Consumer Protection for Bank Sales of Insurance
- The "Credit disclosures": must be given orally and in writing at the time of application if an insurance product is solicited, offered or sold in connection with credit request. Refer to Section 343.40(b).
- The "Insurance disclosure": must be given orally and in writing prior to the initial sale of an insurance product or annuity. Refer to Section 343.40(a).
Truth in Lending:
If the insurance is truly voluntary and you want to exclude the premiums from the finance charges, you must provide the disclosure outlined in Section 226.4(d)(1) [voluntary, disclosure the premium and term and the consumer signs or initials].
First published on BankersOnline.com 7/10/06