Part 4: POWERS AND DUTIES OF FINANCIAL INSTITUTIONS
Chapter 44: SERVICES AND INCIDENTAL ACTIVITIES
§448. Insurance agency activities
A financial institution authorized to do business in this State or credit union authorized to do business in this State,
or financial institution holding company, or an affiliate of either, other than a licensed supervised lender regulated under
Title 9-A, Article IV, Part 4, may act as an insurance producer or consultant in this State and may employ, affiliate with
or hire as a 3rd-party agent an insurance producer or consultant, if the producer or consultant is duly licensed under Title
24-A or engages in authorized insurance activities in another state, if the producer or consultant complies with the applicable
laws of that state.
1999, c. 218, §23 (AMD)
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. "Affiliate" has the same meaning as defined in Title 24-A, section 1443-A, subsection 1, paragraph A. [1999, c. 127, Pt. A, §22 (AMD).]
B. "Customer" means a person or business entity or an authorized representative of either who has been personally and directly
offered, or presently maintains, an investment security, trust, credit or an insurance product with a financial institution
or credit union authorized to do business in this State. [1997, c. 315, §17 (NEW).]
1999, c. 127, Pt. A, §22 (AMD)
3.Customer notice that insurance is not federally guaranteed.
An institution that engages in insurance agency or brokerage activities authorized under subsection 1 must provide customer
notice regarding insurance products in the following manner.
A. The institution shall post conspicuously a notice that is clearly visible to all customers that may purchase insurance products
from the institution. The notice must state in clearly understandable language that the insurance is not insured by the Federal
Deposit Insurance Corporation or National Credit Union Administration, as applicable; [1997, c. 315, §17 (NEW).]
B. When a prospective purchaser of insurance is directly and personally contacted by the institution, the institution shall
orally inform that prospective purchaser of insurance that the insurance product is not insured by the Federal Deposit Insurance
Corporation or National Credit Union Administration, as applicable; and [1997, c. 315, §17 (NEW).]
C. Before the sale of an insurance product is completed the institution must obtain a written statement signed by the purchaser
of insurance that the purchaser received the oral notice required by paragraph B. [1997, c. 315, §17 (NEW).]
1997, c. 315, §17 (NEW)
4.Distinguishing insurance products from loan or deposit products; identification of insurance producers.
To the extent practicable, sales of insurance products authorized by this section must take place in a manner that minimizes
customer confusion between the deposit, share or loan products offered by the institution and those insurance products. An
institution authorized under subsection 1 is in compliance with this subsection if it utilizes signs clearly visible to its
customers that distinguish its insurance products from its deposit, share or loan products and that adequately identify insurance
producers and consultants affiliated with the institution.
1999, c. 218, §23 (AMD)
The superintendent, Superintendent of Insurance and the Superintendent of Consumer Credit Protection are authorized, pursuant
to this subsection, Title 9-A, section 4-407 and Title 24-A, section 1443-A, subsection 3 to undertake joint rulemaking to
carry out the purpose of subsection 4, including issues regarding signs, the physical location of sales of insurance and identification
of producers affiliated with financial institutions, credit unions, financial institution holding companies or supervised
lenders. In adopting rules pursuant to this section, the superintendent, the Superintendent of Insurance and the Superintendent
of Consumer Credit Protection shall consider the possibility of confusion and perception of coercion among the insurance consuming
public, the need for cost-effective delivery of insurance products to insurance consumers and the importance of parity among
producers affiliated with federally chartered and state-chartered financial institutions and credit unions. Any rule adopted
may not interfere significantly with the ability of a producer to solicit or negotiate the sale of an insurance product, whether
or not that producer is affiliated with a financial institution, credit union, financial institution holding company or supervised
lender, except when no other reasonable alternative exists to protect the insurance consuming public. Rules adopted under
this section are routine technical rules pursuant to Title 5, chapter 375, subchapter II-A. Nothing in this section is intended
to restrict or interfere with the ability of the bureau, the Bureau of Insurance or the Bureau of Consumer Credit Protection
to adopt rules with respect to areas in which the respective agencies have independent jurisdiction.
1999, c. 790, Pt. A, §10 (RPR);
2007, c. 273, Pt. B, §§5, 6 (REV);
2007, c. 695, Pt. A, §47 (AFF)
Other than the authorizations provided in subsection 1, this section does not apply to group health and group life insurance
to the extent authorized by Title 24-A, chapters 31 and 35 when the insured is enrolled in the insurance policy, credit life
and credit health insurance to the extent authorized by Title 24-A, chapter 37, credit property insurance, credit involuntary
unemployment insurance, forced placed property insurance, a vendor's single interest policy or any other insurance product
as determined by the Superintendent of Insurance. This section also does not apply to annuity sales authorized under section
443, subsection 11.
1997, c. 315, §17 (NEW)
1997, c. 315, §17 (NEW).
1999, c. 127, §§A22,23 (AMD).
1999, c. 218, §23 (AMD).
1999, c. 790, §A10 (AMD).
2007, c. 273, Pt. B, §§5, 6 (REV).
2007, c. 273, Pt. B, §7 (AFF).
2007, c. 695, Pt. A, §47 (AFF).
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