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 49.03 - Definitions

As used in 209 CMR 49.00, the following words shall, unless the context otherwise requires, have the following meanings:

Adequately Capitalized. A bank shall be deemed adequately capitalized if the institution meets the definition of an adequately capitalized institution as defined under the prompt corrective action provisions of the Federal Deposit Insurance Act, 12 U.S.C. § 1831(o), the Federal Deposit Insurance Corporation's Capital Adequacy Regulations, 12 CFR § 325.103, the Federal Credit Union Act, 12 U.S.C. § 1790d and the regulations promulgated by the NCUA.

Affiliate. An affiliate of a bank as defined by M.G.L. c.167A, § 1, or a credit union service organization as established pursuant to 12 U.S.C. § 1786a(e)(1) or by M.G.L. c. 171, §6A.

Applicant. A bank or lender seeking approval from the Commissioner to engage in insurance sales activities.

Bank. A bank shall include a state-chartered savings bank, co-operative bank, credit union or trust company or any other bank charter form established under the General Laws. A bank shall also include a Massachusetts branch of an out-of-state bank, as defined by M.G.L. c. 167, § 1, and a Massachusetts branch of a foreign credit union, as defined by M.G.L. c. 171, § 8A, provided, however, that the laws of such bank's chartering state authorize the exercise of such powers. Bank shall also include an affiliate, subsidiary corporation or third party vendor engaged in insurance sales activities on behalf of, or under contract with, a bank.

Bank Premises. A main office or branch office(s) of a bank or federal bank established under state or federal law or any other bank office, including a loan production office, in which consumer deposit or credit transaction may be effected. Bank Premises also shall include the offices of lenders. Electronic branches established by banks under M.G.L. c. 167C, §§ 1 and 12, and established by credit unions under M.G.L. c. 171, § 8A, are not defined as bank premises and are not authorized locations for insurance sales activities.

Commissioner. The Commissioner of Banks, including the Division of Banks, established under M.G.L. c. 26, § 1.

Company. An insurance company licensed pursuant to M.G.L. c. 175.

CRA. The Community Reinvestment Act established under M.G.L. c. 167, § 14 or comparable provisions of federal law, or M.G.L. c. 255E, § 8 for a lender, if applicable.

Division of Insurance. The Division of Insurance, including the Commissioner of Insurance, established under M.G.L. c. 26, § 1.

Federal Bank. A bank chartered by the United States subject to supervision and examination by the Office of the Comptroller of the Currency or any such successor federal bank regulatory agency or a credit union chartered by the United States under the Federal Credit Union Act and subject to supervision and examination by the National Credit Union Administration. Federal Bank shall also include an affiliate, subsidiary corporation or third party vendor engaged in insurance sales activities on behalf of, or under contract with, a federal bank.

Federal Bank Regulatory Agency. The Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the National Credit Union Administration or any other applicable federal bank regulatory agency.

Federal Conditions Governing the Sale of Insurance. The conditions established by the Comptroller of the Currency, the National Credit Union Administration and other federal regulatory agencies, by guideline or subsequent regulation, governing the sale of insurance products. Federal Conditions Governing the Sale of Insurance shall also include conditions prescribed by the federal bank regulatory agencies' Interagency Statement on Retail Sales of Mutual Funds and other Non-deposit Investment Products, to the extent applicable.

Insurance Sales Activities. The negotiating, soliciting or selling of insurance products in Massachusetts, as those terms are defined in M.G.L. c. 175, § 162H.

Interagency Agreement. The Interagency Agreement Relative to Bank Insurance Sales Consumer Complaint Resolution Procedures entered into by the Commissioner and the Division of Insurance pursuant to M.G.L. c. 167F § 2A(b)(9); M.G.L. c. 171, § 75B(b)(9); and M.G.L. c. 175, § 210.

Lender. A small loan company licensed pursuant to M.G.L. c. 140, § 96; a mortgage lender and a mortgage broker licensed pursuant to M.G.L. c. 255E; and a mortgagee subject to the provisions of M.G.L. c. 183, § 68. Lender shall also include an affiliate, subsidiary corporation or third party vendor engaged in insurance sales activities on behalf of, or under contract with, a lender.

Office of Consumer Affairs. The Office of Consumer Affairs and Business Regulation established under M.G.L. c. 24A, § 1.

Troubled Condition. A bank shall be deemed to be in troubled condition if it:

(a) has a composite rating of 4 or 5 under the Uniform Financial Institutions Rating System (CAMELS);

(b) is subject to a cease and desist order, a consent order, or a formal written agreement, unless otherwise informed in writing by the Commissioner or an applicable federal bank regulatory agency; or

(c) is informed in writing by the Commissioner or an applicable federal bank regulatory agency that as a result of an examination the bank has been designated in Troubled Condition for purposes of 209 CMR 49.05(1).