Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 1140 - Division of Finance › Chapter 2 - Banks and Trust Companies › Section 20 CSR 1140-2.051 - Insurance Agencies Operated by State-Chartered Banks

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: National banks in places with populations of
				  five thousand persons or fewer are permitted by virtue of the National Banking
				  Act to operate insurance agencies which can sell all types of insurance.
				  State-chartered banks have not been given specific authority for this activity
				  leaving them at a competitive disadvantage especially where state and national
				  banks occupy the same place with populations of five thousand persons or fewer.
				  Expanding the authority will serve the public by providing convenient insurance
				  services at competitive prices. This rule also clarifies permissible
				  insurance-related activities for banks located in places with populations over
				  five thousand. Section
				  362.105,
				  RSMo explicitly empowers the director of finance, with the approval of the
				  State Banking Board, to issue rules granting powers and authorities to
				  state-chartered banks which would give competitive equality with
				  federally-chartered institutions. This rule authorizes insurance agencies in
				  state-chartered banks on the same basis as national banks are
				  authorized.
PUBLISHER'S NOTE: The secretary of state has
				  determined that the publication of the entire text of the material which is
				  incorporated by reference as a portion of this rule would be unduly cumbersome
				  or expensive. Therefore, the material which is so incorporated is on file with
				  the agency who filed this rule, and with the Office of the Secretary of State.
				  Any interested person may view this material at either agency's headquarters or
				  the same will be made available at the Office of the Secretary of State at a
				  cost not to exceed actual cost of copy reproduction. The entire text of the
				  rule is printed here. This note refers only to the incorporated by reference
				  material.
(1) State-chartered
				banks or their facilities in any place having a population of five thousand
				(5,000) persons or fewer according to the last decennial census are authorized
				to operate insurance agencies to the extent national banks are so authorized by
				12 U.S.C.
				92.
(2) A state-chartered bank may lease a
				portion of its premises to insurance agents or agencies. Where the lease
				involves an officer, director, employee affiliate or principal shareholder as
				defined in 4 CSR 140-2.050, those lease arrangements may not be for a period
				longer than one (1) year and must provide reasonable compensation to the bank;
				a minimum of twenty percent (20%) of the commissions generated shall be
				considered reasonable. A full accounting of the calculation of that
				compensation must be made to and approved by the bank's board of directors at
				the board's organization meeting following the annual stockholders' meeting;
				the details of the compensation, including gross commissions received by the
				agency, the portion received by the bank as compensation, and any fees or other
				payments made by the agency to the officers, directors, and principal
				shareholders, shall be entered into the board's minutes and disclosed to the
				shareholders at the annual shareholders' meeting.
(3) Income from the sale of any
				credit-related insurance shall be treated as though it were income from the
				sale of credit life insurance according to 4 CSR 140-2.050.
*Original authority: 361.105, RSMo 1967; 362.105, RSMo
					 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991,
					 1992.