Senate Bill No. 774
               Senate Bill No. 774

              PUBLIC ACT NO. 97-317


AN  ACT  CONCERNING   THE  SALE  OF  INSURANCE  BY
CONNECTICUT BANKS AND OUT-OF-STATE BANKS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1. Section  36a-250  of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    (a)   Except   as    otherwise   provided   in
[subsections (b) and  (c)]  SUBSECTION (b) of this
section, a Connecticut bank may:
    (1) Transact a  general  banking  business and
exercise by its governing board or duly authorized
officers or agents, subject to applicable law, all
such incidental powers  as  are necessary thereto.
The express powers  authorized  for  a Connecticut
bank under subdivisions (2) to (38), inclusive, of
this subsection do  not  preclude the existence of
additional powers deemed  to  be incidental to the
transaction of a general banking business pursuant
to this subdivision;
    (2) (A) Receive  deposits as authorized by and
subject to the  provisions  of sections 36a-290 to
36a-305,  inclusive,  section   36a-307,  sections
36a-315  to  36a-323,   inclusive,   and  sections
36a-330  to  36a-338,  inclusive,  including:  (i)
Savings deposits; (ii) time deposits; (iii) demand
deposits; (iv) public  funds  or  money  held in a
fiduciary capacity; (v)  school savings funds; and
(vi)  club  deposits;  and  (B)  pay  interest  or
dividends thereon;
    (3) Act as  a  depository  of  court and trust
funds;
    (4) Receive for  safekeeping  or otherwise all
kinds  of  personal  property,  including  papers,
documents and evidences of indebtedness;
    (5) Conduct a  safe  deposit  business  on its
banking premises;
    (6) Act (A)  as guardian or conservator of the
estate of any  person,  but not of the person, (B)
as a trustee, receiver, executor or administrator,
or  (C)  in  any  other  fiduciary  capacity,  all
without bond unless  a  bond  is  ordered  by  the
court;
    (7) Act as  agent  or attorney in fact for the
holders  of  securities  or  the  owners  of  real
estate;
    (8) Act as  transfer  agent  or  registrar  of
stocks and bonds;
    (9) Execute and  deliver  signature guaranties
as may be  incidental  or usual in the transfer of
investment securities;
    (10) Act as agent, fiscal agent or trustee for
any corporation or  for holders of bonds, notes or
other  securities, and  pledge  assets  to  secure
deposits in its  banking  department when (A) made
by it as  trustee  under a trust indenture for the
holders of revenue bonds issued by this state, any
municipality, district, municipal  corporation  or
authority or political  subdivision  thereof,  and
the express provisions  of  the  authority  or its
political subdivision, and  the express provisions
of the trust  indenture  require the deposit to be
so secured, (B)  made  by it as fiscal agent for a
housing   authority   in    connection    with   a
federally-assisted  housing  project  and  federal
regulations or other  requirements  call  for  the
deposits to be  so  secured  or  (C) made by it to
secure deposits in  individual retirement accounts
and    qualified   retirement    plan    accounts,
established  in  accordance  with  the  applicable
provisions of the  Internal  Revenue Code of 1986,
or any prior  or subsequent corresponding internal
revenue code of the United States, as from time to
time  amended,  where  such  deposits  exceed  the
maximum of federal deposit insurance available for
such accounts;
    (11) Act as fiscal agent for this state or any
of its political  subdivisions  when authorized by
the  executive  head  of  this  state  or  of  the
political subdivision;
    (12) Act as  agent  (A)  in  the collection of
taxes for any  qualified  treasurer  of any taxing
district or qualified  collector  of  taxes or (B)
for any electric,  gas, water or telephone company
operating within this  state  in  receiving moneys
due that company for utility services furnished by
it;
    (13) Act as  agent  for  the  sale,  issue and
redemption of obligations of the United States and
pledge assets to  the  United  States  or  to  the
proper federal reserve bank for its obligations as
that agent;
    (14)  (A)  Act   as   agent   for  an  insured
depository  institution  affiliate   in  receiving
deposits, renewing time  deposits,  closing loans,
servicing loans and  receiving  payments  on loans
and other obligations,  and  in so doing shall not
be considered to be a branch of such affiliate;
    (B) A Connecticut  bank  may  not  conduct any
activity as an  agent  under  subparagraph  (A) of
this subdivision which  such  bank  is  prohibited
from conducting as a principal;
    (15)  Act as  treasurer  of  any  organization
exempt from federal  income taxation under Section
501 of the  Internal  Revenue Code of 1986, or any
subsequent corresponding internal  revenue code of
the United States, as from time to time amended;
    (16) Establish a  charitable  fund,  either in
the form of  a  charitable  trust  or  a nonprofit
corporation  to  assist   in   making   charitable
contributions, provided (A) the trust or nonprofit
corporation is exempt from federal income taxation
and  may  accept  charitable  contributions  under
Section 501 of  the Internal Revenue Code of 1986,
or any subsequent  corresponding  internal revenue
code of the  United  States,  as from time to time
amended, (B) the  trust or nonprofit corporation's
operations  shall  be   disclosed   fully  to  the
commissioner  upon  request,  and  (C)  the  trust
department of the bank or one or more directors or
officers of the  bank act as trustees or directors
of the fund;
    (17) In the  discretion  of  a majority of its
governing board, make contributions or gifts to or
for the use of any corporation, trust or community
chest, fund or  foundation  created  or  organized
under the laws  of  the  United  States or of this
state and organized  and  operated exclusively for
charitable,   educational   or    public   welfare
purposes, or of  any  hospital which is located in
this state and which is exempt from federal income
taxes and to  which  contributions  are deductible
under Section 501(c)  of the Internal Revenue Code
of 1986, or  any subsequent corresponding internal
revenue code of the United States, as from time to
time amended;
    (18)  Discount,  purchase  and  sell  accounts
receivable,    negotiable    and     nonnegotiable
promissory notes, drafts,  bills  of  exchange and
other forms of indebtedness;
    (19) (A) Accept  for  payment  at future dates
drafts drawn upon  it,  and (B) except as provided
in section 36a-299,  sell  or issue without charge
negotiable checks or  drafts  drawn  by  or on the
bank. Negotiable checks  or  drafts drawn, sold or
issued by a  bank  may be drawn on that bank or be
payable by or through another bank or out-of-state
bank;
    (20)  Make secured  and  unsecured  loans  and
issue  letters of  credit  as  authorized  by  and
subject to section 36a-260;
    (21) (A) Issue  credit  cards  and debit cards
and enter into  card  agreements  with  the bank's
card holders and with other card issuers, (B) lend
money to individuals,  honor  drafts  and  similar
orders  drawn  or  accepted,  whether  by  written
instrument or electronic transmission, and pay and
agree to pay  obligations  incurred  in connection
with those agreements,  (C) become affiliated with
any credit card  corporation  or  association, and
(D)  subject  to   sections  36a-155  to  36a-159,
inclusive,  where applicable,  provide  electronic
fund transfer facilities  and  services  and enter
into agreements with  customers  and other persons
regarding the provision of such facilities;
    (22)   Provide  home   banking   services   to
customers as provided in section 36a-170;
    (23) Contract for  and  pay  the premiums upon
life insurance in the amount of the unpaid balance
due on loans;
    (24) Borrow money  and pledge assets therefor,
and pledge assets to secure trust funds on deposit
awaiting investment;
    (25) Enter into  leases  of  personal property
acquired upon the  specific request of and for the
use of a prospective lessee;
    (26) Make investments  as  authorized  by this
title;
    (27) Sell to  any  person, including any state
or federal agency  or instrumentality, any loan or
group  of  loans   legally   owned  by  the  bank,
repurchase any such  loan  or  group of loans, and
act as collecting,  remitting  and servicing agent
in connection with  any  such loans and charge for
its acts as  agent. Any such bank is authorized to
purchase the minimum  amount  of  capital stock of
the  applicable  agency   or   instrumentality  if
required  by  that   entity  to  be  purchased  in
connection with the  assignment  of  loans to that
entity and to hold and dispose of that stock;
    (28) With the  approval  of  the commissioner,
deal in and  underwrite,  to the same extent as is
permitted  to  a   national  banking  association,
obligations of: (A)  The  United  States or any of
its  agencies; (B)  any  state  or  any  political
subdivision or instrumentality of the state or (C)
Canada, any province  of  Canada  or any political
subdivision of Canada;
    (29) Issue and  sell  securities which (A) are
guaranteed  by  the   Federal   National  Mortgage
Association or any other agency or instrumentality
authorized by state  or  federal  law  to create a
secondary market with respect to loans of the type
originated by the  bank,  or  (B)  subject  to the
approval  of the  commissioner,  relate  to  loans
originated  by the  bank  and  are  guaranteed  or
insured by a  financial guaranty insurance company
or comparable private entity;
    (30)   Subject  to   the   approval   of   the
commissioner, authorize the  issuance  and sale of
evidences of indebtedness,  including  debentures,
debt instruments of  all  maturities  and  capital
notes, at such times, in such amount and upon such
terms as are  determined  by  the governing board,
provided  the  issuance   of   such  evidences  of
indebtedness which are payable on demand or mature
within five years  of  their issuance or which are
effected in the ordinary course of business do not
require  the approval  of  the  commissioner.  The
proceeds of such  evidences  of indebtedness which
mature after five  years  of  their issuance which
are subordinate to  the  claims of depositors upon
liquidation of the  bank  shall be considered part
of its capital  for  the  purpose of computing any
loan, deposit or  investment limitation under this
title;
    (31)  With  the  approval  of  and  upon  such
conditions and under  such  regulations  as may be
prescribed  or  adopted   by   the   commissioner,
establish and maintain  one  or  more mutual funds
and offer to  the  public shares or participations
therein;
    (32)  With  the   written   approval   of  the
commissioner: (A) Acquire,  alter  or improve real
estate for present  or  future use in the business
of  the  bank,   except   that   approval  of  the
commissioner  is not  necessary  in  case  of  the
alteration or improvement  of  real estate already
owned by the  bank  or a corporation controlled by
it  as  provided  in  subsection  (d)  of  section
36a-276, if the expenditure for such purposes does
not in any  one calendar year exceed five per cent
of the bank's equity capital and reserves for loan
and lease losses or five hundred thousand dollars,
whichever  is  less;   (B)  purchase  real  estate
adjoining any parcel  of real estate then owned by
it and acquired  in  the usual course of business,
provided  the aggregate  of  all  investments  and
loans authorized in  subparagraphs  (A) and (B) of
this subdivision and in the equipment used by such
bank in its  operations,  together with the amount
of any indebtedness  incurred  by  any corporation
holding real estate  of  the  bank and such bank's
proportionate share, computed  according  to stock
ownership, of any  indebtedness  incurred  by  any
service corporation, does  not  exceed  fifty  per
cent of the  equity  capital and reserves for loan
and  lease  losses   of   the   bank,  unless  the
commissioner finds that the rental income from any
part of the premises not occupied by the bank will
be sufficient to warrant larger investment;
    (33) Convey any real estate owned by it at the
price  and upon  such  terms  of  payment  as  its
governing board or an authorized committee thereof
determines and sets  forth  in the bank's records.
If any such sale is wholly or partly for credit, a
note secured by  a  first  mortgage  on  the  real
estate may evidence  that credit. With the written
approval of the  commissioner, the bank may accept
other real estate in whole or in part for any such
conveyance;
    (34) Establish and  maintain  an international
banking  facility,  as   defined   in  regulations
adopted by the  Board  of Governors of the Federal
Reserve System, subject to such regulations as the
commissioner may adopt, in accordance with chapter
54, to specify,  and impose restrictions upon, the
types of activities  in  which  the  international
banking facility may engage;
    (35) Join the Federal Reserve System;
    (36) With the  approval  of  the commissioner,
join the Federal  Home Loan Bank System and borrow
funds as provided under federal law;
    (37)  Even  if  not  expressly  authorized  to
exercise  fiduciary  powers,  act  as  trustee  or
custodian of a  plan  which qualifies as part of a
retirement plan for  self-employed  individuals or
an  individual  retirement   account   under   the
provisions of the  Internal  Revenue Code of 1986,
or any subsequent  corresponding  internal revenue
code of the  United  States,  as from time to time
amended, if the  governing  instrument  limits the
investment of the funds held pursuant to such plan
to the following investments: (1) Savings deposits
and  time  deposits;   and  (2)  with  respect  to
retirement  plans for  self-employed  individuals,
notes of members  in such plans which evidence the
indebtedness of such  members  for  funds borrowed
from the plans.  Funds  held  pursuant to any plan
which  so  qualifies   may  be  deposited  in  any
Connecticut bank without  regard  to any statutory
limit on the  amount  which  such bank may have on
deposit from one depositor;
    (38) Sell INSURANCE  AND  fixed  and  variable
annuities directly, [or]  sell  INSURANCE AND such
annuities indirectly through  [an  affiliate or] A
subsidiary,  OR  ENTER   INTO   ARRANGEMENTS  WITH
THIRD-PARTY MARKETING ORGANIZATIONS  FOR  THE SALE
BY  SUCH THIRD-PARTY  MARKETING  ORGANIZATIONS  OF
INSURANCE OR SUCH ANNUITIES ON THE PREMISES OF THE
CONNECTICUT   BANK  OR   TO   CUSTOMERS   OF   THE
CONNECTICUT BANK; provided  (A) such INSURANCE AND
annuities are ISSUED  OR  purchased  BY OR from an
insurance  company  licensed  in  accordance  with
section  38a-41, and  (B)  the  Connecticut  bank,
[affiliate or] subsidiary OR THIRD-PARTY MARKETING
ORGANIZATION, and any officer or employee thereof,
shall be licensed [in accordance with] AS REQUIRED
BY section 38a-769  before  engaging in any of the
activities authorized by this subdivision. As used
in this subdivision,  "annuities" [has the meaning
given to that  term] AND "INSURANCE" HAVE THE SAME
MEANINGS AS SET  FORTH  in  section  38a-1, EXCEPT
THAT "INSURANCE" DOES NOT INCLUDE TITLE INSURANCE.
The  provisions  of   this   subdivision   do  not
authorize a Connecticut  bank  [,  affiliate] or A
subsidiary OF A  CONNECTICUT  BANK  to  underwrite
INSURANCE OR annuities.
    [(b) Except as  otherwise  provided under this
section and section  36a-285,  no Connecticut bank
shall engage in  the  business  of marine, fire or
life  insurance, or  fidelity,  surety,  accident,
health, liability, credit,  title or other form of
casualty  insurance.  This  subsection  shall  not
apply  to  any  corporation  actually  engaged  on
January  1, 1907,  in  the  business  of  a  title
insurance and guarantee  company,  so  far  as the
right of such  company to continue the business of
title insurance and guarantee is concerned.]
    [(c)]  (b)  A   Connecticut   bank   which  is
organized  to  function   solely  in  a  fiduciary
capacity shall not  be  authorized to exercise any
of the powers  enumerated  in  this section to the
extent  that  such  exercise  would  cause  it  to
function otherwise than  in  a fiduciary capacity,
including,  but  not   limited  to,  receiving  or
holding deposits of  any  kind,  other  than  in a
fiduciary capacity, or  making  loans or otherwise
extending  credit,  other   than  in  a  fiduciary
capacity.
    [(d)]  (c)  A   Connecticut   bank   which  is
authorized to exercise  fiduciary  powers pursuant
to subsection (a)  of  this section shall exercise
such powers in  compliance  with the provisions of
sections 36a-350 to 36a-353, inclusive, 36a-365 to
36a-372, inclusive, 36a-380 to 36a-386, inclusive,
and 36a-395 to 36a-399, inclusive.
    Sec.  2.  Section   38a-702   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    In  sections 38a-703  to  38a-706,  inclusive,
38a-769 [,] AND 38a-774, [and 38a-775,] unless the
context or subject matter otherwise requires:
    (1) "Insurance producer"  or  "producer" means
any  person,  partnership,   association,  limited
liability company or  corporation,  or any person,
partnership,   association,   limited    liability
company or corporation  acting under a trade name,
or any member, stockholder, officer or employee of
such an entity,  holding a producer's license then
in  force  in   this   state,   and   which,   for
compensation, aids in  any  manner  or  acts  as a
representative on behalf  of an insured or client,
and  who  solicits   and  negotiates  coverage  of
insurance for the  public  without an agreement or
contract with any  specific insurance company, and
not as an  officer, traveling salaried employee or
appointed agent of  the  insurance  company,  or a
licensed producer holding  an agent's appointment.
A  producer's license  shall  not  be  used  as  a
substitute for an agent's appointment;
    (2)   "Insurance  agent"   means   a   person,
partnership,   association,   limited    liability
company   or   corporation,    or    any   person,
partnership,   association,   limited    liability
company or corporation  acting under a trade name,
holding an insurance  producer's  license  then in
force in this  state  and  a direct appointment in
writing, by any  insurance  company  authorized to
transact  business  in  this  state,  to  solicit,
negotiate  or  effect   contracts   of  insurance,
annuities or surety  on  behalf of such company or
any manager of  a limited liability company or any
member,  stockholder,  officer   or   agent  of  a
partnership,   association,   limited    liability
company    or   corporation,    or    partnership,
association,   limited   liability    company   or
corporation acting under  a  trade  name when that
individual is engaged  in  soliciting, negotiating
or  effecting such  contracts.  "Insurance  agent"
shall  not include  persons  acting  as  executive
officers or traveling  salaried  employees  of  an
insurance company authorized  to transact business
in this state.
    Sec.  3.  Section   38a-775   of  the  general
statutes  is  repealed   and   the   following  is
substituted in lieu thereof:
    [(a) As used  in  this  section:  (1) "Lending
institution" means any  institution  that  accepts
deposits and lends money, including banks, savings
and loan associations  and  credit unions, but not
including  insurance companies;  (2)  "affiliate",
"subsidiary" and related terms shall be defined as
in section 38a-1; (3) "bank holding company" means
and  includes  the  definition  of  such  term  in
Section 2 of an Act of Congress entitled the "Bank
Holding Company Act of 1956", as amended from time
to time; (4)  "commissioner"  means  the Insurance
Commissioner.
    (b) No license  authorizing  the  sale of fire
and casualty insurance shall be issued pursuant to
section 38a-769 to  (1)  a lending institution, or
(2)  a  bank   holding   company,   subsidiary  or
affiliate of a  lending  institution,  or  (3)  an
officer or employee  of  such lending institution,
bank  holding company,  subsidiary  or  affiliate,
provided this subsection  shall  not  apply to any
such person or  organization  which  was  lawfully
licensed to sell  fire  and  casualty insurance on
October 1, 1973.
    (c) No license  authorizing  the  sale of life
and health insurance  shall  be issued pursuant to
section 38a-769 to  (1)  a lending institution, or
(2)  a  bank   holding   company,   subsidiary  or
affiliate of a  lending institution, provided this
subsection   shall   not   apply   to   any   such
organization which was  lawfully  licensed to sell
life and health  insurance  on October 1, 1980, to
any savings bank  with respect to the sale of life
insurance  policies or  annuity  contracts  issued
pursuant  to  section   36a-285,  except  that  an
affiliate of a bank which was a nonbank before the
passage of the Competitive Equality Banking Act of
1987 and the  new  ownership  of  such nonbank was
approved  by the  Commissioner  of  Banking  under
section 36a-181 or  36a-185  on  or  before May 8,
1984, may be issued a license authorizing the sale
of life insurance. Life and health insurance shall
not include credit  life  insurance  as defined in
section  38a-646  or  group  life  and  disability
insurance  sold in  connection  with  real  estate
mortgage loans.
    (d)   Notwithstanding   the    provisions   of
subsection  (c)  of   this   section,   a  license
authorizing  the  sale   of   fixed  and  variable
annuities  may  be   issued  by  the  commissioner
pursuant to section  38a-769  to  (1)  a  bank, as
defined  in section  36a-2,  (2)  an  out-of-state
bank, as defined  in section 36a-2, that maintains
in this state  a  branch,  as  defined  in section
36a-410, or (3)  a  subsidiary, affiliate, officer
or employee of such bank or out-of-state bank. The
Insurance Commissioner shall adopt regulations, in
accordance with the  provisions  of chapter 54, to
carry out the  purposes  of  this subsection. Said
regulations shall include,  but  not be limited to
the   following  requirements:   (A)   Any   bank,
out-of-state bank or  subsidiary  or  affiliate of
such bank or out-of-state bank shall disclose that
an annuity is  not  insured  or  guaranteed by any
state or federal agency; (B) no bank, out-of-state
bank or subsidiary  or  affiliate  of such bank or
out-of-state bank may  require  or  imply  that  a
customer or prospective  customer must purchase an
annuity as a  condition  to  receiving  any  other
product  or  service   offered   by   such   bank,
out-of-state bank or  subsidiary  or  affiliate of
such bank or  out-of-state bank; and (C) any bank,
out-of-state bank or  subsidiary  or  affiliate of
such bank or out-of-state bank shall be prohibited
from providing any  financial  records, as defined
in section 36a-41,  to  any person for the purpose
of selling annuities  without  the  prior  written
consent of the customer.
    (e)  The  Insurance   Commissioner  may  adopt
regulations, in accordance  with the provisions of
chapter 54, in order to effectuate the purposes of
this section.]
    (a) AS USED IN THIS SECTION:
    (1) "BANK" HAS  THE  SAME MEANING AS SET FORTH
IN SECTION 36a-2,  BUT  DOES  NOT  INCLUDE A TRUST
COMPANY THAT DOES  NOT  ACCEPT  FEDERALLY  INSURED
DEPOSITS AND DOES NOT ENGAGE IN INSURANCE SALES OR
SOLICITATION   ACTIVITIES,  EITHER   DIRECTLY   OR
INDIRECTLY   THROUGH   A   THIRD-PARTY   MARKETING
ORGANIZATION,  THAT  WOULD   REQUIRE   SUCH  TRUST
COMPANY TO OBTAIN  AN INSURANCE PRODUCER'S LICENSE
UNDER THE LAWS OF THIS STATE;
    (2) "OUT-OF-STATE BANK"  HAS  THE SAME MEANING
AS  SET  FORTH  IN  SECTION  36a-2,  PROVIDED  THE
INSTITUTION (A) MAINTAINS  IN THIS STATE A BRANCH,
AS DEFINED IN  SECTION  36a-410, OR (B) ENGAGES IN
INSURANCE SALES OR SOLICITATION ACTIVITIES, EITHER
DIRECTLY  OR  INDIRECTLY   THROUGH  A  THIRD-PARTY
MARKETING  ORGANIZATION, THAT  WOULD  REQUIRE  THE
INSTITUTION  TO  OBTAIN  AN  INSURANCE  PRODUCER'S
LICENSE UNDER THE LAWS OF THIS STATE, BUT DOES NOT
INCLUDE  A TRUST  COMPANY  THAT  DOES  NOT  ACCEPT
FEDERALLY INSURED DEPOSITS  AND DOES NOT ENGAGE IN
INSURANCE SALES OR SOLICITATION ACTIVITIES, EITHER
DIRECTLY  OR  INDIRECTLY   THROUGH  A  THIRD-PARTY
MARKETING ORGANIZATION, THAT  WOULD  REQUIRE  SUCH
TRUST COMPANY TO  OBTAIN  AN  INSURANCE PRODUCER'S
LICENSE UNDER THE LAWS OF THIS STATE;
    (3) "SUBSIDIARY" HAS  THE  SAME MEANING AS SET
FORTH IN SECTION 36a-2;
    (4) "INSURANCE" HAS  THE  SAME  MEANING AS SET
FORTH IN SECTION 38a-1, BUT DOES NOT INCLUDE TITLE
INSURANCE;
    (5)   "CUSTOMER"   MEANS    ANY   PERSON   WHO
ESTABLISHES A DEPOSIT,  TRUST, INVESTMENT, LOAN OR
CREDIT ACCOUNT WITH  A  BANK, OUT-OF-STATE BANK OR
SUBSIDIARY OF SUCH BANK OR OUT-OF-STATE BANK;
    (6) "INSURANCE INFORMATION"  MEANS  COPIES OF,
OR  THE  INFORMATION   CONTAINED   IN,   INSURANCE
POLICIES, BINDERS, RATES,  DECLARATION  PAGES  AND
EXPIRATION DATES THAT  ARE  ACQUIRED  BY  A  BANK,
OUT-OF-STATE BANK OR  SUBSIDIARY  OF  SUCH BANK OR
OUT-OF-STATE BANK IN  CONNECTION  WITH ITS LENDING
ACTIVITIES; AND
    (7) "INSURANCE PRODUCER"  HAS THE SAME MEANING
AS SET FORTH  IN  SECTION  38a-702,  AS AMENDED BY
SECTION 2 OF THIS ACT.
    (b) ANY BANK,  OUT-OF-STATE BANK OR SUBSIDIARY
OF SUCH BANK  OR  OUT-OF-STATE BANK ENGAGED IN THE
SALE OF ANNUITIES OR LIFE INSURANCE IN THIS STATE,
OR  ANY LICENSED  INSURANCE  PRODUCER  THAT  SELLS
ANNUITIES  OR  LIFE   INSURANCE   RECOMMENDED   OR
SPONSORED BY OR ON THE PREMISES IN THIS STATE OF A
BANK, OUT-OF-STATE BANK OR SUBSIDIARY OF SUCH BANK
OR OUT-OF-STATE BANK,  SHALL  DISCLOSE  IN WRITING
PRIOR  TO OR  AT  THE  TIME  AN  ANNUITY  OR  LIFE
INSURANCE   PRODUCT   IS    PURCHASED,    IN   ANY
ADVERTISEMENT OR PROMOTIONAL  MATERIAL  SOLICITING
SALES OF ANNUITIES OR LIFE INSURANCE PRODUCTS, AND
ORALLY DURING ANY  SALES  PRESENTATION,  THAT  ANY
ANNUITY  OR  LIFE   INSURANCE   PRODUCT   OFFERED,
RECOMMENDED,  SPONSORED  OR  SOLD  (1)  IS  NOT  A
DEPOSIT, (2) IS NOT INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, (3)  IS  NOT  GUARANTEED BY
THE  BANK OR  OUT-OF-STATE  BANK,  AND  (4)  WHERE
APPROPRIATE, INVOLVES INVESTMENT  RISK,  INCLUDING
POTENTIAL   LOSS   OF    PRINCIPAL.    ANY   BANK,
OUT-OF-STATE BANK OR  SUBSIDIARY  OF  SUCH BANK OR
OUT-OF-STATE BANK THAT  DOES  NOT  ACCEPT  INSURED
DEPOSITS SHALL NOT  BE  REQUIRED  TO  PROVIDE  THE
DISCLOSURES REQUIRED BY  SUBDIVISIONS (1), (2) AND
(3) OF THIS SUBSECTION.
    (c)  (1)  NO   BANK,   OUT-OF-STATE   BANK  OR
SUBSIDIARY  OF  SUCH  BANK  OR  OUT-OF-STATE  BANK
ENGAGED IN THE  SALE  OF ANNUITIES OR INSURANCE IN
THIS STATE, AND  NO  LICENSED  INSURANCE  PRODUCER
THAT SELLS ANNUITIES  OR  INSURANCE RECOMMENDED OR
SPONSORED BY OR ON THE PREMISES IN THIS STATE OF A
BANK, OUT-OF-STATE BANK OR SUBSIDIARY OF SUCH BANK
OR OUT-OF-STATE BANK,  MAY REQUIRE OR IMPLY THAT A
CUSTOMER OR PROSPECTIVE  CUSTOMER MUST PURCHASE AN
ANNUITY  OR  INSURANCE   POLICY  FROM  SUCH  BANK,
OUT-OF-STATE BANK OR  SUBSIDIARY  OF  SUCH BANK OR
OUT-OF-STATE BANK AS  A CONDITION TO RECEIVING ANY
OTHER PRODUCT OR  SERVICE  OFFERED  BY  SUCH BANK,
OUT-OF-STATE BANK OR  SUBSIDIARY  OF  SUCH BANK OR
OUT-OF-STATE   BANK.   FOR    PURPOSES   OF   THIS
SUBDIVISION, "OTHER PRODUCT  OR  SERVICE" DOES NOT
INCLUDE  FINANCING IN  CONNECTION  WITH  INSURANCE
PRODUCTS BEING OFFERED OR SOLD.
    (2) ANY BANK,  OUT-OF-STATE BANK OR SUBSIDIARY
OF SUCH BANK OR OUT-OF-STATE BANK THAT MAKES LOANS
OR OTHER EXTENSIONS  OF  CREDIT AND ENGAGES IN THE
SALE OF INSURANCE  IN  THIS STATE, OR ANY LICENSED
INSURANCE  PRODUCER  THAT   SELLS   ANNUITIES   OR
INSURANCE RECOMMENDED OR  SPONSORED  BY  OR ON THE
PREMISES IN THIS  STATE  OF  A  BANK, OUT-OF-STATE
BANK OR SUBSIDIARY  OF  SUCH  BANK OR OUT-OF-STATE
BANK, SHALL DISCLOSE  TO  CUSTOMERS, IN CONNECTION
WITH A LOAN  OR  OTHER  EXTENSION  OF CREDIT WHERE
INSURANCE IS OFFERED  BY  SUCH  BANK, OUT-OF-STATE
BANK OR SUBSIDIARY  OF  SUCH  BANK OR OUT-OF-STATE
BANK, THAT INSURANCE  MAY  BE  PURCHASED  FROM  AN
INSURANCE PRODUCER OF  THE  CUSTOMER'S  CHOICE AND
THAT THE CUSTOMER'S  CHOICE  OF  ANOTHER INSURANCE
PRODUCER SHALL NOT  AFFECT  THE CREDIT DECISION OF
THE BANK, OUT-OF-STATE  BANK OR SUBSIDIARY OF SUCH
BANK OR OUT-OF-STATE  BANK.  FOR  PURPOSES OF THIS
SUBDIVISION, "LOAN OR  EXTENSION  OF  CREDIT" DOES
NOT INCLUDE FINANCING IN CONNECTION WITH INSURANCE
PRODUCTS BEING OFFERED OR SOLD.
    (3) IF ANY  INSURANCE,  OTHER THAN CREDIT LIFE
AND  DISABILITY  INSURANCE,   IS   REQUIRED  AS  A
CONDITION  OF OBTAINING  A  LOAN  FROM  ANY  BANK,
OUT-OF-STATE BANK OR  SUBSIDIARY  OF  SUCH BANK OR
OUT-OF-STATE  BANK  THAT   MAKES  LOANS  OR  OTHER
EXTENSIONS OF CREDIT  AND  ENGAGES  IN THE SALE OF
INSURANCE IN THIS  STATE,  THE  CREDIT TRANSACTION
AND THE INSURANCE  TRANSACTION  SHALL BE COMPLETED
INDEPENDENTLY AND THROUGH SEPARATE DOCUMENTS.
    (d)  (1)  NO   BANK,   OUT-OF-STATE   BANK  OR
SUBSIDIARY  OF  SUCH  BANK  OR  OUT-OF-STATE  BANK
ENGAGED IN THE  SALE  OF ANNUITIES OR INSURANCE IN
THIS STATE MAY  PROVIDE  ANY FINANCIAL RECORDS, AS
DEFINED IN SECTION  36a-41,  TO ANY PERSON FOR THE
PURPOSE OF SELLING  ANNUITIES OR INSURANCE WITHOUT
THE PRIOR WRITTEN  CONSENT OF THE CUSTOMER TO WHOM
SUCH FINANCIAL RECORDS PERTAIN.
    (2) NO BANK,  OUT-OF-STATE  BANK OR SUBSIDIARY
OF SUCH BANK  OR  OUT-OF-STATE BANK ENGAGED IN THE
SALE OF ANNUITIES  OR  INSURANCE IN THIS STATE MAY
USE ANY INSURANCE  INFORMATION  TO SOLICIT OR SELL
INSURANCE TO CUSTOMERS,  OR  PROVIDE ANY INSURANCE
INFORMATION TO A  THIRD  PARTY  IN CONNECTION WITH
THE  THIRD  PARTY'S   SOLICITATION   OR   SALE  OF
INSURANCE TO CUSTOMERS,  WITHOUT THE PRIOR WRITTEN
CONSENT OF THE  CUSTOMER  TO  WHOM  SUCH INSURANCE
INFORMATION PERTAINS.
    (e)    THE    INSURANCE    COMMISSIONER,    IN
CONSULTATION WITH THE COMMISSIONER OF BANKING, MAY
ADOPT REGULATIONS, IN  ACCORDANCE WITH CHAPTER 54,
TO  CARRY OUT  THE  PROVISIONS  OF  THIS  SECTION.
NOTHING IN THIS  SECTION  SHALL  BE  CONSTRUED  TO
LIMIT THE REGULATORY JURISDICTION OF THE INSURANCE
COMMISSIONER OVER THE  SALE  OF  INSURANCE IN THIS
STATE.
    Sec. 4. This  act  shall  take effect from its
passage.

Approved July 8, 1997