Ga. Comp. R. & Regs. R. 80-5-4-.08 - Disclosures
(1) In order to
determine what types of disclosure are required, banks must be diligent in
their assessment of the nature of any nondeposit product. Products may take
various forms: e.g., investment products such a mutual funds or annuities, and
insurance products such as homeowners' insurance or life insurance. Hybrid
products with features of more than one category will necessitate compliance
with each category's requirements.
(2) Insurance Products. Many of the concerns
about customer confusion in bank sales of investment products may also be
present in bank sales of insurance products. Consequently, the disclosures
required for sale of insurance will be similar to those required for sale of
annuities and other investment products.
(a)
At the time of sale of an insurance product, the written disclosure below or
one which contains all its elements shall be made, except that if a financial
institution does not take deposits and is not insured by the FDIC, (i) may be
omitted.
1. The insurance products described
or referred to:
(i) Are not deposits and are
not insured by the FDIC;
(ii) Are
not obligations of, underwritten or guaranteed by the financial institution
selling the insurance product; and
(iii) Are not a condition to the provision or
term of any banking service or activity.
(b) The disclosures given to the customer
shall be conspicuous and presented in a clear and concise manner, with no
qualifying remarks.
(c) The
insurance agent shall deliver the written disclosure described in (a) to the
customer and shall receive back from the customer a signed statement that the
customer has read and understands the meaning of the disclosures. A copy of
this signed statement shall be given to the customer and retained by the
financial institution.
(d) In
addition to paragraph (2) of this Rule, the insurance agent shall, during
discussions of insurance products with the customer, make these disclosures
orally.
(3) Annuity
products. Disclosures are covered in Chapter 80-5-3 of the Department of
Banking and Finance's regulations.
(4) Nondeposit Investment Products. If an
insurance product contains investment features, compliance with federal law and
policy, such as the Interagency Statement on Retail Sales of Nondeposit
Investment Products including the disclosure requirements therein, where
applicable, as well as with the Department of Banking and Finance's statement
of policy for state chartered banks is required.
(5) Insurance agents shall identify
themselves to the customer as being either employees of the financial
institution or independent licensed insurance agents, as applicable. Business
cards and stationery shall indicate the agent's status as a state licensed
agent.
Notes
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