Topic: Insurance Sales
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One of our brokers, who is a dual employee with our organization and an investment company, just joined our management committee, which receives daily large deposit and loan change reports. Can we share those reports with the dual employee?
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We do not believe that the federal privacy regulations would prevent you from sharing the management committee reports with the dual employee. With that said, unless the joint marketing agreement exception applies, you will have to follow the privacy regulations’ requirements as to any information disclosed to the investment company through the dual employee. Under…
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Can a customer assign a life insurance policy to a bank as security for a loan in exchange for a monthly income?
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The practice that your customer proposes is uncommon and may be too risky for your institution to take on. The banking agencies discussed a similar practice in the Interagency Statement on the Purchase and Risk Management of Life Insurance, which states that loans with terms which allow a borrower to make no payments and which…
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Are bankers that are licensed to sell insurance, mutual funds, and stocks prohibited from being paid a percentage of the revenue earned through sales?
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Insurance Once an employee is licensed as an insurance producer, Illinois law does not restrict you from paying commissions, service fees, or other valuable consideration for any insurance sales made by the employee. See 215 ILCS 5/500-80(a)
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Are bank employees who sell credit life insurance subject to any continuing education requirements in Illinois?
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Generally speaking, Illinois does not require bank employees to be licensed to sell credit life insurance, so they are not required to take continuing education. The Department of Insurance issued a letter in 2009 stating that loan originators do not need to be licensed to enroll customers in group life insurance provided they are not…