Purpose and Scope

The purpose of 209 CMR 49.00 is to establish the application and approval procedures for banks, credit unions and lenders seeking to exercise insurance sales agency powers pursuant to M.G.L. c. 167F, § 2A and St. 1998, c. 129; and M.G.L. c. 171, §75B and St. 2002, c. 454, under licenses issued by the Division of Insurance pursuant to M.G.L. c. 175, § 209 and 211 CMR 142.00: Insurance Sales by Banks and Credit Unions. Terms and conditions governing the insurance sales activities and practices are also prescribed. The terms and conditions set forth in 209 CMR 49.06 are consumer protections mandated by M.G.L. c. 167F, § 2A(b)(1) through (9) and M.G.L. c. 171, §75B(b)(1) through (9) which ensure that such business is conducted in accordance with the consumer protection laws of the Commonwealth. These provisions are also applicable to federally chartered banks and credit unions pursuant to the cross reference set out in M.G.L. c. 175, §209. References to banks and federal banks shall include credit unions consistent with the definition of a bank or a federal bank.