§431:10D-103 Policy loan interest rates for policies issued after June 22, 1982. (a) For the purposes of this section:
(b) Policies issued on or after June 22, 1982, shall provide for maximum policy loan interest rates as follows:
Insurers issuing policies with interest rates as provided in subsection (b)(2) shall make available policies with interest rates as provided in subsection (b)(1).
(c) The rate of interest charged on a policy loan made under subsection (b)(2) shall not exceed the higher of the following:
In the event that the Moody's Corporate Bond Yield Average-Monthly Average Corporate is no longer published by Moody's Investors Service, Inc., a substantially similar average, approved by rule adopted by the commissioner, shall be substituted.
(d) If the maximum rate of interest is determined pursuant to subsection (b)(2), the policy shall contain a provision setting forth the frequency at which the rate is to be determined for that policy. The maximum rate for each policy shall be determined at regular intervals at least once every twelve months, but not more frequently than once in any three-month period. At the intervals specified in the policy, the rate being charged shall be reduced whenever such reduction as determined under subsection (b)(2) would decrease that rate by one-half per cent or more per annum.
(e) The life insurer shall:
(f) No policy shall terminate in a policy year as the sole result of a change in the interest rate during that policy year, and the life insurer shall maintain coverage during that policy year until the time at which it would otherwise have terminated if there had been no change during that policy year.
(g) The substance of the pertinent provisions of subsections (a) through (d) shall be set forth in the policies to which they apply. [L 1987, c 347, pt of §2; am L 2004, c 122, §44]