§1443-A. Licensing of financial institutions and related parties








1. Definitions. 
As used in this section, unless the context otherwise indicates, the following terms
have the following meanings.





A. "Affiliate" means any of the following entities:



(1) A subsidiary of a financial institution or credit union authorized to do business
in this State or of a financial institution holding company;






(2) An employee, an officer other than a director, or licensed 3rd-party producer
of a financial institution or credit union authorized to do business in this State,
a financial institution holding company or any institution listed in subparagraph
(1);






(3) A person or entity possessing 5% or more of the ownership interests of a financial
institution or credit union authorized to do business in this State, or of a financial
institution holding company or of any institution listed in subparagraph (1); or






(4) An insurer or insurance producer or consultant utilizing space in the retail
area of a financial institution or credit union authorized to do business in this
State or of a financial institution holding company or an institution listed in subparagraph
(1) in order to engage in the transaction of insurance when payments for use of the
space are made to the that institution pursuant to a space-sharing agreement based
directly or indirectly upon a percentage of the volume of business conducted by the
insurer, insurance agent, broker or consultant. [1997, c. 457, §23 (NEW); 1997, c. 457, §55 (AFF).]














B. "Credit union authorized to do business in this State" or "credit union" has the
same meaning as defined in Title 9-B, section 131, subsection 12-A. [1997, c. 457, §23 (NEW); 1997, c. 457, §55 (AFF).]











C. "Financial institution authorized to do business in this State" or "financial institution"
has the same meaning as defined in Title 9-B, section 131, subsection 17-A. [1997, c. 457, §23 (NEW); 1997, c. 457, §55 (AFF).]











D. "Financial institution holding company" has the same meaning as defined in Title
9-B, section 1011 and includes a mutual holding company as defined in Title 9-B, section
1052. [1997, c. 457, §23 (NEW); 1997, c. 457, §55 (AFF).]











E. "Licensed 3rd-party producer" means a licensed insurance producer or consultant
who engages in authorized insurance activities related to insurance products directly
on behalf of a specified licensed insurance entity through an independent contractor
relationship. [1997, c. 457, §23 (NEW); 1997, c. 457, §55 (AFF).]











F. "Ownership interest" includes general partnership shares, limited partnership shares
and shares of stock that possess any voting rights. [1997, c. 457, §23 (NEW); 1997, c. 457, §55 (AFF).]











G. "Subsidiary" means any corporation, partnership, association or other business entity
in which either:



(1) One or more financial institutions or credit unions authorized to do business
in this State, financial institution holding companies or any officers, employees,
agents or representatives of the financial institutions or credit unions authorized
to do business in this State or financial institution holding companies possess directly
or indirectly, singly or in the aggregate, an ownership interest of at least 25%;
or






(2) It is determined by the superintendent after notice and opportunity for hearing
that one or more financial institutions or credit unions authorized to do business
in this State, financial institution holding companies or any officers, employees,
agents or representatives of financial institutions or credit unions authorized to
do business in this State or financial institution holding companies, singly or in
the aggregate, exercise a controlling influence over the management and policies of
the entity. [1997, c. 457, §23 (NEW); 1997, c. 457, §55 (AFF).]











[
1997, c. 457, §23 (NEW);
1997, c. 457, §55 (AFF)
.]








2. Licensing. 
A financial institution or credit union authorized to do business in this State,
financial institution holding company or the subsidiary or affiliate of any of those
entities or an officer, employee, agent or representative of a financial institution,
credit union, financial institution holding company or the subsidiary of any of those
entities may be licensed as an insurance producer or consultant in this State or may
act as an insurance producer or consultant in this State. These organizations are
not required to become licensed as insurance producers or consultants with respect
to: credit life and credit health insurance to the extent authorized by chapter 37
when the insured is enrolled in the policy; group health insurance to the extent authorized
by chapter 35 when the insured is enrolled in the policy; and group life insurance
to the extent authorized by chapter 31 when the insured is enrolled in the policy;
credit property insurance; credit involuntary unemployment insurance; forced placed
property insurance; a vendor's single interest policy; and any other insurance product
as determined by the superintendent. In addition, a financial institution, credit
union, financial institution holding company or a subsidiary or employee of any such
entity may sell annuities, arrange for the sale of annuities or share commissions
in connection with the sale of annuities to the extent authorized by Title 9-B, section
443, subsection 11, if the entity has been licensed pursuant to this chapter and if
that activity includes the sale of variable annuity contracts, a national association
of securities dealers registration form must be submitted to the superintendent as
required by the provisions of section 1410, subsection 8.


[
2001, c. 259, §37 (AMD)
.]








3. Rulemaking. 
The superintendent, the Superintendent of Financial Institutions and the Superintendent
of Consumer Credit Protection may, pursuant to this subsection, Title 9-A, section
4-407 and Title 9-B, section 448, subsection 5, undertake joint rulemaking to carry
out the purpose of this section, including issues regarding signs, the physical location
of sales of insurance and identification of producers affiliated with financial institutions,
credit unions, financial institution holding companies or supervised lenders. In
adopting rules pursuant to this section, the superintendent, the Superintendent of
Financial Institutions and the Superintendent of Consumer Credit Protection shall
consider the possibility of confusion and perception of coercion among the insurance-consuming
public, the need for cost-effective delivery of insurance products to insurance consumers
and the importance of parity among producers affiliated with federally chartered and
state-chartered financial institutions and credit unions. Any rule adopted may not
interfere significantly with the ability of a producer to solicit or negotiate the
sale of an insurance product, whether or not that producer is affiliated with a financial
institution, credit union, financial institution holding company or supervised lender,
except when no other reasonable alternative exists to protect the insurance-consuming
public. Rules adopted under this section are routine technical rules pursuant to
Title 5, chapter 375, subchapter II-A. Nothing in this section is intended to restrict
or interfere with the ability of the bureau, the Bureau of Financial Institutions
or the Bureau of Consumer Credit Protection to adopt rules with respect to areas in
which the respective agencies have independent jurisdiction.


[
1997, c. 457, §23 (NEW);
1997, c. 457, §55 (AFF);
2001, c. 44, §11 (AMD);
2001, c. 44, §14 (AFF);
2007, c. 273, Pt. B, §§5, 6 (REV);
2007, c. 695, Pt. A, §47 (AFF)
.]





SECTION HISTORY

1997, c. 457, §23 (NEW).
1997, c. 457, §55 (AFF).
2001, c. 44, §11 (AMD).
2001, c. 44, §14 (AFF).
2001, c. 259, §37 (AMD).
2007, c. 273, Pt. B, §7 (AFF).
2007, c. 273, Pt. B, §§5, 6 (REV).
2007, c. 695, Pt. A, §47 (AFF).