CFR > Title 12 > Chapter I > Part 14 > § 14.40. What a covered person must disclose
Current as of: Jan. 2010
(a) Insurance disclosures. In connection with the initial purchase of an insurance product or annuity by a consumer from a covered person, a covered person must disclose to the consumer, except to the extent the disclosure would not be accurate, that:
(1) The insurance product or annuity is not a deposit or other obligation of, or guaranteed by, the bank or an affiliate of the bank;
(2) The insurance product or annuity is not insured by the Federal Deposit Insurance Corporation (FDIC) or any other agency of the United States, the bank, or (if applicable) an affiliate of the bank; and
(3) In the case of an insurance product or annuity that involves an investment risk, there is investment risk associated with the product, including the possible loss of value.
(b) Credit disclosure. In the case of an application for credit in connection with which an insurance product or annuity is solicited, offered, or sold, a covered person must disclose that the bank may not condition an extension of credit on either:
(1) The consumer's purchase of an insurance product or annuity from the bank or any of its affiliates; or
(2) The consumer's agreement not to obtain, or a prohibition on the consumer from obtaining, an insurance product or annuity from an unaffiliated entity.
(c) Timing and method of disclosures--(1) In general. The disclosures required by paragraph (a) of this section must be provided orally and in writing before the completion of the initial sale of an insurance product or annuity to a consumer. The disclosure required by paragraph (b) of this section must be made orally and in writing at the time the consumer applies for an extension of credit in connection with which an insurance product or annuity is solicited, offered, or sold.
(2) Exception for transactions by mail. If a sale of an insurance product or annuity is conducted by mail, a covered person is not required to make the oral disclosures required by paragraph (a) of this section. If a covered person takes an application for credit by mail, the covered person is not required to make the oral disclosure required by paragraph (b).
(3) Exception for transactions by telephone. If a sale of an insurance product or annuity is conducted by telephone, a covered person may provide the written disclosures required by paragraph (a) of this section by mail within 3 business days beginning on the first business day after the sale, excluding Sundays and the legal public holidays specified in 5 U.S.C. 6103(a). If a covered person takes an application for credit by telephone, the covered person may provide the written disclosure required by paragraph (b) of this section by mail, provided the covered person mails it to the consumer within three days beginning the first business day after the application is taken, excluding Sundays and the legal public holidays specified in 5 U.S.C. 6103(a).
(4) Electronic form of disclosures. (i) Subject to the requirements of section 101(c) of the Electronic Signatures in Global and National Commerce Act (12 U.S.C. 7001(c)), a covered person may provide the written disclosures required by paragraph (a) and (b) of this section through electronic media instead of on paper, if the consumer affirmatively consents to receiving the disclosures electronically and if the disclosures are provided in a format that the consumer may retain or obtain later, for example, by printing or storing electronically (such as by downloading).
(ii) Any disclosures required by paragraphs (a) or (b) of this section that are provided by electronic media are not required to be provided orally.
(5) Disclosures must be readily understandable. The disclosures provided shall be conspicuous, simple, direct, readily understandable, and designed to call attention to the nature and significance of the information provided. For instance, a covered person may use the following disclosures in visual media, such as television broadcasting, ATM screens, billboards, signs, posters and written advertisements and promotional materials, as appropriate and consistent with paragraphs (a) and (b) of this section: NOT A DEPOSIT NOT FDIC-INSURED NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT GUARANTEED BY THE BANK [OR SAVINGS ASSOCIATION] MAY GO DOWN IN VALUE
(6) Disclosures must be meaningful. (i) A covered person must provide the disclosures required by paragraphs (a) and (b) of this section in a meaningful form. Examples of the types of methods that could call attention to the nature and significance of the information provided include:
(A) A plain-language heading to call attention to the disclosures;
(B) A typeface and type size that are easy to read;
(C) Wide margins and ample line spacing;
(D) Boldface or italics for key words; and
(E) Distinctive type style, and graphic devices, such as shading or sidebars, when the disclosures are combined with other information.
(ii) A covered person has not provided the disclosures in a meaningful form if the covered person merely states to the consumer that the required disclosures are available in printed material, but does not provide the printed material when required and does not orally disclose the information to the consumer when required.
(iii) With respect to those disclosures made through electronic media for which paper or oral disclosures are not required, the disclosures are not meaningfully provided if the consumer may bypass the visual text of the disclosures before purchasing an insurance product or annuity.
(7) Consumer acknowledgment. A covered person must obtain from the consumer, at the time a consumer receives the disclosures required under paragraphs (a) or (b) of this section, or at the time of the initial purchase by the consumer of an insurance product or annuity, a written acknowledgment by the consumer that the consumer received the disclosures. A covered person may permit a consumer to acknowledge receipt of the disclosures electronically or in paper form. If the disclosures required under paragraphs (a) or (b) of this section are provided in connection with a transaction that is conducted by telephone, a covered person must:
(i) Obtain an oral acknowledgment of receipt of the disclosures and maintain sufficient documentation to show that the acknowledgment was given; and
(ii) Make reasonable efforts to obtain a written acknowledgment from the consumer.
(d) Advertisements and other promotional material for insurance products or annuities. The disclosures described in paragraph (a) of this section are required in advertisements and promotional material for insurance products or annuities unless the advertisements and promotional materials are of a general nature describing or listing the services or products offered by the bank.________________________________________________________________________
Questions & Answers: InsuranceU.S. Code Provisions: InsuranceState Laws: Insurance| Alabama | Alabama Code > Title 27 - Insurance | | Alaska | Alaska Statutes Title 21 - Insurance | | Arizona | Arizona Laws > Title 20 | | California | California Insurance Code | | Connecticut | Connecticut General Statutes > Title 38a - Insurance | | Delaware | Delaware Code Title 18 - Insurance Code | | Florida | Florida Statutes > Title XXXVII - Insurance | | Florida Regulations > Division 69B - Division of Insurance Agents and Agency Services | | Florida Regulations > Division 69D - Division of Insurance Fraud | | Florida Regulations > Division 69O - OIR - Insurance Regulation | | Florida Regulations > Division 69P - Residual Markets and Special Risk Pools | | Hawaii | Hawaii Revised Statutes Title 24 - Insurance | | Idaho | Idaho Code Title 28 > Chapter 44 - Insurance | | Idaho Code Title 41 - Insurance | | Illinois | Illinois Compiled Statutes > Chapter 20 > Department of Insurance | | Illinois Compiled Statutes > 45 ILCS 160 - Interstate Insurance Receivership Compact Act | | Illinois Compiled Statutes > 45 ILCS 162 - Interstate Insurance Product Regulation Compact | | Illinois Compiled Statutes > Chapter 215 - Insurance | | Indiana | Indiana Code > Title 27 - Insurance | | Iowa | Iowa Code Title XIII > Subtitle 1 - Insurance And Related Regulation | | Kansas | Kansas Statutes > Chapter 40 - Insurance | | Kansas Statutes > Chapter 75 > Article 41 - Surety Bonds And Insurance | | Louisiana | Louisiana Revised Statutes > Title 22 - Insurance | | Louisiana Revised Statutes > Title 36 > Chapter 17 - Department Of Insurance | | Maine | Maine Revised Statutes Title 24 - Insurance | | Maine Revised Statutes Title 24-A - Maine Insurance Code | | Maryland | Maryland Code > Insurance | | Massachusetts | Massachusetts General Laws > Part I > Title XXII > Chapter 174A - Regulation Of Rates For Fire, Marine And Inland Marine Insurance, And Rating Organizations | | Massachusetts General Laws > Part I > Title XXII > Chapter 175 - Insurance | | Massachusetts General Laws > Part I > Title XXII > Chapter 175A - Regulation Of Rates For Certain Casualty Insurance, Including Fidelity, Surety And Guaranty Bonds, And For All Other Forms Of Motor Vehicle Insurance, And Regulation Of Rating Organizations | | Massachusetts General Laws > Part I > Title XXII > Chapter 175B - Unauthorized Insurer's Process Act | | Massachusetts General Laws > Part I > Title XXII > Chapter 175C - Urban Area Insurance Placement Facility | | Massachusetts General Laws > Part I > Title XXII > Chapter 175D - Massachusetts Insurers Insolvency Fund | | Massachusetts General Laws > Part I > Title XXII > Chapter 175F - Medical Malpractice Self-Insurance Trust Funds | | Massachusetts General Laws > Part I > Title XXII > Chapter 175G - The Pollution Liability Reinsurance Corporation | | Massachusetts General Laws > Part I > Title XXII > Chapter 175J - Administrative Supervision And Hazardous Financial Conditions Of Insurities | | Massachusetts General Laws > Part I > Title XXII > Chapter 176L - Risk Retention And Risk Purchasing Groups | | Massachusetts General Laws > Part III > Title IV > Chapter 255C - Insurance Premium Finance Agencies | | Michigan | Michigan Laws > Chapter 3 > Act 679 of 2006 - Interstate Insurance Product Regulation Compact | | Michigan Laws > Chapter 500 - Insurance Code of 1956 | | Michigan Laws > Chapter 550 - General Insurance Laws | | Minnesota | Minnesota Statutes - Insurance | | Missouri | Missouri Laws > Title XXIV > Chapter 375 - Provisions Applicable to All Insurance Companies | | Missouri Laws > Title XXIV > Chapter 376 - Life, Health and Accident Insurance | | Missouri Laws > Title XXIV > Chapter 379 - Insurance Other Than Life | | Missouri Laws > Title XXIV > Chapter 382 - Insurance Holding Companies | | Missouri Laws > Title XXIV > Chapter 384 - Surplus Lines Insurance | | Missouri Laws > Title XXIV > Chapter 385 - Credit Insurance and Service Contracts | | Montana | Montana Code Title 33 - Insurance And Insurance Companies | | Nebraska | Nebraska Statutes > Chapter 44 - Insurance | | Nevada | Nevada Revised Statutes > Title 57 - Insurance | | New Hampshire | New Hampshire Revised Statutes > Title XXXVII - Insurance | | New Jersey | New Jersey Statutes > Title 17B | | New Mexico | New Mexico Statutes Chapter 11 > Article 19 - Interstate Insurance Product Regulation Compact | | New Mexico Statutes Chapter 59A - Insurance Code | | New York | New York Laws - Insurance | | New York | New York Laws > Insurance | | North Carolina | North Carolina General Statutes Chapter 58 - Insurance | | North Carolina General Statutes Chapter 66 > Article 44 - Free Insurance | | North Carolina General Statutes Chapter 143A > Article 9 - Department of Insurance | | North Dakota | North Dakota Code > Title 22 - Guaranty, Indemnity, and Suretyship | | North Dakota Code > Title 26.1 - Insurance | | Ohio | Ohio Code > Title 39 | | Oregon | Oregon Statutes > Title 56 - Insurance | | Rhode Island | Rhode Island General Laws > Title 27 - Insurance | | South Carolina | South Carolina Code > Title 37 > Chapter 4 - Insurance | | South Carolina Code > Title 38 - Insurance | | South Dakota | South Dakota Laws > Title 58 - Insurance | | Tennessee | Tennessee Code > Title 56 - Insurance | | Texas | Texas Insurance Code | | Texas Insurance Code - Not Codified | | Utah | Utah Code > Title 31A - Insurance Code | | Utah Code > Future Title 31A - Insurance Code | | Vermont | Vermont Statutes > Title 8 > Chapter 101 - Insurance Companies Generally | | Vermont Statutes > Title 8 > Chapter 111 - Fidelity, Surety and Annuity Companies | | Vermont Statutes > Title 8 > Chapter 112 - Life and Health Insurance Guaranty Association | | Vermont Statutes > Title 8 > Chapter 113 - Liability Insurance | | Vermont Statutes > Title 8 > Chapter 123 - Nonprofit Hospital Service Corporations | | Vermont Statutes > Title 8 > Chapter 125 - Nonprofit Medical Service Corporations | | Vermont Statutes > Title 8 > Chapter 127 - Insurance Rating Organizations | | Vermont Statutes > Title 8 > Chapter 129 - Insurance Trade Practices | | Vermont Statutes > Title 8 > Chapter 130 - Insurance Fraud | | Vermont Statutes > Title 8 > Chapter 131 - Licensing Requirements | | Vermont Statutes > Title 8 > Chapter 132 - Reciprocal Insurers | | Vermont Statutes > Title 8 > Chapter 133 - Debt Adjusters | | Vermont Statutes > Title 8 > Chapter 135 - Insurance Policies | | Vermont Statutes > Title 8 > Chapter 137 - Vermont Joint Underwriting Associations | | Vermont Statutes > Title 8 > Chapter 138 - Nonadmitted Insurers | | Vermont Statutes > Title 8 > Chapter 141 - Captive Insurance Companies | | Vermont Statutes > Title 8 > Chapter 142 - Risk Retention Groups and Purchasing Groups | | Vermont Statutes > Title 8 > Chapter 142A - Risk Retention Managing General Agents and Reinsur | | Vermont Statutes > Title 8 > Chapter 143 - Insurance Premium Finance Companies | | Vermont Statutes > Title 8 > Chapter 145 - Supervision, Rehabilitation and Liquidation of Ins | | Vermont Statutes > Title 8 > Chapter 155 - Disclosure of Material Transactions | | Vermont Statutes > Title 8 > Chapter 157 - Transfer and Assumption of Insurance Contracts | | Vermont Statutes > Title 8 > Chapter 159 - Risk Based Capital for Life and Health Insurers | | Vermont Statutes > Title 8 > Chapter 165 - Interstate Insurance Product Regulation Compact | | Virginia | Virginia Code Title 38.2 - Insurance | | West Virginia | West Virginia Code > Chapter 33 - Insurance | | Wisconsin | Wisconsin Statutes > Insurance |
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