Skip to content
GeoDataVision
Thread Options
#789683 - 08/05/07 10:00 PM Referral to affiliate
MT Pockets Offline
100 Club
Joined: Oct 2004
Posts: 238
Up North
Does the Consumer Protection in Sales of Insurance regulation apply to referrals by a lender to an affiliated insurance company for property or flood insurance?
_________________________
If you keep doing what you've always done, you'll get what you always got.

Return to Top
Lending Compliance
#789722 - 08/06/07 01:09 PM Re: Referral to affiliate MT Pockets
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,958
Bloomington, IN
I'm not sure if it would apply to referrals or not, however my Conservative side says a very definite maybe.

343.10 Purpose and scope.

This part establishes consumer protections in connection with retail sales practices, solicitations, advertising, or offers of any insurance product or annuity to a consumer by:
(a) Any bank; or
(b) Any other person that is engaged in such activities at an office of the bank or on behalf of the bank.



I think what has to be determined is if a referral to an affiliate is a "solicitation" of the insurance product.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#789849 - 08/06/07 02:58 PM Re: Referral to affiliate Dan Persfull
MT Pockets Offline
100 Club
Joined: Oct 2004
Posts: 238
Up North
That is exactly where I was stymied. Hopefully other compliance officers have dealt with this question and can provide info.
_________________________
If you keep doing what you've always done, you'll get what you always got.

Return to Top
#790029 - 08/06/07 06:09 PM Re: Referral to affiliate MT Pockets
Jerod Moyer Offline
Platinum Poster
Jerod Moyer
Joined: Oct 2005
Posts: 667
Sioux Falls, SD
The answer to your question is yes...maybe... It depends on whether or not the bank refers a consumer to a seller of insurance products or annuities and the bank has a contractual arrangement to receive commisions or fees derived from a sale of an insurance product or annuity resulting from that referral. 343.20(j)(2)(ii)
_________________________
Jerod Moyer
www.bankerscompliance.com

Return to Top

Moderator:  Andy_Z