Insurance Sales Activities by Banks

  • 1985 0911 - GOV (House) - The South Dakota Loophole, Jim Leach (R-IA)
  • 1994 0203 - Congressional Record - Volume 140, Number 8  - [link] - congress.gov/bound-congressional-record/1994/02/03/senate-section
  • 1999 06 - OCC - Office of the Comptroller of the Currency - 157p
    • A. Insurance Sales Activities/Preemption  
    • Under section 121, well-capitalized national banks may have a wholly owned insurance agency subsidiary that may operate from any location in a state. But H.R. 10 does not repeal the “place of 5,000” restriction that limits banks’ direct insurance sales under current law. Section 104 establishes a complex scheme for determining the scope of permissible state regulation of insurance sales activities by banks and their subsidiaries and affiliates. The provision overturns the U.S. Supreme Court’s decision in Barnett Bank v. Nelson3 and permits state regulators to impose rules that discriminate against banks and impose significant, anticompetitive, and in many cases virtually incomprehensible sets of restrictions on banks’
      ability to sell insurance. Under these new preemption standards, banks will have less protection from state discriminatory insurance sales restrictions than they do today.

      • 3 Barnett Bank v. Nelson, 116 S. Ct. 1103 (1996)
  • 1994 - LR - Insurance Sales Power of National Banks Under 12 U.S.C. § 92, by Lawrence Dunn - 33p
  • Year-? - LR - Independent Insurance Agents of America, Inc. v. Ludwig and Variable Annuity Life Insurance Co. v. Clarke: The Banking-Insurance War in Search of a Judicial Truce, by Catherine Edwards Heigel - 24p
    • p1 - "The war drums are beating in the insurance industry camp once again, and the banking industry is circling its wagons."1
    • 1 - Philip C. Meyer, Banks Gird for New Fight in Congress over Insurance Powers, BANKNG POL'YREP., Sept. 6, 1993, at 5, 5. - <WishList>
    • 2 The beginning of this modem day debate was sparked by the decision of the Fifth Circuit Court of Appeals in Saxon v. Georgia Ass'n of Independent Insurance Agents, Inc., 399 F.2d 1010 (5th Cir. 1968).