Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 49.00 - Insurance Sales by Banks and Credit Unions › Section 49.03 - Definitions

Current through Register 1525, July 5, 2024
As used in
				209 CMR 49.00, the following
				words shall, unless the context otherwise requires, have the following
				meanings:
Adequately Capitalized
. A bank shall
				be deemed adequately capitalized if the institution meets the definition of an
				adequately capitalized institution as defined under the prompt corrective
				action provisions of the Federal Deposit Insurance Act, 12 U.S.C. §
				1831(o), the Federal Deposit Insurance Corporation's Capital Adequacy
				Regulations, 12 CFR § 325.103, the Federal Credit Union Act, 12 U.S.C.
				§ 1790d and the regulations promulgated by the NCUA.
Affiliate
. An affiliate of a bank as
				defined by M.G.L. c.167A, § 1, or a credit union service organization as
				established pursuant to 12 U.S.C. § 1786a(e)(1) or by M.G.L. c. 171,
				§6A.
Applicant
. A bank or lender seeking
				approval from the Commissioner to engage in insurance sales activities.
Bank
. A bank shall include a
				state-chartered savings bank, co-operative bank, credit union or trust company
				or any other bank charter form established under the General Laws. A bank shall
				also include a Massachusetts branch of an out-of-state bank, as defined by
				M.G.L. c. 167, § 1, and a Massachusetts branch of a foreign credit union,
				as defined by M.G.L. c. 171, § 8A, provided, however, that the laws of
				such bank's chartering state authorize the exercise of such powers.
Bank
shall also include an affiliate, subsidiary
				corporation or third party vendor engaged in insurance sales activities on
				behalf of, or under contract with, a bank.
Bank Premises
. A main office or branch
				office(s) of a bank or federal bank established under state or federal law or
				any other bank office, including a loan production office, in which consumer
				deposit or credit transaction may be effected.
Bank
				Premises
also shall include the offices of lenders. Electronic
				branches established by banks under M.G.L. c. 167C, §§ 1 and 12, and
				established by credit unions under M.G.L. c. 171, § 8A, are not defined as
				bank premises and are not authorized locations for insurance sales
				activities.
Commissioner
. The Commissioner of
				Banks, including the Division of Banks, established under M.G.L. c. 26, §
				1.
Company
. An insurance company licensed
				pursuant to M.G.L. c. 175.
CRA.
The Community Reinvestment Act
				established under M.G.L. c. 167, § 14 or comparable provisions of federal
				law, or M.G.L. c. 255E, § 8 for a lender, if applicable.
Division of Insurance
. The Division of
				Insurance, including the Commissioner of Insurance, established under M.G.L. c.
				26, § 1.
Federal Bank
. A bank chartered by the
				United States subject to supervision and examination by the Office of the
				Comptroller of the Currency or any such successor federal bank regulatory
				agency or a credit union chartered by the United States under the Federal
				Credit Union Act and subject to supervision and examination by the National
				Credit Union Administration.
Federal Bank
shall also
				include an affiliate, subsidiary corporation or third party vendor engaged in
				insurance sales activities on behalf of, or under contract with, a federal
				bank.
Federal Bank Regulatory Agency
. The
				Federal Deposit Insurance Corporation, the Board of Governors of the Federal
				Reserve System, the Office of the Comptroller of the Currency, the National
				Credit Union Administration or any other applicable federal bank regulatory
				agency.
Federal Conditions Governing the Sale of
				Insurance
. The conditions established by the Comptroller of the
				Currency, the National Credit Union Administration and other federal regulatory
				agencies, by guideline or subsequent regulation, governing the sale of
				insurance products.
Federal Conditions Governing the Sale of
				Insurance
shall also include conditions prescribed by the federal
				bank regulatory agencies' Interagency Statement on Retail Sales of Mutual Funds
				and other Non-deposit Investment Products, to the extent applicable.
Insurance Sales Activities
. The
				negotiating, soliciting or selling of insurance products in Massachusetts, as
				those terms are defined in M.G.L. c. 175, § 162H.
Interagency Agreement
. The Interagency
				Agreement Relative to Bank Insurance Sales Consumer Complaint Resolution
				Procedures entered into by the Commissioner and the Division of Insurance
				pursuant to M.G.L. c. 167F § 2A(b)(9); M.G.L. c. 171, § 75B(b)(9);
				and M.G.L. c. 175, § 210.
Lender
. A small loan company licensed
				pursuant to M.G.L. c. 140, § 96; a mortgage lender and a mortgage broker
				licensed pursuant to M.G.L. c. 255E; and a mortgagee subject to the provisions
				of M.G.L. c. 183, § 68.
Lender
shall also include
				an affiliate, subsidiary corporation or third party vendor engaged in insurance
				sales activities on behalf of, or under contract with, a lender.
Office of Consumer Affairs
. The Office
				of Consumer Affairs and Business Regulation established under M.G.L. c. 24A,
				§ 1.
Troubled Condition
. A bank shall be
				deemed to be in troubled condition if it:
(a) has a composite rating of 4 or 5 under the Uniform
				Financial Institutions Rating System (CAMELS);
(b) is subject to a cease and desist order, a consent order, or
				a formal written agreement, unless otherwise informed in writing by the
				Commissioner or an applicable federal bank regulatory agency; or
(c) is informed in writing by the Commissioner or an applicable
				federal bank regulatory agency that as a result of an examination the bank has
				been designated in
Troubled Condition
for purposes of
				209 CMR
				49.05(1).