Background and Summary of Regulation H, Subpart H

Subpart H of Regulation H establishes consumer protections in sales of insurance by a state member bank. It applies to any bank or any person selling, soliciting, advertising, or offering insurance products or annuities to a consumer at an office of the bank or on behalf of the bank. In connection with insurance sales, banks must disclosure, when accurate, that—

These disclosures must be made orally and in writing before the sale of an insurance product or annuity is completed or, in the case of an extension of credit, at the time the consumer applies for the extension. The disclosures may be made electronically if the consumer affirmatively consents, so long as the consumer can retain or later obtain the disclosures by printing or storing them electronically. The bank must obtain a written acknowledgment from the consumer that disclosures were received. Receipt of disclosures made electronically can be acknowledged electronically or on paper.

To the extent practicable, a bank must keep insurance and annuity sales activities physically segregated from the areas where retail deposits are routinely accepted from the general public. Bank employees may refer a consumer who seeks to purchase an insurance product or annuity to a salesperson qualified and licensed under applicable state insurance licensing standards. Any referral fee may be no more than a one-time, nominal fee that does not depend on whether the referral results in a transaction.