Life · Chapter 5 · Cash Value
Automatic Premium Loan (APL)
Definition
Anti-lapse provision: if a premium is missed and the grace period ends, the insurer automatically loans the premium from the cash value. In Florida, if the application offers APL it is deemed elected unless the applicant affirmatively declines it.
Exam tip
⚠️ Florida trap: APL is opt-out, not opt-in (F.S. 627.4556). Repeated use still depletes cash value and can eventually lapse the policy.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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