209 CMR 49.02 - Applicability and Relationship to Other State and Federal Law
(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).
Notes
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