N.Y. Insurance Law § 4222: Policy loans

§ 4222. Policy loans. The policy loan value referred to in paragraph

eight of subsection (a) of section three thousand two hundred three of

this chapter shall be the cash surrender value at the end of the current

policy year calculated in accordance with the provisions of:

(a) Subsection (a) of section four thousand two hundred twenty of this

article, for policies issued before the operative date of section four

thousand two hundred twenty-one of this article, except that any

dividends credited to the policy need not be included and such policies

may provide that the company may defer any such loan for not exceeding

six months after receipt of the loan application;

(b) Section four thousand two hundred twenty-one of this article, for

policies issued on or after the operative date of such section, except

that the policy loan value for a policy under which any cash surrender

value is adjusted in accordance with a market-value adjustment formula

shall be a percentage (not less than seventy-five percent) of the sum of

(1) the amount of any loan outstanding and (2) the remaining portion of

the cash surrender value as so adjusted at the time the loan is applied

for, but, if the policy so provides, not in excess of such cash

surrender value before adjustment. The company shall reserve the right

to defer any such loan, except when made to pay premiums, for six months

after receipt of the loan application.