Texas § IN.1110.004 - MAXIMUM INTEREST RATE ON POLICY LOANS
Full text of Texas The Texas Constitution § IN.1110.004 — MAXIMUM INTEREST RATE ON POLICY LOANS, with citation guidance and answers to common questions.
§ IN.1110.004. MAXIMUM INTEREST RATE ON POLICY LOANS
MAXIMUM INTEREST RATE ON POLICY LOANS. (a) In this section, "published monthly average" means: (1) Moody's Corporate Bond Yield Average--Monthly Average Corporates as published by Moody's Investors Service, Inc., or a successor to that corporation; or (2) if the rate described by Subdivision (1) is no longer published, a substantially similar average established by rule of the commissioner. (b) A life insurance policy must include a provision for an interest rate on a policy loan that: (1) does not exceed 10 percent a year; or (2) is an adjustable maximum interest rate established from time to time by the life insurer as permitted by law and does not exceed the lesser of: (A) 15 percent a year; or (B) the greater of: (i) the published monthly average for the calendar month that ended two months before the date on which the rate is determined; or (ii) the rate used to compute the cash surrender values under the life insurance policy during the applicable period plus one percent per year. (c) This section also applies to the interest rate charged, on reinstatement of a policy loan, for the period during and after a lapse of the life insurance policy. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § IN.1110.004
What does The Texas Constitution § IN.1110.004 cover?
Section IN.1110.004 ("MAXIMUM INTEREST RATE ON POLICY LOANS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.1110.004?
A common citation format is "The Texas Constitution § IN.1110.004" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.1110.004 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.