LOANS ON LIFE ASSURANCE POLICIES.

Manawatu Standard, Volume LIII, Issue 20, 20 December 1932, Page 12

LOANS ON LIFE ASSURANCE POLICIES.

An important point dealt with in th© recent amendment of the National Expenditure Adjustment Act related to loans on life assurance policies. It appears that it was the intention of the Government to place such loans on the samo basis as mortgages of land, but that the Act did not clearly carry that intention into effect. Considerable doubt was thus left in the blinds of the life offices as to the proper and equitable method of treating policy loan accounts, having regard to the interest of the great majority of policy holders who havo not borrowed on their policies, as well as those of the small minority who have done so. The amending Act, however, has now clarified the position and we are informed by the manager of the A.M.P. Society that, so far as that institution is concerned, it is intended to adjust all such loan accounts right back to April 1 last, whether application by the policy-holder concerned is made, as required by the Act, or not. All accounts effected will be credited automatically with the rebate of interest without any application whntever on the part of the borrower. This action on the part of the A.M.P. commends itsolf as being in full keeping with the principles of equity which have always characterised that great mutual institution.