Section 5-508 - Policy loans.
§ 5-508. Policy loans.
(a) Authorized.- A life insurer may lend to its policyholder on the policy as collateral security an amount not exceeding the cash surrender value of the policy.
(b) Eligible reserve investment.- A policy loan is an eligible reserve investment of a life insurer.
[An. Code 1957, art. 48A, § 93; 1995, ch. 36; 2001, ch. 332.]