Life insurance — Indebtedness deducted from proceeds

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In determining the amount due under any life insurance policy issued, deduction may be made of:

  1. (1) Any unpaid premiums or installments thereof for the current policy year due under the terms of the policy; and

  2. (2) The amount of principal and accrued interest of any policy loan or other indebtedness against the policy then remaining unpaid.


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