(a) In the case of ordinary policies issued prior to the operative date of § 31-4705.02 (the standard nonforfeiture law) the loan value referred to in paragraph (6) of subsection (a) of § 31-4703 shall be the reserve at the end of the current policy year on the policy and on the dividend additions thereto, if any, exclusive of the reserve on account of return premium insurance and of total and permanent disability and additional accidental death benefits, less a sum not more than 2 1/2% of the amount insured by the policy and of any dividend additions thereto (the policy to specify the mortality table and rate of interest adopted for computing such reserve). The policy may provide that such loan may be deferred for not exceeding 6 months after the application therefor is made. A company may, in lieu of the provision hereinabove permitted for the deduction from a loan on the policy of a sum not more than 2 1/2% of the amount insured by the policy and of any dividend additions thereto, insert in the policy a provision that one fifth of the said reserve may be deducted in case of a loan under the policy, or may provide therein that the deduction may be the said 2 1/2% or the one fifth of the said reserve at the option of the company.
(b) In the case of ordinary policies issued on or after the operative date of § 31-4705.02 (the standard nonforfeiture law) the loan value referred to in paragraph (6) of subsection (a) of § 31-4703 shall be the cash surrender value at the end of the current policy year as required by § 31-4705.02. The company shall reserve the right to defer such loan, except when made to pay premiums, for 6 months after application therefor is made.
(June 19, 1934, ch. 672, ch. V, § 5c; Feb. 19, 1948, 62 Stat. 30, ch. 66, § 4; redesignated § 5d, Oct. 13, 1978, D.C. Law 2-120, § 9(a), 25 DCR 1519.)
1981 Ed., § 35-509.
1973 Ed., § 35-705d.
This section is referenced in § 31-4703.
The “operative date of § 31-4705.02,” referred to in subsections (a) and (b) of this section, was prescribed by § 2 of the Act of October 13, 1962, 76 Stat. 712, Pub. L. 87-738, which was formerly codified as § 35-507(g) (1981 Ed.). Section 35-507 § 31-4705.02, 2001 Ed. was rewritten effective March 14, 1985, and no longer contains the “operative date” language.
Structure District of Columbia Code
Title 31 - Insurance and Securities
Chapter 47 - Provisions Relating to All Life Insurance Companies
§ 31–4701. Valuation of reserves by Commissioner
§ 31–4702. Companies issuing both participating and nonparticipating policies
§ 31–4703. Life policies — Required provisions
§ 31–4704. Life policies — Prohibited provisions
§ 31–4705.01. Nonforfeiture benefits and cash surrender values
§ 31–4705.02. Standard nonforfeiture law — In general
§ 31–4705.03. Standard nonforfeiture law — Individual deferred annuities
§ 31–4705.04. Loan provisions in policies
§ 31–4706. Extension of time for payment of premiums
§ 31–4707. Ascertainment of loan indebtedness
§ 31–4708. Filing and approval of life policy forms
§ 31–4709. Policy provisions required by foreign government entities
§ 31–4710. Group policies — General requirements. [Repealed]
§ 31–4711. Group policies — Required provisions
§ 31–4711.01. Group policies — Right to, and notice of, issuance of individual policy
§ 31–4712. Accident and sickness policies
§ 31–4713. Prohibited activities — Securities operations. [Repealed]
§ 31–4714. Prohibited activities—Misrepresentations. [Repealed]
§ 31–4715. Prohibited activities—Discriminations. [Repealed]
§ 31–4716. Rights of parties under life policies
§ 31–4716.01. Exemption from legal process — Disability benefits
§ 31–4717. Exemption from legal process — Group life policy or proceeds
§ 31–4718. Fraudulent statements or representations against companies. [Repealed]
§ 31–4719. Authority to hold proceeds under trust or agreement
§ 31–4720. Calculations of premiums and reserves
§ 31–4721. Acceptance and recordation of premiums on industrial life or sick-benefit policies
§ 31–4722. Industrial life policies — Required provisions
§ 31–4723. Industrial life policies — Prohibited provisions
§ 31–4724. Access to psychologists or optometrists under group health insurance policy
§ 31–4725. Policy language simplification standards
§ 31–4726. Commissioner’s review of test
§ 31–4727. Applicability of §§ 31-4725 through 31-4730
§ 31–4729. Construction of §§ 31-4725 through 31-4730