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Can you summarize 211 CMR 142?
Division of Insurance > Insurance sales by banks, credit unions and lenders
Short Summary
The document, 211 CMR 142.00, governs the insurance sales activities of banks, credit unions, and lenders in Massachusetts. It aims to ensure that these activities are conducted in compliance with the consumer protection laws of the Commonwealth. The document applies to State Banks, State-chartered Credit Unions, Lenders, Federal Banks, and Federal Credit Unions subject to M.G.L. c. 175, 209. It also includes affiliates, subsidiary corporations, and third-party vendors engaged in insurance sales activities on behalf of or under contract with these entities. However, certain authorities and branches are exempt from the document’s provisions. The document outlines the licensing and regulation requirements for insurance sales activities, including the need for banks and credit unions to be licensed by the Division of Insurance. It specifies that insurance sales activities must be conducted by licensed insurance producers and provides guidelines for submitting license applications. The document emphasizes the importance of compliance with federal conditions governing the sale of insurance, as well as the protection of confidential customer information and adherence to consumer protection terms and conditions. It also addresses the terms and conditions for the sale of insurance, including the physical separation of insurance sales activities from areas where retail deposits are accepted, the prohibition of tying credit availability to insurance purchases, and the need for clear disclosures to customers. The document also covers the processing of consumer complaints related to insurance sales activities and the potential penalties for non-compliance or violations. However, it does not specify any specific penalties. Overall, the document aims to regulate and ensure the proper conduct of insurance sales activities by banks, credit unions, and lenders in Massachusetts.
Whom does it apply to?
State Banks, State-chartered Credit Unions, Lenders, Federal Banks, and Federal Credit Unions subject to M.G.L. c. 175, 209. It also includes affiliates, subsidiary corporations, and third-party vendors engaged in insurance sales activities on behalf of or under contract with these entities.
What does it govern?
Insurance sales activities of banks, credit unions, and lenders in Massachusetts
What are exemptions?
The document does not apply to the authority granted by M.G.L. c. 167F, 2 paragraphs 16 and 17, M.G.L. 171, 75, seventh paragraph and ninth paragraph, and M.G.L. c. 255, 12G. It also does not apply to electronic branches established under M.G.L. c. 167B, which are not considered Bank premises and are not authorized for insurance sales activities. Banks and credit unions located outside of Massachusetts may be exempt from certain fees and requirements.
What are the Penalties?
The document does not specify any penalties for non-compliance or violations.
Jurisdiction
Massachusetts