PART 343—CONSUMER PROTECTION IN SALES OF INSURANCE Authority: 12 U.S.C. 1819 (Seventh and Tenth); 12 U.S.C. 1831x. Source: 83 FR 13847, Apr. 2, 2018, unless otherwise noted. § 343.10 Purpose and scope. This part establishes consumer protections in connection with retail sales practices, solicitations, advertising, or offers of any insurance product or annuity to a consumer by: (a) Any institution; or (b) Any other person that is engaged in such activities at an office of the institution or on behalf of the institution. § 343.20 Definitions. As used in this part: Affiliate Company Consumer Control Domestic violence (1) Attempting to cause or causing or threatening another person physical harm, severe emotional distress, psychological trauma, rape, or sexual assault; (2) Engaging in a course of conduct or repeatedly committing acts toward another person, including following the person without proper authority, under circumstances that place the person in reasonable fear of bodily injury or physical harm; (3) Subjecting another person to false imprisonment; or (4) Attempting to cause or causing damage to property so as to intimidate or attempt to control the behavior of another person. Electronic media FDIC-supervised insured depository institution or institution Office State savings association Subsidiary You (i) An institution; or (ii) Any other person only when the person sells, solicits, advertises, or offers an insurance product or annuity to a consumer at an office of the institution or on behalf of an institution. (2) For purposes of this definition, activities on behalf of an institution include activities where a person, whether at an office of the institution or at another location sells, solicits, advertises, or offers an insurance product or annuity and at least one of the following applies: (i) The person represents to a consumer that the sale, solicitation, advertisement, or offer of any insurance product or annuity is by or on behalf of the institution; (ii) The institution refers a consumer to a seller of insurance products or annuities and the institution has a contractual arrangement to receive commissions or fees derived from a sale of an insurance product or annuity resulting from that referral; or (iii) Documents evidencing the sale, solicitation, advertising, or offer of an insurance product or annuity identify or refer to the institution. § 343.30 Prohibited practices. (a) Anticoercion and antitying rules. (1) The purchase of an insurance product or annuity from the institution or any of its affiliates; or (2) An agreement by the consumer not to obtain, or a prohibition on the consumer from obtaining, an insurance product or annuity from an unaffiliated entity. (b) Prohibition on misrepresentations generally. (1) The fact that an insurance product or annuity sold or offered for sale by you or any subsidiary of the institution is not backed by the Federal government or the institution, or the fact that the insurance product or annuity is not insured by the Federal Deposit Insurance Corporation; (2) In the case of an insurance product or annuity that involves investment risk, the fact that there is an investment risk, including the potential that principal may be lost and that the product may decline in value; or (3) In the case of an institution or subsidiary of the institution at which insurance products or annuities are sold or offered for sale, the fact that: (i) The approval of an extension of credit to a consumer by the institution or subsidiary may not be conditioned on the purchase of an insurance product or annuity by the consumer from the institution or a subsidiary of the institution; and (ii) The consumer is free to purchase the insurance product or annuity from another source. (c) Prohibition on domestic violence discrimination. § 343.40 What you must disclose. (a) Insurance disclosures. (1) The insurance product or annuity is not a deposit or other obligation of, or guaranteed by, the institution or an affiliate of the institution; (2) The insurance product or annuity is not insured by the Federal Deposit Insurance Corporation (FDIC) or any other agency of the United States, the institution, or (if applicable) an affiliate of the institution; and (3) In the case of an insurance product or annuity that involves an investment risk, there is investment risk associated with the product, including the possible loss of value. (b) Credit disclosure. (1) The consumer's purchase of an insurance product or annuity from the institution or any of its affiliates; or (2) The consumer's agreement not to obtain, or a prohibition on the consumer from obtaining, an insurance product or annuity from an unaffiliated entity. (c) Timing and method of disclosures In general. (2) Exception for transactions by mail. (3) Exception for transactions by telephone. (4) Electronic form of disclosures. (ii) Any disclosure required by paragraph (a) or (b) of this section that is provided by electronic media is not required to be provided orally. (5) Disclosures must be readily understandable. (i) “NOT A DEPOSIT” (ii) “NOT FDIC-INSURED” (iii) “NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY” (iv) “NOT GUARANTEED BY THE INSTITUTION” (v) “MAY GO DOWN IN VALUE” (6) Disclosures must be meaningful. (A) A plain-language heading to call attention to the disclosures; (B) A typeface and type size that are easy to read; (C) Wide margins and ample line spacing; (D) Boldface or italics for key words; and (E) Distinctive type size, style, and graphic devices, such as shading or sidebars, when the disclosures are combined with other information. (ii) You have not provided the disclosures in a meaningful form if you merely state to the consumer that the required disclosures are available in printed material, but do not provide the printed material when required and do not orally disclose the information to the consumer when required. (iii) With respect to those disclosures made through electronic media for which paper or oral disclosures are not required, the disclosures are not meaningfully provided if the consumer may bypass the visual text of the disclosures before purchasing an insurance product or annuity. (7) Consumer acknowledgment. (i) Obtain an oral acknowledgment of receipt of the disclosures and maintain sufficient documentation to show that the acknowledgment was given; and (ii) Make reasonable efforts to obtain a written acknowledgment from the consumer. (d) Advertisements and other promotional material for insurance products or annuities. § 343.50 Where insurance activities may take place. (a) General rule. (b) Referrals. § 343.60 Qualification and licensing requirements for insurance sales personnel. An institution may not permit any person to sell or offer for sale any insurance product or annuity in any part of its office or on its behalf, unless the person is at all times appropriately qualified and licensed under applicable State insurance licensing standards with regard to the specific products being sold or recommended. Appendix A to Part 343—Consumer Grievance Process Any consumer who believes that any institution or any other person selling, soliciting, advertising, or offering insurance products or annuities to the consumer at an office of the institution or on behalf of the institution has violated the requirements of this part should contact the Division of Depositor and Consumer Protection, National Center for Consumer and Depositor Assistance, Federal Deposit Insurance Corporation, 1100 Walnut Street, Box #11, Kansas City, MO 64106, or telephone 1-877-275-3342, or FDIC Electronic Customer Assistance Form at https://ask.fdic.gov/fdicinformationandsupportcenter. [87 FR 48080, Aug. 8, 2022; 87 FR 49767, Aug. 12, 2022]