Commercial Loans & Insurance Disclosures

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Question:

Under the GLB Act, is it a requirement to give the insurance disclosure which became effective 10/01/01 to an individual who is a guarantor on a commercial loan?

Answer:

If the only insurance solicitation is credit insurance related to the commercial loan, the answer would be "No". The GLB Insurance disclosures only pertain to insurance solicitation for consumer purposes.

If, however, your bank affiliated insurance agency solicits your loan guarantor to provide an auto insurance quote on his/her personal vehicle, this would require the insurance disclosures.

First published on BankersOnline.com 2/4/02