Banks That Sell Insurance Now Follow Federal Rules.Another phase of the Gramm-Leach-Bliley financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. reform act of 1999 took effect Oct. 1, when banks that sell insurance began complying with federal rules governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. disclosure for insurance sales. The disclosure rules require two things of banks: that they properly disclose to customers that certain insurance products, such as annuities and life insurance, aren't insured by federal programs such as the Federal Deposit Insurance Corp.; and that banks prove they have advised customers that they aren't required to buy insurance from the bank as a condition of doing other kinds of business, such as opening a checking account, said Beth Climo, a director with the American Bankers American Banker is a daily newspaper covering the financial services industry. Founded in 1835 and based in New York, American Banker's 70 reporters and editors in six cities monitor developments and breaking news affecting banks. Insurance Association. The disclosure rules are governed by Section 305 of the Gramm-Leach-Bliley act The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition . |
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