Banks face sales barriers as agents lobby states

Article Abstract:

Bankers and insurers in Illinois and other states are clashing over the possibility of banks selling insurance, a possibility opposed by insurance agents fearful of unfair competition. A March, 1996 Supreme Court ruling allowing national banks to sell insurance from small-town bases regardless of prohibitive state laws has propelled many banks into the insurance market, but insurance industry laws designed to limit bank forays into the selling of insurance have thwarted further bank moves. Guidelines will ultimately be determined by a now-waffling Congress.

Insurance Agencies and Brokerages, Insurance agents, brokers, & service, Insurance Agents & Brokers, Courts, Supreme Court, Services, Illinois, Independent Insurance Agents of America

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The devil is in the details

Article Abstract:

The term "functional regulation" refers to government supervision of a company based on what it does, instead of what it is. The idea means that a state insurance department could regulate a bank's insurance activities. Bankers oppose the concept, preferring to keep federal agencies as their regulators. However, insurers regard functional regulation as a way to ensure fair competition. Insurers also want to be able to own banks the way banks can own insurers.

Commercial Banks, Commercial Banking, Business Aid & Regulation NEC, Insurance Regulation ex Auto-State, Business assistance, Bank insurance business

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Agents' worst nightmare: banks are gaining the edge to sell insurance in a big way

Article Abstract:

Insurance agents are justifiably concerned that they will lose market share to banks if proposals in Congress that will allow banks and securities firms to sell insurance are passed. Insurance agents are also concerned about how the banks that sell the insurance products will be regulated and their own viability. Banks, at this time, are prohibited by law from selling insurance products.

Banking Regulation, Banking law, Insurance agents

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