Sec. 4. (a) The loan value of a policy shall be determined in accordance with IC 27-1-12-6(8); however, a policy shall not terminate in a policy year as the sole result of an increase in the interest rate and the failure of the policyholder to pay the amount of interest required by that increase during that policy year. In such event, the insurer shall maintain coverage during that policy year until the time at which the policy would otherwise have terminated if there had been no change during that policy year.
As added by Acts 1981, P.L.240, SEC.1.
Structure Indiana Code
Article 1. Department of Insurance
Chapter 12.3. Interest Rates on Insurance Policy Loans
27-1-12.3-2. Required Provisions in Policies
27-1-12.3-3. Variable Interest Rate Loans; Duties of Insurer
27-1-12.3-5. Nonapplicability of Other Laws
27-1-12.3-6. Inapplicability to Contracts Issued Before September 1, 1981; Agreement Excepted