Consumer Protection Insurance and A&H

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Question:

In light of the recent implementation of Regulation "Consumer Protection in Sales of Insurance," questions have arisen concerning the applicability of this regulation to deposit accounts including an accidental death insurance policy. The insurance policy is a part of a package of benefits that the customer pays a fee of $8$10. What is your interpretation of the regulation in regards to this matter?

Answer:

The agencies are interpreting the insurance rules broadly to apply to all sales of insurance. That being the case, you should treat the sale of this product as subject to the new disclosure rules.

First published on BankersOnline.com 1/7/02