(a) Anticoercion and antitying rules. You may not engage in any
practice that would lead a consumer to believe that an extension of
credit, in violation of section 106(b) of the Bank Holding Company
Act Amendments of 1970 (12 USC 1972), is conditional upon either—
(1) the purchase of an insurance
product or annuity from the bank or any of its affiliates; or
(2) an agreement by the consumer
not to obtain, or a prohibition on the consumer from obtaining, an
insurance product or annuity from an unaffiliated entity.
6-2805
(b) Prohibition on misrepresentations
generally. You may not engage in any practice or use any advertisement
at any office of, or on behalf of, the bank or a subsidiary of the
bank that could mislead any person or otherwise cause a reasonable
person to reach an erroneous belief with respect to—
(1) the fact that an insurance product
or annuity sold or offered for sale by you or any subsidiary of the
bank is not backed by the federal government or the bank 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; or
(3) in the case of a bank or subsidiary
of the bank at which insurance products or annuities are sold or offered
for sale, the fact that—
(i) the approval of an extension of
credit to a consumer by the bank or subsidiary may not be conditioned
on the purchase of an insurance product or annuity by the consumer
from the bank or a subsidiary of the bank; and
(ii) the consumer is free to purchase
the insurance product or annuity from another source.
6-2806
(c) Prohibition
on domestic violence discrimination. You may not sell or offer
for sale, as principal, agent, or broker, any life or health insurance
product if the status of the applicant or insured as a victim of domestic
violence or as a provider of services to victims of domestic violence
is considered as a criterion in any decision with regard to insurance
underwriting, pricing, renewal, or scope of coverage of such product,
or with regard to the payment of insurance claims on such product,
except as required or expressly permitted under state law.
