(a)  A financial institution shall prominently disclose in writing, in clear and concise language, to the institution’s customers, including in any advertisement or promotional material, pursuant to regulations prescribed by the commissioner, that insurance offered, recommended, sponsored, or sold by the financial institution:

(1)  Is not a deposit;

(2)  Is not insured by the Federal Deposit Insurance Corporation;

(3)  Is not guaranteed by the financial institution or an affiliated insured depository institution; and

(4)  Where appropriate, involves investment risk, including potential loss of principal.

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Terms Used In Rhode Island General Laws 27-58-7

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.

(b)  A financial institution, for any loan for which insurance is required, shall disclose in writing to the institution’s customers, in clear and concise language prior to the signing of a loan or mortgage application, that by law the purchase of insurance from that financial institution cannot be required as a condition of loan or mortgage approval.

History of Section.
P.L. 1996, ch. 325, § 1.