policy loan
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 291 U.S. 170 - Williams v. Union Central Life Insurance · 1934Most cited · 283 citing opinions
Such advances being against the surrender value do not create a 'personal liability' or a 'debt' of the insured, but are merely a deduction from the sum that the company 'ultimately must pay.' While the advance is called a 'loan' and interest is computed in settling the account, 'the item never could be sued for,' and in substance 'is a payment, not a loan.