What is the maximum interest rate an insurer can charge on a policy loan for a life insurance policy issued on or after January 1, 1982 in California?

The maximum interest rate an insurer can charge on a policy loan for a life insurance policy issued on or after January 1, 1982, in California is set at 8%. This regulation is in place to protect policyholders from excessively high-interest rates that could make it difficult for them to repay their policy loans. Insurers are required to adhere to this limit when offering policy loans, providing a level of consistency and fairness across the industry.

Higher rates, such as 10%, would not comply with the regulatory framework established by California law, which aims to maintain consumer protections in matters related to life insurance policies. Additionally, the option suggesting that there is no maximum and that it varies by insurer is misleading because the law explicitly sets this limit to prevent practices that could adversely affect policyholders.