Rule 80-5-4-.04 - Agreement Between Independent Insurance Agent or Agency and Financial Institution(1) An arrangement for the sale of insurance between an independent insurance 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 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 agent conducts insurance sales in order to inspect books and records and other relevant information maintained by the insurance agent with respect to such insurance sales and to perform related regulatory functions;(c) Authorize the financial institution to monitor the insurance agent and periodically review and verify that the insurance agent or agency and its representatives are complying with the agreement with the financial institution and with state and other applicable law; and(d) Require the insurance agent or agency contracting with the financial institution to indemnify the institution from any liability resulting from unlawful, wrongful, or improper actions or representations on the part of the insurance agent with regard to the sale of insurance in its association with the financial institution.Ga. Comp. R. & Regs. R. 80-5-4-.04
O.C.G.A. Secs. 7-1-61, 7-1-261(11).
Original Rule entitled "Agreement Between Independent Insurance Agent or Agency and Financial Institution" was f. on Feb. 17, 1997; eff. Mar. 10, 1997.