SALES OF INSURANCE BY SYSTEM INSTITUTIONS.

SEC. 422. SALES OF INSURANCE BY SYSTEM INSTITUTIONS. (a) In General.— Section 4.29 (12 U.S.C. 2218) is amended— (1) in subsection (a)— (A) by inserting “(1)” after the subsection designation; (B) by striking out “of this Act”; (C) by inserting “or borrower from” before “any such bank”; (D) by adding at the end thereof the following new sentence: “A member or borrower shall have the option, without coercion from the bank or association of such member or borrower, to accept or reject such insurance.”; and (E) by adding at the end thereof the following new paragraph: “(2) In making insurance available through private insurers, the banks shall approve the programs of more than two insurers for each type of insurance offered in the district. The banks may provide comparative information relating to costs and quality of approved programs and the financial conditions of approved companies. Associations shall offer at least two insurers for each program from among those approved by the Federal intermediate credit banks.”; and (2) in paragraph (2) of subsection (b)— (A) by redesignating clauses (i), (ii), and (iii), as subparagraphs (A), (B), and (C), respectively; (B) by striking out “and” in subparagraph (B) as so redesignated; (C) by striking out “and” in subparagraph (C) as so redesignated; and (D) by adding at the end thereof the following new subparagraphs: “(D) the insurance program has been approved by the bank or association from among specific programs made available to it by insurers— “(i) meeting reasonable financial and quality of service standards; and “(ii) licensed under State law to do business in the State; and “(E) in making insurance available through approved insurers, the board of directors of the association or bank 101 STAT. 1656selects and offers at least two approved insurers for each type of insurance made available to the members and borrowers; and”. (b) Continuation of Program.— Notwithstanding the amendments made to section 4.29 by subsection (a), any insurance program offered by any bank or association of the Farm Credit System on the date of the enactment of this Act that does not meet the requirements of section 4.29, as so amended, may be continued until July 1, 1988.