Section 406-C:10 Prohibition on Tying of Banking and Insurance Products.
I. The financial institution shall not require or imply that the purchase of an insurance product by a customer or prospective customer is required as a condition of, or is in any way related to, the lending of money or extension of credit or the provision of services related to any such activities. A written disclosure to this effect, or such other disclosure as the department may authorize through rulemaking, shall be expressly acknowledged by the customer and shall include notice that the customer is free to select another insurance provider and that the customer's choice of another insurance provider will not affect the financial institution's credit decisions or credit terms in any way. The written disclosure shall be acknowledged at the time that a customer applying for the lending of money or an extension of credit is first informed that insurance is available through the financial institution.
II. A financial institution that solicits, sells, advertises, or offers insurance, and any person who solicits, sells, advertises, or offers insurance on behalf of a financial institution or on the premises of a financial institution shall obtain written acknowledgment of the receipt of the disclosure from the customer at the time the customer receives the disclosure. If the solicitation is conducted by telephone, the person or financial institution shall obtain an oral acknowledgment of receipt of the disclosure, maintain sufficient documentation to show that the acknowledgment was given by the customer, and make reasonable efforts to obtain a written acknowledgment from the customer. If a customer affirmatively consents to receiving the disclosures electronically and if the disclosures are provided in a format that the customer may retain or obtain later, the person or financial institution, may provide the disclosure and obtain acknowledgment of the receipt of the disclosure from the customer using electronic media.
III. The completion of a loan transaction or other transactions involving the extension of credit shall not be delayed or impeded by an officer or employee of a financial institution for the purpose of influencing a customer's selection or purchase of insurance.
Source. 1997, 223:3. 2004, 46:2, eff. May 3, 2004.