Bank Insurance Agency Management
Community Banks and Insurance
Compliance and Risk Management
Wealth Management
Insurance Product Marketing

Thursday, June 26, 2014

Delaware Regulation Prohibits Insurance Compensation on Consumer Loans

Recent regulations in Deleware regarding the payment of premiums and other incentments for the placement of insurance in connection with consumer credit transtations will change insurance operating rules affecting loan insurance. The rule, adopted and implemented in April, states that
"Commissions or incentives of any kind for the placement of any type of insurance may not be paid to any licensee, any employee of a licensee, or any office of a licensee. Contracts prepared in advance of a borrower’s signature shall not automatically include credit life, health, disability or other insurance."

Read McIntyre & Lemon, PLLC memorandum.

Read the full regulation.

If you have any questions, please contact Kevin McKechnie.