412:5-205.6 Requirements of banks engaging in insurance activities. (a) Pursuant to section 412:5-205.5 a bank may engage in insurance underwriting if the following requirements are met:

(1) The insurance underwriting activities shall be conducted in a separately capitalized subsidiary of the bank or affiliate of its bank holding company;

(2) A bank or the bank holding company that controls an insurance underwriting subsidiary shall be subject to article 11, chapter 431, relating to insurance company holding systems;

(3) The name of the insurance underwriting subsidiary or affiliate and any assumed business name used by it shall not be identical to that of the bank;

(4) The logo of the insurance underwriting subsidiary or affiliate shall not be identical to that of the bank; and

(5) In no event shall any liabilities or losses associated with the banking activities of the bank be recoverable through the Hawaii insurance guaranty association, the Hawaii life and disability insurance guaranty association, or the insurance guaranty fund of another state.

(b) Pursuant to section 412:5-205.5, a bank may engage in insurance sales through an independent insurance producer or a producer under contract. In addition, a bank may engage in insurance sales pursuant to section 412:5-205.5, either directly in any department or division of the bank or through a subsidiary or affiliate of the bank, subject to chapter 431.

(c) Upon receipt of the commissioner's approval under section 412:5-205.5, the bank or its subsidiary or affiliate shall obtain any necessary approvals from the insurance commissioner required under chapter 431 and any insurance administrative rules adopted under chapter 431 or the applicable insurance and banking laws of any jurisdiction other than this State in which the bank will be conducting its insurance and annuity activities. [L 1996, c 225, pt of 1; am L 2001, c 49, 1; am L 2003, c 212, 9]

 

Previous Vol08_Ch0401-0429 Next