(a) Insurance disclosures. In connection with the initial purchase
of an insurance product or annuity by a consumer from you, you must
disclose to the consumer, except to the extent the disclosure would
not be accurate, that—
(1) the insurance product or annuity is
not a deposit or other obligation of, or guaranteed by, the bank or
an affiliate of the bank;
(2) the insurance product or annuity is not insured by the Federal
Deposit Insurance Corporation (FDIC) or any other agency of the United
States, the bank, or (if applicable) an affiliate of the bank; and
(3) in the case of an
insurance product or annuity that involves an investment risk, there
is investment risk associated with the product, including the possible
loss of value.
(b) Credit disclosure. In the case of an application
for credit in connection with which an insurance product or annuity
is solicited, offered, or sold, you must disclose that the bank may
not condition an extension of credit on either—
(1) the consumer’s purchase of an insurance
product or annuity from the bank or any of its affiliates; or
(2) the consumer’s agreement
not to obtain, or a prohibition on the consumer from obtaining, an
insurance product or annuity from an unaffiliated entity.
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(c) Timing and method of disclosures.
(1) In general. The disclosures required by paragraph (a) of this
section must be provided orally and in writing before the completion
of the initial sale of an insurance product or annuity to a consumer.
The disclosure required by paragraph (b) of this section must be made
orally and in writing at the time the consumer applies for an extension
of credit in connection with which insurance is solicited, offered,
or sold.
(2) Exceptions for transactions by mail. If
a sale of an insurance product or annuity is conducted by mail, you
are not required to make the oral disclosures required by paragraph
(a) of this section. If you take an application for credit by mail,
you are not required to make the oral disclosure required by paragraph
(b) of this section.
(3) Exception for transactions by telephone. If a sale of an insurance product or annuity is conducted by telephone,
you may provide the written disclosures required by paragraph (a)
of this section by mail within three business days beginning on the
first business day after the sale, excluding Sundays and the legal
public holidays specified in 5 USC 6103(a). If you take an application
for such credit by telephone, you may provide the written disclosure
required by paragraph (b) of this section by mail, provided you mail
it to the consumer within three days beginning the first business
day after the application is taken, excluding Sundays and the legal
public holidays specified in 5 USC 6103(a).
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(4) Electronic
form of disclosures.
(i) Subject to the requirements of section
101(c) of the Electronic Signatures in Global and National Commerce
Act (15 USC 7001(c)), you may provide the written disclosures required
by paragraphs (a) and (b) of this section through electronic media
instead of on paper, if the consumer affirmatively consents to receiving
the disclosures electronically and if the disclosures are provided
in a format that the consumer may retain or obtain later, for example,
by printing or storing electronically (such as by downloading).
(ii) Any disclosures
required by paragraphs (a) or (b) of this section that are provided
by electronic media are not required to be provided orally.
(5) Disclosures must be readily understandable. The disclosures provided shall be conspicuous, simple, direct, readily
understandable, and designed to call attention to the nature and significance
of the information provided. For instance, you may use the following
disclosures, in visual media, such as television broadcasting, ATM
screens, billboards, signs, posters and written advertisements and
promotional materials, as appropriate and consistent with paragraphs
(a) and (b) of this section:
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(6) Disclosures must be meaningful.
(i) You must
provide the disclosures required by paragraphs (a) and (b) of this
section in a meaningful form. Examples of the types of methods that
could call attention to the nature and significance of the information
provided include—
(A) a plain-language heading to call attention
to the disclosures;
(B)
a typeface and type size that are easy to read;
(C) wide margins and ample line spacing;
(D) boldface or italics
for key words; and
(E)
distinctive type size, style, and graphic devices, such as shading
or sidebars, when the disclosures are combined with other information.
(ii)
You have not provided the disclosures in a meaningful form if you
merely state to the consumer that the required disclosures are available
in printed material, but you do not provide the printed material when
required and do not orally disclose the information to the consumer
when required.
(iii)
With respect to those disclosures made through electronic media for
which paper or oral disclosures are not required, the disclosures
are not meaningfully provided if the consumer may bypass the visual
text of the disclosures before purchasing an insurance product or
annuity.
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(7) Consumer acknowledgment. You must obtain
from the consumer, at the time a consumer receives the disclosures
required under paragraphs (a) or (b) of this section, or at the time
of the initial purchase by the consumer of an insurance product or
annuity, a written acknowledgment by the consumer that the consumer
received the disclosures. You may permit a consumer to acknowledge
receipt of the disclosures electronically or in paper form. If the
disclosures required under paragraphs (a) or (b) of this section are
provided in connection with a transaction that is conducted by telephone,
you must—
(i) obtain an oral acknowledgment of
receipt of the disclosures and maintain sufficient documentation to
show that the acknowledgment was given; and
(ii) make reasonable efforts to obtain
a written acknowledgment from the consumer.
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(d) Advertisements and other
promotional material for insurance products or annuities. The
disclosures described in paragraph (a) of this section are required
in advertisements and promotional material for insurance products
or annuities unless the advertisements and promotional materials are
of a general nature describing or listing the services or products
offered by the bank.
