MS HB1381

Life insurance policies offering policy loans must only provide fixed interest rates, eliminating the previous option for adjustable rates tied to Moody's Corporate Bond Yield Average

Maximum policy loan interest rate remains capped at 8% per annum

Life insurers must notify policyholders of the fixed interest rate in explicit bold print when making a cash loan

Removes provisions allowing insurers to adjust rates at regular intervals (every 3-12 months) based on market conditions

Applies to insurance contracts issued on or after January 1, 1984, with an effective date of July 1, 2022