{"data":{"id":"us-ky/krs-304.15-110","jurisdiction":"us-ky","citation":"KRS 304.15-110","heading":"Policy loans.","body":"(1) There shall be a provision that after three (3) full years' premiums have been paid\nand after the policy has a cash surrender value and while no premium is in default\nbeyond the grace period for payment, the insurer will advance, on proper\nassignment or pl edge of the policy and on the sole security thereof, at a specified\nrate of interest, an amount equal to or, at the option of the party entitled thereto, less\nthan the loan value of the policy. The loan value of the policy shall be at least equal\nto the cash surrender value at the end of the then current policy year, and the insurer\nmay deduct, either from such loan value or from the proceeds of the loan, any\nexisting indebtedness not already deducted in determining such cash surrender\nvalue including any i nterest then accrued but not due, any unpaid balance of the\npremium for the current policy year, and interest on the loan to the end of the\ncurrent policy year. The policy may also provide that if interest on any indebtedness\nis not paid when due, it shall  then be added to the existing indebtedness and shall\nbear interest at the same rate, and that if and when the total indebtedness on the\npolicy, including interest due, or accrued, equals or exceeds the amount of the loan\nvalue thereof, then the policy shall terminate and become void, but not until at least\nthirty (30) days after notice has been mailed by the insurer to the last address of\nrecord with the insurer, of the insured or other policy owner and of any assignee of\nrecord at the insurer's principal office. The policy shall reserve to the insurer the\nright to defer the granting of a loan, other than for the payment of any premium to\nthe insurer, for six (6) months after application therefor. The policy, at the insurer's\noption, may provide for automatic premium loan.\n(2) This section shall not apply to term policies, or to term insurance benefits provided\nby rider or supplemental policy provisions or to industrial life insurance policies.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17207","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"2b3ffd02c7a405172cf32b106dc0c8256865f033f33f7e3fa0e1469d6c4ff3d4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-100","next":"us-ky/krs-304.15-115"},"notice":"GroundRules: Original legal text. Not legal advice."}