Banks' encroachment on insurers' turf pits state lawmakers against the OCC, and may well bring in Congress and the Supreme Court
Article Abstract:
Congress and the US Supreme Court may be needed to determine the extent of state control over federal statute and Office of the Comptroller of the Currency (OCC) decisions on banks' insurance business. Already, the OCC has used federal statutes to allow the sale of fixed and variable annuities by national banks to customers as well as allowing national banks in 5,000 or less person towns to sell insurance. Amendment of the Glass-Steagall Act of 1933 is being considered while the McCarran-Ferguson Act's state pre-emption of federal bank insurance business regulation is being questioned.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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Banks selling annuities may cause a turf battle; a Supreme Court decision allows banks to sell certain products traditionally sold by insurers
Article Abstract:
Recent court decisions give banks considerable leeway to compete against insurance companies in marketing and selling products that insurers have traditionally considered theirs alone. In two cases taken to the US Supreme Court by Variable Annuity Life Insurance, the court rules variable annuity contracts are not insurance and that banks may sell annuities. To qualify as insurance, a policy must transfer risk. This portends greater competition between banks and insurers, and possibly more federal regulation of insurers.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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Gordian knot of insurance: banks selling insurance must comply with a labyrinth of federal and state regulation
Article Abstract:
National banks and state chartered banks in several states have the right to sell annuities, life and property insurance. Significant organizational liability has been found by the courts. However, guidelines for the manner and means permissible in insurance sales transactions have created an industrywide uncertainty over how best to sell insurance while avoiding errors leading to banks' inevitable liability.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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