1. Credit risk: Life insurance policy involves three subjects: the applicant, the insured and the beneficiary. The ownership of its cash value belongs to the insured, and the insured has the right to terminate the insurance contract. Therefore, the borrower who pledges the life insurance policy must be consistent with the insured who pledges the policy. That is, only the insured can become the credit subject of the policy pledge loan. If the borrower does not have the above qualifications, it will inevitably lead to the invalidation of the bank loan rights.

2. Risk of the pledged subject matter: According to the relevant provisions of the Insurance Law, the pledge policy for applying for a loan must be true and effective and meet the pledge conditions. As a pledge, the life insurance policy must be insured for more than two years and the insured must pay for more than two years. That is, only when the insurance period and the payment period are met at the same time, the life insurance policy has cash value.

3. Legal risk: once the principle of fairness is violated, the effectiveness of the contract may be affected, and the adequacy and effectiveness of stakeholders using laws and regulations to protect their own interests may be affected, thus making the loan potentially risky.

Extended data:

Precautions:

1. Strengthen the investigation and review of loans, improve the procedures for setting pledge rights, and clarify the risk prevention and control measures for policyholders. The loan subject should be clearly defined as the life insurance applicant, and the identity of the applicant is a natural person. The identity of the insured and the borrower is the fundamental premise to prevent credit risk.

2. Strengthen the cooperation between banks and insurance companies, and restrict or freeze certain rights of policyholders in order to preserve the cash value of policies. In order to protect the rights of the pledgee, it should be clearly stipulated in the loan contract that after the policy is pledged, the right of the insured to terminate the insurance contract and report the loss of the policy is restricted. When the applicant requests to terminate the insurance contract and report the loss of the policy, he should obtain the consent of the pledgee, that is, the commercial bank.

3. Strictly inspect the borrower's repayment ability and credit status to ensure the safety of credit funds. First, strict customer credit investigation procedures, fully investigate the first repayment source, analyze the borrower's credit status and repayment ability, truthfully enter the customers who meet the loan conditions into the customer information systems of commercial banks and insurance companies, strictly control the proportion of loans, and strictly prohibit excessive illegal lending.

Baidu Encyclopedia-Policy Pledge Loan

Baidu encyclopedia-policy mortgage loan

Baidu encyclopedia-harm