LOANS ON LIFE ASSURANCE POLICIES

Timaru Herald, Volume CXXXVII, Issue 19372, 22 December 1932, Page 14

LOANS ON LIFE ASSURANCE POLICIES

A.M.P. SOCIETY GIVES LEAD. An important point dealt with in the 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 same basis as mortgages of land, but that the Act did not clearly carry that intention into effect. Considerable doubt was thus left in the minds 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 policyholders who have 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 it is the intention of the A.M.P. Society to adjust all such loan accounts right back to Ist April last, whether application by the policyholder concerned is made, as required by the Act, or not. All accounts affected will be credited automatically with the rebate of interest without any application whatever on the part of the borrower. This action on the part of the A.M.P. commends itself as being in full keeping with the principles of equity which have always characterised that great mutual institution