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Bill

A 6833

Relates to requirements for making of policy loans

2025 Regular Session Introduced by Vivian Cook and 6 co-sponsors

Bill A 6833 enhances transparency for policy loans by standardizing terms, requiring disclosures, and protecting policyholders from predatory lending practices.

REFERRED TO INSURANCE
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WeVote Research Nonpartisan
Bill Summary · A 6833

Summary of Bill A 6833

Bill Information

  • Bill Number: A 6833
  • Title: Relates to requirements for making of policy loans
  • Status: Referred to Insurance
  • Introduced: March 14, 2025
  • Classification: Bill

Purpose and Intent

Bill A 6833 aims to establish clearer requirements for the process of making policy loans by insurance companies. The intent is to enhance transparency and protect policyholders by ensuring that the terms and conditions surrounding policy loans are well-defined and accessible.

Key Provisions

While the specific text of the bill is not provided, based on the title and legislative context, the following key provisions can be anticipated:

  • Standardization of Loan Terms: The bill may propose standardized terms for policy loans, including interest rates, repayment schedules, and eligibility criteria.
  • Disclosure Requirements: Insurance companies might be required to provide detailed disclosures to policyholders regarding the implications of taking out a loan against their policy, including potential impacts on cash value and death benefits.
  • Consumer Protections: The legislation could include provisions aimed at safeguarding consumers from predatory lending practices within the insurance sector.

Who Would Be Affected

  • Policyholders: Individuals who hold insurance policies and may consider taking out loans against their policies will be directly impacted by the new requirements.
  • Insurance Companies: Insurers will need to adjust their policies and practices to comply with the new regulations, potentially affecting their operational procedures and loan offerings.
  • Regulatory Bodies: State insurance regulators may need to implement new oversight mechanisms to ensure compliance with the updated requirements.

Procedural Aspects

  • Current Status: As of March 14, 2025, the bill has been referred to the Insurance Committee for further consideration.
  • Related Bills: This bill is linked to several prior-session bills (A 6355, A 6350, A 6096, A 4171, A 4390, A 2366, A 4536, A 3385, A 5393) and has a companion bill in the Senate (S 3862), indicating ongoing legislative interest in the regulation of policy loans.

Conclusion

Bill A 6833 represents a legislative effort to improve the framework surrounding policy loans in the insurance industry. By establishing clearer requirements and protections, the bill seeks to enhance consumer confidence and ensure fair lending practices. As it progresses through the legislative process, stakeholders in the insurance sector and policyholders will be closely monitoring its developments.

Compiled from official sources — confirm details with the bill’s official record.

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