Rule 120-2-76-.01 - Sale of Insurance by Financial Institutions(1) Insurance may be sold by certain lending institutions, bank holding companies, or subsidiaries or affiliates of either of the foregoing doing business in this State. However, insurance is underwritten by insurers and sold by insurance agents. Therefore, the purpose of this Regulation Chapter is to specify the requirements for the sale of insurance products by lending institutions, bank holding companies, and their subsidiaries and affiliates.(2) Nothing in this Regulation Chapter shall authorize any of the following activities by a lending institution, bank holding company, or subsidiary or affiliate of either: (a) The sale of any insurance product that is not underwritten by an insurer which has a certificate of authority to transact business in Georgia;(b) Failure to comply with the licensing requirements for agents and agencies;(c) Failure to comply with any other provisions of this Regulation Chapter with respect to the sale of insurance.(d) Failure to comply with Title 33 of the Official Code of Georgia Annotated or the Rules and Regulations of the Commissioner of Insurance of the State of Georgia.(e) Failure to comply with Title 7 of the Official Code of Georgia or the Rules and Regulations of the Department of Banking and Finance.(3) These regulations do not negate or affect the following: exceptions set out in O.C.G.A. § 33-3-23 such as sale and underwriting of credit insurance (O.C.G.A. § 33-3-23(b)); sale of products regulated by O.C.G.A. § 33-23-12(b)(3); and insurance sold pursuant to Regulation §120-2-11, all of which are otherwise regulated by the Office of Commissioner of Insurance.Ga. Comp. R. & Regs. R. 120-2-76-.01
O.C.G.A. Secs. 33-2-9, 33-3-23.
Original Rule entitled "Sale of Insurance by Financial Institutions" adopted. F. Feb. 18, 1997; eff. Mar. 10, 1997.