Code of Massachusetts Regulations
209 CMR - DIVISION OF BANKS AND LOAN AGENCIES
Title 209 CMR 49.00 - Insurance Sales by Banks and Credit Unions
Section 49.02 - Applicability and Relationship to Other State and Federal Law
Current through Register 1531, September 27, 2024
(1) General. 209 CMR 49.00 shall apply to banks and lenders as defined under 209 CMR 49.03 subject to the jurisdiction of the Commissioner of Banks. Federal banks, as defined in 209 CMR 49.03, that engage in insurance sales activities shall be governed by 209 CMR 49.06, which establishes consumer protection terms and conditions applicable to such activities. The Division of Insurance, however, shall enforce the terms and conditions found within 209 CMR 49.06 with respect to federal banks pursuant to M.G.L. c. 175, § 209, and 211 CMR 142.00: Insurance Sales by Banks and Credit Unions. All insurance sales activities of federal banks shall be conducted in accordance with plans of operation which conform to 209 CMR 49.05(3), submitted to, and approved by, the Division of Insurance under M.G.L. c. 175, § 209, and 211 CMR 142.00: Insurance Sales by Banks and Credit Unions.
(2) Insurance Producer Licensing Requirements. Any bank or lender authorized by the Commissioner to engage in insurance sales activity shall obtain a license as an insurance producer from the Division of Insurance prior to engaging in any such activity. Banks and lenders shall at all times maintain valid insurance producer licenses under M.G.L. c. 175, § 209 and shall conduct such business in full compliance with all applicable rules, regulations and directives of the Division of Insurance pertaining to licensing and the sale of insurance products.
(3) Federal Conditions Governing the Sale of Insurance. The conditions and limitations and other provisions contained in 209 CMR 49.00 are in addition to federal conditions governing the sale of insurance products. Banks and lenders shall comply with federal conditions governing the sale of insurance products. The terms and conditions set out in M.G.L. c. 167F, § 2A(b)(1) through (9), c. 171, § 75B(b)(1) through (9), 209 CMR 49.06, and 211 CMR 142.00: Insurance Sales by Banks and Credit Unions, however, shall control in the case of a conflict with such federal conditions.
(4) Annuity Products. Nothing in 209 CMR 49.00, shall prohibit a bank or lender from exercising its express or incidental powers to sell annuity products under state or federal law.
(5) Credit Insurance. 209 CMR 49.00 shall not apply to credit insurance activities of banks, federal banks or lenders pursuant to M.G.L. c. 167F, § 2(16) and (17); c. 171, § 75, seventh paragraph and ninth paragraph; or c. 255, § 12G, by virtue of c. 167F § 2A(d) and c. 171, § 75B(d).
