Rule 80-5-3-.04 - Agreement Between Independent Insurance/Annuity Agent or Agency and Financial Institution(1) An arrangement for the sale of annuities between an independent insurance/annuity agent or agency and a financial institution must be governed by a written agreement approved by the financial institution's board of directors. Such agreements will not be required if the agent is an employee of the financial institution. Compliance with the agreement should be periodically monitored by the financial institution's senior management. The agreement must set forth the responsibilities of the parties, the terms and conditions of the arrangement, and the compensation to be received by the financial institution. The agreement must also, at a minimum, contain provisions which: (a) Specify that each insurance/annuity agent will comply with all applicable laws and regulations;(b) Authorize the financial institution, the Department of Banking and Finance, and the Department of Insurance to have access to the financial institution's premises where the insurance/annuity agent conducts annuities sales in order to inspect books and records and other relevant information maintained by the insurance/annuity agent with respect to such annuity sales and to perform such related regulatory functions;(c) Authorize the financial institution to monitor the insurance/annuity agent and periodically review and verify that the insurance/annuity agent or agency and its representatives are complying with the agreement with the financial institution; and(d) Require the insurance/annuity agent or agency contracting with the financial institution to indemnify the institution from any liability resulting from unlawful, wrongful, improper actions or representations on the part of the insurance/annuity agent with regard to the sale of annuities in its association with the financial institution.Ga. Comp. R. & Regs. R. 80-5-3-.04
O.C.G.A Secs. 7-1-61, 7-1-261(11), 7-1-288.
Original Rule entitled "Agreement Between Independent/Annuity Agent or Agency and Financial Institution" adopted. F. July 18, 1996; eff. August 7, 1996.