuities. See Indiana Code 27-1-2-3
(3) send to the policyholder reasonable advance notice of any increase in the loan interest rate; and
(4) include in the notices required by this section, whether the rate is fixed or variable and, if variable, the permitted frequency of change.
As added by Acts 1981, P.L.240, SEC.1.