HF 388

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to financial institutions; regulating the 
  1.3             solicitation and sale of insurance products; amending 
  1.4             Minnesota Statutes 1996, section 72A.20, subdivision 
  1.5             27; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 47. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [47.605] [USE OF CUSTOMER INFORMATION FOR 
  1.9   SOLICITATION OR SALE OF INSURANCE.] 
  1.10     A financial institution may not use information contained 
  1.11  in the financial records of a customer, including, but not 
  1.12  limited to, the name and address of the customer, to solicit or 
  1.13  sell an insurance product to the customer. 
  1.14     This section does not apply if the customer authorizes in 
  1.15  writing the financial institution to use this information to 
  1.16  solicit or sell insurance products to the customer. 
  1.17     For the purposes of this section, the terms "customer," 
  1.18  "financial institution," and "financial record" have the 
  1.19  meanings given in section 13A.01. 
  1.20     Sec. 2.  Minnesota Statutes 1996, section 72A.20, 
  1.21  subdivision 27, is amended to read: 
  1.22     Subd. 27.  [SOLICITATIONS AND SALES OF INSURANCE PRODUCTS 
  1.23  TO BORROWERS.] (a) A loan officer, a loan representative, or 
  1.24  other person involved in taking or processing a loan may not 
  1.25  solicit an insurance product, except for credit life, credit 
  1.26  disability, credit involuntary unemployment, mortgage life, 
  2.1   mortgage accidental death, or mortgage disability, and except 
  2.2   for life insurance when offered in lieu of credit life 
  2.3   insurance, from the completion of the initial loan application, 
  2.4   as defined in the federal Equal Credit Opportunity Act, United 
  2.5   States Code, title 15, sections 1691 to 1691f, and any 
  2.6   regulations adopted under those sections, until after the 
  2.7   closing of the loan transaction.  
  2.8      (b) This subdivision applies only to loan transactions 
  2.9   covered by the federal Truth-in-Lending Act, United States Code, 
  2.10  title 15, sections 1601 to 1666j, and any regulations adopted 
  2.11  under those sections.  
  2.12     (c) This subdivision does not apply to sales of title 
  2.13  insurance, homeowner's insurance, a package 
  2.14  homeowner's-automobile insurance product, automobile insurance, 
  2.15  or a similar insurance product, required to perfect title to, or 
  2.16  protect, property for which a security interest will be taken if 
  2.17  the product is required as a condition of the loan. 
  2.18     (d) Nothing in This subdivision also prohibits the 
  2.19  solicitation or sale of any loan officer, loan representative, 
  2.20  or other person involved in taking or processing a loan from 
  2.21  soliciting or selling an insurance product by means of mass 
  2.22  communication.