# 18 Del. Admin. Code § 1202: 18 DE Admin. Code 1202. Life Insurance Policy Loans, Maximum Rate of Interest [Formerly Regulation 19] > Delaware · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1202 ## Section - **Citation:** 18 Del. Admin. Code § 1202 - **Heading:** 18 DE Admin. Code 1202. Life Insurance Policy Loans, Maximum Rate of Interest [Formerly Regulation 19] - **Jurisdiction:** Delaware - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Delaware Administrative Code / Title 18 Insurance / 1200 Life Insurance & Annuities / 18 DE Admin. Code 1202 ## Text Title 18 Insurance 1200 Life Insurance & Annuities 1202 Life Insurance Policy Loans, Maximum Rate of Interest [Formerly Regulation 19] 1.0 Authority 1.1 18 Del.C. §314 of the Delaware Insurance Code authorizes the Insurance Commissioner to "... make reasonable Rules and Regulations necessary for or as an aid to the administration or effectuation of any provision of this Title." 1 8 Del.C. §2911 provides that the maximum rate of interest which may be charged by insurance companies on life insurance policy loans written after September 6, 1975 shall not exceed 8% per annum, or if payable in advance such interest shall not exceed the rate of 7.4% per annum. 1.2 18 Del.C. §2911 also contains the following new language: 1.2.1 "Before approving any policy provision providing for a rate of interest in excess of 6%, the Commissioner may require assurances by the insurer that the holders of such policies will benefit from the increased earnings of the insurer resulting from the use of such higher rates, through the use of higher dividends or lower premiums, or both." 2.0 Purpose This regulation is promulgated to designate the method by which all life insurance companies doing business in this State shall assure the Commissioner that the holders of life insurance policies employing higher interest rates will benefit from increased earnings resulting therefrom. 3.0 Compliance 3.1 Consistent with the foregoing discussion, actuarial assumptions and rate making methods shall be outlined in detail. The following guidelines shall be followed by an insurer when filing policy forms providing for a maximum policy loan interest rate in excess of 6%: 3.1.1 The minimum standard for the valuation of all policies and contracts shall be a change in the reserve value interest assumption of not less than one-half of 1%, and a comparison indicating a benefit for the insured/owner using the NAIC surrender cost index, or any other comparison such as the traditional net cost approach rms providing for a maximum policy loan interest rate in excess of 6%: 3.1.1 The minimum standard for the valuation of all policies and contracts shall be a change in the reserve value interest assumption of not less than one-half of 1%, and a comparison indicating a benefit for the insured/owner using the NAIC surrender cost index, or any other comparison such as the traditional net cost approach. 4.0 Effective Date This Regulation shall become effective this 30th day of March, 1976. ## Nearby sections - [18 Del. Admin. Code § 1201 18 DE Admin. Code 1201. Variable Contract Regulations [Formerly Regulation 1]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1201.md) - [18 Del. Admin. Code § 1202 18 DE Admin. Code 1202. Life Insurance Policy Loans, Maximum Rate of Interest [Formerly Regulation 19]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1202.md) - [18 Del. Admin. Code § 1203 18 DE Admin. Code 1203. Life Insurance Solicitation Regulation [Formerly Regulation 29]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1203.md) - [18 Del. Admin. Code § 1204 18 DE Admin. Code 1204. Replacement of Life Insurance [Formerly Regulation 30]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1204.md) - [18 Del. Admin. Code § 1205 18 DE Admin. Code 1205. Variable Life Insurance [Formerly Regulation 44]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1205.md) - [18 Del. Admin. Code § 1206 18 DE Admin. Code 1206. Mixed-gender Mortality Tables [Formerly Regulation 48]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1206.md) - [18 Del. Admin. Code § 1207 18 DE Admin. Code 1207. Smoker/Nonsmoker Mortality Tables [Formerly Regulation 49]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1207.md) - [18 Del. Admin. Code § 1208 18 DE Admin. Code 1208. New Annuity Mortality Table for Use in Determining Reserve Liabilities for Annuities](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1208.md) - [18 Del. Admin. Code § 1209 18 DE Admin. Code 1209. Life and Health Submissions Regarding Acquired Immunodeficiency Syndrome (AIDS) [Formerly Regulation 56]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1209.md) - [18 Del. Admin. Code § 1210 18 DE Admin. Code 1210. Life Insurance Illustrations [Formerly Regulation 62]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1210.md) - [18 Del. Admin. Code § 1211 18 DE Admin. Code 1211. Wellness Plan Regulation Guidelines for Corporate Life Insurance [Formerly Regulation 64]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1211.md) - [18 Del. Admin. Code § 1212 18 DE Admin. Code 1212. Valuation of Life Insurance Policies [Formerly Regulation 85]](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1212.md) - [18 Del. Admin. Code § 1213 18 DE Admin. Code 1213. Recognition Of The 2001 CSO Mortality Table For Use In Determining Minimum Reserve Liabilities And Nonforfeiture Benefits](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1213.md) - [18 Del. Admin. Code § 1214 18 DE Admin. Code 1214. Suitability In Annuity Transactions](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1214.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T18_1202. Check the current official text before relying on it. Not legal advice.