Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 142.00 - Insurance sales by banks, credit unions and lenders
Section 142.04 - Application and Licensing
Current through Register 1531, September 27, 2024
(1) No Bank may engage in insurance sales activities in Massachusetts unless licensed by the Division pursuant to M.G.L. c. 175, § 209, and 211 CMR 142.00. A State Bank or Federal Bank may apply to be licensed directly or indirectly through an affiliate or a subsidiary corporation established for this purpose. A State-chartered Credit Union or a Federal Credit Union may apply to be licensed directly or indirectly through an affiliate established for this purpose. If a Bank applies to be licensed directly or indirectly through an affiliate, it shall only engage in insurance sales activities through individual licensed insurance producers employed by the Bank or such affiliate. If a State Bank or Federal Bank applies to have a subsidiary corporation licensed as an insurance producer, then such subsidiary corporation shall be licensed in accordance with M.G.L. c. 175, § 174. Licensed individual insurance producers employed by such subsidiary corporation or affiliate may engage in insurance sales activities on Bank premises in accordance with St. 1998, c. 129, St. 2002, c. 454 and St. 2008, c. 423 and regulations promulgated thereunder. Prior to entering into a third-party agreement relative to the sale of insurance that includes the sharing of commissions with an insurance producer, any such Bank must first be licensed by the Division pursuant to M.G.L. c. 175, § 209.
(2) State Banks and State-chartered Credit Unions shall submit with the application a copy of the plan of operation for insurance sales activities for the State Bank or State-chartered Credit Union approved by the Division of Banks pursuant to 209 CMR 49.00: Insurance Sales by Banks and Credit Unions.
(3) Federal Banks and Federal Credit Unions shall submit with the application a statement that the Federal Bank or Federal Credit Union has complied with all federal conditions governing the sale of insurance. In addition to the statement, each Federal Bank or Federal Credit Union applying for a license under M.G.L. c. 175, § 209 shall submit with its application a plan of operation for insurance sales activities for the Federal Bank or Federal Credit Union which shall include the following:
(4) A fee shall accompany each application for a license issued under M.G.L. c. 175, § 209. The fee for a Bank to be licensed directly, or through an affiliate or a subsidiary corporation, shall be the same fee required by the corresponding application for a business entity insurance producer license issued under M.G.L. c. 175, § 162L, pursuant to M.G.L. c. 175, § 14.
(5) For State Banks, Federal Banks or Federal Credit Unions located wholly outside of Massachusetts, nothing in 211 CMR 142.00, shall be construed to prohibit a State Bank chartered in another state of the United States, a Federal Bank, a Federal Credit Union or any employees of such banks or credit unions, from applying for non-resident insurance producer licenses if such banks or credit unions are authorized to engage in insurance sales activities under applicable law; nor shall such State Banks, Federal Banks or Federal Credit Unions, if so licensed, be prohibited from owning an interest in an insurance agency or brokerage located in Massachusetts if such banks or credit unions are authorized to engage in insurance sales activities under applicable law.