Section 761 Of Article 5.2. Consumer Protection In Sales Of Insurance By Or Through Depository Institutions From California Insurance Code >> Division 1. >> Part 2. >> Chapter 1. >> Article 5.2.
761
. (a) A covered person shall not engage in any practice that
would lead a consumer to believe that an extension of credit, in
violation of subsection (b) of Section 106 of the federal Bank
Holding Company Act Amendments of 1970 (12 U.S.C. Sec. 1972), is
conditional upon either of the following:
(1) The purchase of an insurance product or annuity from the
depository institution or any of its affiliates.
(2) An agreement by the consumer not to obtain, or a prohibition
on the consumer from obtaining, an insurance product or annuity from
an affiliated entity.
(b) A covered person shall not engage in any practice or use any
advertisement at any office of, or on behalf of, the depository
institution or a subsidiary of the depository institution that could
mislead any person or otherwise cause a reasonable person to reach an
erroneous belief with respect to any of the following:
(1) The fact that any insurance product or annuity sold or offered
for sale by a covered person or any subsidiary of the depository
institution is not backed by the federal government or the depository
institution, or the fact that the insurance product or annuity is
not insured by the Federal Deposit Insurance Corporation.
(2) In the case of an insurance product or annuity that involves
investment risk, the fact that there is an investment risk, including
the potential that principal may be lost and that the product may
decline in value.
(3) In the case of a depository institution or subsidiary of the
depository institution at which insurance products or annuities are
sold or offered for sale, the fact that:
(A) The approval of an extension of credit to the consumer by the
depository institution or subsidiary may not be conditioned on the
purchase of an insurance product or annuity by the consumer from the
depository institution or a subsidiary of the depository institution.
(B) The consumer is free to purchase the insurance product or
annuity from another source.