Bill > A06833

This bill requires that when an individual takes out a loan against their life insurance policy, the terms and conditions of the loan must now be documented in writing using at least ten-point type font, and must be signed by both the policyholder (insured) and the insurance agent. Additionally, the agent must provide a signed statement confirming that they have fully explained all the details of the policy loan to the policyholder. The bill amends the existing insurance law by adding two new provisions to the requirements for policy loans, with the goal of increasing transparency and ensuring that policyholders fully understand the terms of their loan. The new requirements will apply to all life insurance policies that are issued, reviewed, or modified sixty days after the bill becomes law, providing insurance companies and agents with time to adapt to the new documentation standards.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A6833