Sec. 9. (a) This section applies as follows:

(1) To an affiliate of a depository institution only to the extent that the affiliate sells, solicits, advertises, or offers insurance at the office of a depository institution or on behalf of a depository institution.

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Terms Used In Indiana Code 27-1-38-9

  • affiliate: means a company that controls, is controlled by, or is under common control with another company. See Indiana Code 27-1-38-1
  • depository institution: means a depository financial institution (as defined in IC 28-9-2-6). See Indiana Code 27-1-38-3
  • in writing: include printing, lithographing, or other mode of representing words and letters. See Indiana Code 1-1-4-5
  • Insurance: means a contract of insurance or an agreement by which one (1) party, for a consideration, promises to pay money or its equivalent or to do an act valuable to the insured upon the destruction, loss or injury of something in which the other party has a pecuniary interest, or in consideration of a price paid, adequate to the risk, becomes security to the other against loss by certain specified risks; to grant indemnity or security against loss for a consideration. See Indiana Code 27-1-2-3
  • person: includes individuals, corporations, associations, and partnerships; personal pronoun includes all genders; the singular includes the plural and the plural includes the singular. See Indiana Code 27-1-2-3
(2) To the:

(A) sale of;

(B) solicitation for; or

(C) application for;

insurance by an individual primarily for personal, family, or household purposes and only to the extent that a disclosure is accurate.

     (b) A depository institution or an affiliate of a depository institution that solicits, sells, advertises, or offers insurance, and a person that sells, solicits, advertises, or offers insurance on behalf of a depository institution, shall disclose to a customer, in writing where practicable, in a clear and conspicuous manner, and before a sale of insurance, that the insurance:

(1) is not a deposit;

(2) is not insured by the Federal Deposit Insurance Corporation or another federal government agency;

(3) is not guaranteed by the depository institution, the affiliate of a depository institution, or the person that sells, solicits, advertises, or offers insurance on behalf of a depository institution; and

(4) involves investment risk including possible loss of value, if appropriate.

As added by P.L.130-2002, SEC.2.