I need to do a memo:

Ms. James owns an insurance policy on her life. The policy has a cash surrender value (csv) and the insurance company allows its customers to borrow against the available (csv). To date, $20,000 in premiums have been pad and the policy has a cash surrender value of $55,000. To pay for an unexpected obligation, she had to borrow $55,000 from the insurance company. She is now considering canceling the policy. She would like to know what obligations she has to the insurance company and what are the possible federal tax consequences of these events. Summarize your findings in a research memo.