SENATE BILL NO. 415
AS AMENDED BY SENATE AMENDMENT NOS. 1 AND 3
AN ACT TO AMEND CHAPTER 7 OF TITLE 5 OF THE DELAWARE CODE PERTAINING TO THE POWERS OF BANKS AND TRUST COMPANIES TO ENGAGE IN THE BUSINESS OF INSURANCE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two—thirds of all members elected to each House thereof concurring therein):
Section 1. Amend Section 767 of Title 5 of the Delaware Code by adding a new subsection thereto to read as follows:
"(e) Notwithstanding the grant of powers contained in §761(a)(14) of this title, §761(a)(14) of this title does not permit, and shall not be construed to permit, any bank or trust company, all or substantially all of the voting shares of which have been acquired by an out—of—state bank holding company or any subsidiary thereof, from being operated in a manner and at a location inconsistent with the requirements of §803(4) of this title; provided, however, that any bank or trust company which engages in any activity first authorized by §761(a)(14) of this title shall, through any division or subsidiary, be permitted to sell or offer for sale to members of the general public in this State any insurance product, or a product which is otherwise functionally equivalent to such a product, which had, prior to the effective date of the Bank and Trust Company Insurance Powers Act of 1989, been previously sold to the general public in this State by or through such bank or trust company or its bank holding company, or by the subsidiaries or affiliates of such bank or trust company or its bank holding company."
Section 2. Amend Section 767 of Title 5 of the Delaware Code by adding a new subsection thereto to read as follows:
"(f) The offer to sell or the sale of any insurance product authorized to be sold under this Section shall be made only by those individuals who are validly licensed as insurance agents or brokers in the State or other jurisdiction in which the sale of insurance is offered or consummated. The offer to sell insurance products shall include, but not be limited to, solicitation by mail, telephone, electronic or print media, and by personal contact. Violation of this subsection shall subject the violator and the employer of the violator to the penalties prescribed in Title 18, Delaware Code, for solicitation or sale of insurance and the receipt or payment of commissions to unauthorized persons, if the violation occurred in this State. The Banking Commissioner and the Insurance Commissioner shall be charged to advise regulators in other states or jurisdictions when it is discovered that such violations have occurred in such other State or jurisdiction."
Section 3. This Act shall take effect upon the enactment of the Bank and Trust Company Insurance Powers Act of 1989.
Approved May 30, 1990.