La. Admin. Code tit. 10 § III-343

Current through Register Vol. 50, No. 12, December 20, 2024

Section III-343 - General Provisions

A. Upon approval of the Commissioner of Financial Institutions, a state-chartered bank and/or its subsidiary and employees may engage in the sale of fixed or variable annuities and earn commissions thereon.

B. A state-chartered bank and/or its subsidiary and employees shall obtain any license(s) as may be required by and available from the Louisiana Department of Insurance before engaging in the sale of fixed or variable annuities.

C. In order to obtain approval, a state-chartered bank that desires to engage in the sale of fixed or variable annuities pursuant to this rule shall submit a written proposal covering the following items to the Commissioner of Financial Institutions:

1. a description of the type or types of annuities to be sold;

2. the name of each company whose annuities are to be sold and its most recent rating compiled by at least two nationally recognized rating services;

3. the name of each employee engaging in the sale of annuities;

4. a copy of the bank's policy with respect to the sale of annuities which shall include the following:

a. a description of the bank's program for servicing its customers who purchase annuities;

b. a description of the bank's marketing program;

c. copies of all annuity contracts and other documents which will be executed by the parties;

d. a statement that there will be no tying arrangements between the sale of annuities and other bank products.

D. A state-chartered bank that has been approved to engage in the sale of fixed or variable annuities must disclose in all advertising for the solicitation of such annuities and must advise any person seeking to purchase an annuity that the annuity is not a deposit of the bank and that the annuity is not insured by the Federal Deposit Insurance Corporation or any other federal or state agency. The bank must also have any purchaser of an annuity sign a disclosure statement prior to the time of purchase in the form substantially as follows:

ANNUITIES DISCLOSURE FORM

It is important to us that you understand that an annuity is different from other investments you may purchase from ______ Bank. Please consider the following factors when purchasing an annuity.

*The annuity product is an obligation of the ________________________ insurance company only. It is not an obligation of ________________________ Bank or its subsidiaries or affiliated companies.

*The annuity product is not insured by the Federal Deposit Insurance Corporation ("FDIC") or any other federal or state agency.

*Early withdrawals from your annuity may be subject to surrender charges, taxation as ordinary income, and an additional nondeductible excise tax.

You are encouraged to consult with a tax advisor familiar with your individual situation and needs in order to determine the federal, state, local and other tax consequences associated with annuities.

By signing below, you certify that you have read and understand the information contained in this disclosure.

Date: ________________________

Purchaser's Signature_______________

La. Admin. Code tit. 10, § III-343

Promulgated by the Department of Economic Development, Office of Financial Institutions, LR 19:612 (May 1993).

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:121, 6:242 and 6:5.