Sec. 4022.
There shall be a provision that after 3 full year premiums have been paid, the company at any time, while the policy is in force, shall advance, on proper assignment of the policy and on the sole security thereof, subject to the approval of the insurance commissioner as herein provided, at a rate of interest not exceeding the rate specified in section 4023, a sum equal to, or at the option of the owner of the policy, less than the amount required by section 4062 under the conditions specified thereby; and that the company will deduct from the loan value any indebtedness not already deducted in determining the loan value and any unpaid balance of the premium for the current policy year, and may collect interest in advance on the loan to the end of the current policy year. It shall be further stipulated in the policy that failure to pay any advance or to pay interest shall not void the policy unless the total indebtedness thereon to the company equals or exceeds the loan value at the time of the failure and until 1 month after notice is mailed by the company to the last known address of the insured and of the assignee if any. A condition other than as provided in this section shall not be exacted as a prerequisite to any advance. This provision shall not be required in term insurances. The interest limit provided for in section 4023 shall also apply to loans on annuity contracts.
History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1976, Act 405, Imd. Eff. Jan. 5, 1977 ;-- Am. 1982, Act 427, Imd. Eff. Dec. 29, 1982 Compiler's Notes: Section 2 of Act 405 of 1976 provides: “The amendments made by this act shall not impair the terms and conditions of any policy of life insurance in force before the effective date of this act.”Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
Section 500.4000 - Scope of Chapter.
Section 500.4001 - Universal Life Insurance; Definitions.
Section 500.4004 - Entire Contract.
Section 500.4008 - Life Insurance; Provisions Required; Single Premium Policies.
Section 500.4010 - Premiums; Payment; Provision Required.
Section 500.4012 - Life Insurance Policy; Provision Required.
Section 500.4014 - Entire Contract; Incontestability; Exceptions.
Section 500.4018 - Misstatement of Age or Sex; Provisions Required.
Section 500.4020 - Participation in Surplus; Provision Required.
Section 500.4022 - Policy Loans Generally.
Section 500.4024 - Nonforfeiture Benefits; Cash Surrender Values; Provision Required.
Section 500.4026 - Table of Loan Values and Options; Provision Required.
Section 500.4028 - Default in Premium Payments; Reinstatement; Provision Required.
Section 500.4030 - Settlement of Claim Upon Death of Insured; Provision Required.
Section 500.4032 - Table of Installments; Provision Required.
Section 500.4036 - Title Required.
Section 500.4037 - Universal Life Insurance Policy; Provisions Required.
Section 500.4042 - Liability Limitation; Aviation, Military or Naval Service.
Section 500.4048 - Provisions Required by Laws of Other States or Counties.
Section 500.4052 - Preliminary Term Insurance on Old Policies; Reserve.
Section 500.4054 - Proceeds of Policy; Exemption From Creditors.
Section 500.4058 - Nonforfeiture Benefits on Old Policies.
Section 500.4060 - Standard Nonforfeiture Law for Life Insurance.
Section 500.4062 - Loan Value; Deferment.
Section 500.4064 - Loan Indebtedness; Right to Compound Interest.
Section 500.4072 - Standard Nonforfeiture Law for Individual Deferred Annuities.
Section 500.4072.amended - Standard Nonforfeiture Law for Individual Deferred Annuities.