Connecticut General Statutes 38a-718 – Restrictions on negotiation of insurance incidental to extension of credit
(a) As used in this section (1) “bank holding company” has the same meaning as provided in § 36-419, and (2) “lending institution” includes, but is not limited to, banks, savings and loan associations and credit unions.
Terms Used In Connecticut General Statutes 38a-718
- banks: shall include all incorporated banks. See Connecticut General Statutes 1-1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Insurance: means any of the lines of authority contained in this title. See Connecticut General Statutes 38a-702a
- Negotiate: means the act of conferring directly with, or offering advice directly to, a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers. See Connecticut General Statutes 38a-702a
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual or a business entity. See Connecticut General Statutes 38a-702a
- Personal property: All property that is not real property.
- Policy: means any document, including attached endorsements and riders, purporting to be an enforceable contract, which memorializes in writing some or all of the terms of an insurance contract. See Connecticut General Statutes 38a-1
(b) No person, partnership, association or corporation licensed under the provisions of § 38a-769, which is owned or controlled, directly or indirectly, by a bank holding company or lending institution, shall negotiate any policy of insurance applicable to any real or personal property which is security for an extension of credit by any lending institution, if approval of the transaction is contingent on the purchase of said insurance.
(c) The terms of this section shall not be construed to apply to any person, partnership, association or corporation owned or controlled by a bank holding company or any lending institution engaged in the activity prohibited hereby on December 31, 1971.