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 1525, July 5, 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:
(a) A detailed description of the Federal
			 Bank's or Federal Credit Union'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 and a description of its
			 procedures for the investigation and resolution of such complaints;
(b) Information demonstrating that the
			 Federal Bank or Federal Credit Union has established effective internal control
			 procedures and safeguards to ensure compliance with the consumer protection
			 terms and conditions prescribed by
			 211
			 CMR 142.05 and
			 142.09;
(c) Detailed information demonstrating that
			 the Federal Bank or Federal Credit Union 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, M.G.L. c. 93H, M.G.L.
			 c. 93I, and
			 201 CMR 17.00:
Standards for the Protection of Personal Information of Residents of
			 the Commonwealth
within the Federal Bank's or Federal Credit Union's
			 organization, including its affiliates, subsidiary corporations and third party
			 vendors, as well as to third parties; and
(d) A representation and undertaking that
			 insurance sales activities of the Federal Bank or Federal Credit Union will be
			 conducted in accordance with
			 211 CMR
			 142.00, and all other applicable state and federal
			 laws and regulations.