Insider Activities

Credit Life/Accident and Health Insurance Fees

12 CFR 2 provides that it is an unsafe and unsound practice for any bank insider who is involved in the sale of credit life, accident, or health insurance to lend money to customers of the bank to purchase such insurance when the insider profits from the sale. It also prohibits insiders, and any entities controlled by such persons, from retaining commissions or other income from the sale of such insurance, to loan customers. In addition, it sets forth guidance for bonus and incentive plans based on the sale of credit life insurance.

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