209 CMR 49.05 - Application Process to Conduct Insurance Sales Activities
(1)
General. A bank
that is adequately capitalized, and has not been notified that it is in
troubled condition or that it is significantly undercapitalized, or a lender
that meets applicable statutory or regulatory net worth requirements, may
engage in insurance sales activities under
209 CMR 49.00, by submitting
an application to, and receiving approval from, the Commissioner; provided,
however, that such bank or lender also applies for and receives a license as an
insurance producer from the Division of Insurance pursuant to M.G.L. c. 175,
ยง 209 and
211 CMR
142.00: Insurance Sales by Banks and Credit
Unions, before commencing insurance sales activities.
(2)
Application. A
bank or lender must include in its application a complete description of its
proposed insurance sales activities, its investment in such activity, and any
other information the Commissioner may require.
(3)
Plan of
Operation. A bank or lender shall submit a plan of operation to
the Commissioner as part of the application process under 209 CMR 49.05. The
plan of operation shall contain:
(a) a
detailed description of the applicant's consumer complaint resolution
procedures, which shall include, but not be limited to, the names, addresses
and telephone numbers of designated personnel responsible for its enforcement;
a description of its procedures for forwarding copies of all consumer insurance
sales complaints to the Office of Consumer Affairs pursuant to
209
CMR 49.06(10)(a); and a
description of its procedures for the investigation and resolution of such
complaints under
209
CMR 49.06(10)(c);
(b) information demonstrating that the
applicant meets the financial managerial, capital or net worth, policy and
procedure, and other applicable eligibility requirements of
209 CMR
49.04;
(c) information demonstrating that the
applicant has established effective internal control procedures and safeguards
to ensure compliance with the consumer protection terms and conditions
prescribed by
209
CMR 49.06.
(d) detailed information demonstrating that
the applicant has established effective internal control procedures and
safeguards against the unauthorized release, dissemination, or sharing of
confidential customer information, including medical record information,
protected by M.G.L. c. 175I, within the applicant's organization, including its
affiliates, subsidiary corporations and third party vendors, as well as to
third parties; and
(e) a
representation and undertaking that insurance sales activities will be
conducted in accordance with
209 CMR 49.00, and all other
applicable state and federal law.
(4)
Conditions. Any
bank or lender granted an approval to conduct insurance sales activities
pursuant to 209 CMR 49.05 is deemed to have agreed to conduct such activity in
a manner consistent with applicable law, regulations and guidelines. The
Commissioner may also impose additional conditions in connection with any
approval granted under 209 CMR 49.05.
Notes
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