(a) A life insurer may lend to its policyholder on the policy as collateral security an amount not exceeding the cash surrender value of the policy.
(b) A policy loan is an eligible reserve investment of a life insurer.
Md. Code Ann., Ins. § 5-508
Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.