Final answer:
The legitimate reason for not delaying a loan against the cash value of a life insurance policy is if it would be against regulations or the policy terms. The cash value acts as collateral, and the borrower must repay the loan with interest.
Step-by-step explanation:
The only legitimate reason a life insurance company could not delay a loan request against the cash value of a policy for the allowed 6-month period would be if doing so would violate use restrictions imposed by regulations or the policy's terms. Life insurance policies often have a cash value that policyowners can borrow against. However, the loan must be repaid with interest, and the insurer's procedure of delaying the loan might be contingent upon certain conditions, such as assessing the policy's current value, the policyowner's creditworthiness, and other policy terms. It's important for the policyowner to understand their rights and the insurer's internal processes in such situations.