The life insurer shall do all of the following:
(1) Notify the policyholder at the time a cash loan is made of the initial rate of interest on the loan.
(2) Notify the policyholder with respect to premium loans of the initial rate of interest on the loan as soon as it is reasonably practical to do so after making the initial loan. Notice need not be given to the policyholder when a further premium loan is added, except as provided in paragraph (3).
(3) Send to policyholders with loans reasonable advance notice of any increase in the rate.
(4) Include in the required notices the substance of the pertinent provisions of subdivision (a) of Section 1232 and Section 1233.
(Added by Stats. 1982, Ch. 1351, Sec. 3.)