Alabama Code § 27-15-27

Deductions in Determining Amount Due Under Life Insurance
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In determining the amount due under any life insurance policy heretofore or hereafter issued, deduction may be made of: (1) Any unpaid premiums or installments thereof for the current policy year due under the terms of the policy; and (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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