31A-22-419 - Insurer's purchase of and loans on policies.
31A-22-419. Insurer's purchase of and loans on policies.
Any life insurer may purchase for its own benefit any policy of insurance or otherobligation of the company and any claim of its policyholders. The insurer may also lend to theholders of policies of the company a sum which does not exceed the sum of the cash value of thepolicies and the surplus or dividend additions to the policies. The policies and all additions tothem shall be security for payment of the loan. An insurer's security interest in a policy under thissection need not be filed under Title 70A, Chapter 9a, Uniform Commercial Code -- SecuredTransactions, to be perfected.
Amended by Chapter 252, 2000 General Session