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Can you summarize 12 CFR Part 14?
COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY > CONSUMER PROTECTION IN SALES OF INSURANCE
Short Summary
This legal document, part of the Code of Federal Regulations, establishes consumer protections in the sales of insurance products or annuities. It applies to national banks, Federal savings associations, and other persons engaged in such activities on behalf of these institutions. The document defines various terms related to consumer protection in sales of insurance and clarifies their scope and applicability. It prohibits covered persons from engaging in practices that would mislead consumers regarding the purchase of insurance products or annuities or the backing or insurance coverage of these products. It also prohibits the consideration of an applicant’s status as a victim of domestic violence or provider of services to victims of domestic violence in insurance underwriting, pricing, renewal, coverage, or claims decisions. The document further requires covered persons to make specific disclosures to consumers regarding the nature of the insurance product or annuity, its relationship to the bank or Federal savings association, and the involvement of investment risk. It also provides guidelines for electronic disclosures and requires a written acknowledgment from the consumer. Additionally, the document mandates the physical segregation of areas where insurance sales activities occur from areas where retail deposits are accepted in banks and Federal savings associations. It allows individuals accepting deposits to refer consumers seeking insurance products or annuities to qualified persons, with the condition of receiving a one-time, nominal fee. The document does not specify any penalties for non-compliance. Overall, it aims to ensure consumer protection and clear separation of insurance activities within banks and Federal savings associations.
Whom does it apply to?
Any national bank or Federal savings association; or any other person engaged in such activities at an office of the national bank or Federal savings association, or on behalf of the national bank or Federal savings association
What does it govern?
Consumer protections in connection with retail sales practices, solicitations, advertising, or offers of any insurance product or annuity to a consumer
What are exemptions?
An operating subsidiary is subject to this part only to the extent that it sells, solicits, advertises, or offers insurance products or annuities at an office of a national bank or Federal savings association, or on behalf of a national bank or Federal savings association
What are the Penalties?
No specific penalties for non-compliance or violation are mentioned
Jurisdiction
U.S. Federal Government