A life policy loan in North Carolina cannot charge a fixed rate of interest higher than?

In North Carolina, the law specifies that the maximum fixed interest rate that life insurance policies can charge on loans is 8%. This regulation is designed to protect policyholders from excessive interest rates, ensuring that they can access their policy's cash value without incurring overly burdensome costs.

Understanding this limit is crucial for agents and policyholders alike, as it ensures that borrowing against a life insurance policy remains an affordable option. It also reflects the state's effort to maintain fair lending practices within the insurance industry. The fixed rate applies to loans taken against the cash value of a life insurance policy, enabling consumers to make informed financial decisions regarding their policies.