Insider Activities

12 CFR 2 — Disposition of Credit Life Insurance Income

This regulation prohibits employees, officers, directors, and principal shareholders from retaining commissions and other income from the sale of credit life, accident, and health insurance to loan customers and provides that it is unsafe and unsound for such insiders to personally profit from such sales. In addition, it sets forth guidance for bonus and incentive plans based on the sale of credit life insurance.

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