HB1161: relative to solicitation and marketing of insurance products.

CHAPTER 46

HB 1161 – FINAL VERSION

11Mar2004… 0477h

04/01/04 0926s

2004 SESSION

03-2075

01/10

HOUSE BILL 1161

AN ACT relative to solicitation and marketing of insurance products.

SPONSORS: Rep. Spiess, Hills 47

COMMITTEE: Commerce

ANALYSIS

This bill makes certain changes in the law governing sales of insurance products by financial institutions to conform to federal law.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11Mar2004… 0477h

04/01/04 0926s

03-2075

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to solicitation and marketing of insurance products.

Be it Enacted by the Senate and House of Representatives in General Court convened:

46:1 Sales of Insurance by Financial Institutions; Separation of Activities. Amend RSA 406-C:7, I to read as follows:

I. A financial institution shall, to the extent practicable, keep the area where the bank conducts transactions involving insurance products or annuities physically segregated from areas where retail deposits are routinely accepted from the general public [or credit transactions are conducted], identify the areas where insurance product or annuity sales activities occur, and clearly delineate and distinguish those areas from the areas where the bank’s retail deposit-taking activities [or credit transactions] occur[; provided that this section shall not apply to the sale of credit life insurance, credit accident and health insurance, mortgage life insurance and mortgage disability insurance, credit involuntary unemployment insurance, and private mortgage insurance issued under a certificate of a bank policy].

46:2 Prohibition on Tying of Banking and Insurance Products. Amend RSA 406-C:10, II to read as follows:

II. A financial institution that solicits, sells, advertises, or offers insurance, and any person who solicits, sells, advertises, or offers insurance on behalf of a financial institution or on the premises of a financial institution shall obtain written acknowledgment of the receipt of the disclosure from the customer at the time the customer receives the disclosure. If the solicitation is conducted by telephone, the person or financial institution shall obtain an oral acknowledgment of receipt of the disclosure, maintain sufficient documentation to show that the acknowledgment was given by the customer, and make reasonable efforts to obtain a written acknowledgment from the customer. If a customer affirmatively consents to receiving the disclosures electronically and if the disclosures are provided in a format that the customer may retain or obtain later, the person or financial institution, may provide the disclosure and obtain acknowledgment of the receipt of the disclosure from the customer using electronic media.

III. The completion of a loan transaction or other transactions involving the extension of credit shall not be delayed or impeded by an officer or employee of a financial institution for the purpose of influencing a customer’s selection or purchase of insurance.

46:3 Effective Date. This act shall take effect upon its passage.

(Approved: May 3, 2004)

(Effective Date: May 3, 2004)