Rule 80-5-4-.08 - Disclosures(1) In order to determine what types of disclosure are required, banks must be diligent in their assessment of the nature of any nondeposit product. Products may take various forms: e.g., investment products such a mutual funds or annuities, and insurance products such as homeowners' insurance or life insurance. Hybrid products with features of more than one category will necessitate compliance with each category's requirements.(2) Insurance Products. Many of the concerns about customer confusion in bank sales of investment products may also be present in bank sales of insurance products. Consequently, the disclosures required for sale of insurance will be similar to those required for sale of annuities and other investment products. (a) At the time of sale of an insurance product, the written disclosure below or one which contains all its elements shall be made, except that if a financial institution does not take deposits and is not insured by the FDIC, (i) may be omitted. 1. The insurance products described or referred to: (i) Are not deposits and are not insured by the FDIC;(ii) Are not obligations of, underwritten or guaranteed by the financial institution selling the insurance product; and(iii) Are not a condition to the provision or term of any banking service or activity.(b) The disclosures given to the customer shall be conspicuous and presented in a clear and concise manner, with no qualifying remarks.(c) The insurance agent shall deliver the written disclosure described in (a) to the customer and shall receive back from the customer a signed statement that the customer has read and understands the meaning of the disclosures. A copy of this signed statement shall be given to the customer and retained by the financial institution.(d) In addition to paragraph (2) of this Rule, the insurance agent shall, during discussions of insurance products with the customer, make these disclosures orally.(3) Annuity products. Disclosures are covered in Chapter 80-5-3 of the Department of Banking and Finance's regulations.(4) Nondeposit Investment Products. If an insurance product contains investment features, compliance with federal law and policy, such as the Interagency Statement on Retail Sales of Nondeposit Investment Products including the disclosure requirements therein, where applicable, as well as with the Department of Banking and Finance's statement of policy for state chartered banks is required.(5) Insurance agents shall identify themselves to the customer as being either employees of the financial institution or independent licensed insurance agents, as applicable. Business cards and stationery shall indicate the agent's status as a state licensed agent.Ga. Comp. R. & Regs. R. 80-5-4-.08
O.C.G.A. Secs. 7-1-61, 7-1-261(11).
Original Rule entitled "Disclosures" was f. on Feb. 17, 1997; eff. Mar. 10, 1997.