# D.C. Code § 31-4705.04: Loan provisions in policies

> District of Columbia · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4705.04

## Section

- **Citation:** D.C. Code § 31-4705.04
- **Heading:** Loan provisions in policies
- **Jurisdiction:** District of Columbia
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** DC Code / Title 31 / Chapter 47 / § 31-4705.04

## Text

(a) In the case of ordinary policies issued prior to the operative date of § 31-4705.02 (the standard nonforfeiture law) the loan value referred to in paragraph (6) of subsection (a) of § 31-4703 shall be the reserve at the end of the current policy year on the policy and on the dividend additions thereto, if any, exclusive of the reserve on account of return premium insurance and of total and permanent disability and additional accidental death benefits, less a sum not more than 2 1/2% of the amount insured by the policy and of any dividend additions thereto (the policy to specify the mortality table and rate of interest adopted for computing such reserve). The policy may provide that such loan may be deferred for not exceeding 6 months after the application therefor is made. A company may, in lieu of the provision hereinabove permitted for the deduction from a loan on the policy of a sum not more than 2 1/2% of the amount insured by the policy and of any dividend additions thereto, insert in the policy a provision that one fifth of the said reserve may be deducted in case of a loan under the policy, or may provide therein that the deduction may be the said 2 1/2% or the one fifth of the said reserve at the option of the company.
(b) In the case of ordinary policies issued on or after the operative date of § 31-4705.02 (the standard nonforfeiture law) the loan value referred to in paragraph (6) of subsection (a) of § 31-4703 shall be the cash surrender value at the end of the current policy year as required by § 31-4705.02 . The company shall reserve the right to defer such loan, except when made to pay premiums, for 6 months after application therefor is made.

## Nearby sections

- [D.C. Code § 31-4701 § 31-4701. Valuation of reserves by Commissioner.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4701.md)
- [D.C. Code § 31-4702 § 31-4702. Companies issuing both participating and nonparticipating policies.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4702.md)
- [D.C. Code § 31-4703 § 31-4703. Life policies — Required provisions.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4703.md)
- [D.C. Code § 31-4704 § 31-4704. Life policies — Prohibited provisions.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4704.md)
- [D.C. Code § 31-4705 § 31-4705. Annuity and pure endowment contracts; forms to be filed and approved; required provisions; applications, riders and endorsements.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4705.md)
- [D.C. Code § 31-4705.01 § 31-4705.01. Nonforfeiture benefits and cash surrender values.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4705.01.md)
- [D.C. Code § 31-4705.02 § 31-4705.02. Standard nonforfeiture law — In general.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4705.02.md)
- [D.C. Code § 31-4705.03 § 31-4705.03. Standard nonforfeiture law — Individual deferred annuities.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4705.03.md)
- [D.C. Code § 31-4705.04 § 31-4705.04. Loan provisions in policies.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4705.04.md)
- [D.C. Code § 31-4706 § 31-4706. Extension of time for payment of premiums.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4706.md)
- [D.C. Code § 31-4707 § 31-4707. Ascertainment of loan indebtedness.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4707.md)
- [D.C. Code § 31-4708 § 31-4708. Filing and approval of life policy forms.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4708.md)
- [D.C. Code § 31-4709 § 31-4709. Policy provisions required by foreign government entities.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4709.md)
- [D.C. Code § 31-4710 § 31-4710. Group policies — General requirements.](https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4710.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_DC_T31_C47_S31-4705.04. Check the current official text before relying on it. Not legal advice.