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Insurance Sales Disclosures (Part A)

As a consumer, you are protected by the federal government when purchasing insurance products or annuities from depository institutions, such as banks. These federal regulations make it a crime for banks to coerce customers into purchasing insurance products when applying for, or extending, credit.

However, some banks may fail to inform you of their insurance sales disclosure. If you were misled about your insurance purchase by your bank, you may have cause for a class action lawsuit. A class action lawsuit allows citizens, just like you, who were wronged by a banking institution to have their voices heard and receive compensation for their trouble.

You should speak with a Massachusetts consumer rights class action lawyer if you have recently been scammed by a bank that violated the insurance sales disclosure regulations. A skilled Massachusetts consumer rights lawyer will carefully investigate your case and aggressively defend your rights.

What Is an Insurance Sales Disclosure?

On October 1, 2001, the Gramm-Leach-Bliley Act of 1999 (G-L-B) went into effect. This act allowed banks and other depository institutes to sell insurance, but also issued regulations to protect consumers from unethical sales practices. The G-L-B regulations state that banks must distinguish between insurance and deposit products, and may not engage in coercive sales practices. During an insurance sale, the bank must disclose the terms and conditions of the purchase.

What Products Are Covered by the Insurance Sales Disclosure?

The G-L-B regulations only apply to retail sales, including personal, family, or household insurance products. If insurance is sold to an individual for a business-related purpose, the regulations do not apply. Commercial sales do not require an insurance sales disclosure.

The insurance sales disclosure regulation pertains to any form of insurance sales, including direct solicitations or advertisements. Basically, any time a banking institution invites a customer to buy personal insurance, they are subject to the regulation. If the bank provides free insurance with certain programs, it would not constitute an insurance sale and the regulation will not apply.

If you have questions regarding your insurance purchase and whether it was subject to the insurance sales disclosure regulation, you should speak with a Massachusetts consumer rights attorney.

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