Under NY Insurance Law § 3203, what is the maximum fixed interest rate that a life insurer may charge on a policy loan against a NY life insurance policy with a fixed rate provision?

Why this is the answer

§ 3203 caps the fixed interest rate on a NY life policy loan at 8% per annum. As an alternative, the insurer may use an adjustable rate tied to Moody's Corporate Bond Yield Average, subject to disclosure requirements. The loan is secured by the policy's cash value; unpaid loan balance reduces the death benefit on a claim. Distractors 5%, 6%, and 10% are common cross-state numbers that don't apply in NY.