This text of Indiana § 27-1-38-7 (Prohibited activities of a depository institution or an affiliate of a
depository institution) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
A depository institution or an affiliate of a
depository institution may not do the following:
(1)As a condition precedent to a loan of money, an extension of
credit, or the renewal of a loan of money or an extension of credit,
require a customer to:
(B)renew;
insurance through a particular insurer, insurance producer, broker,
or group of insurers or insurance producers.
(2)When insurance is required in connection with a loan of
money or an extension of credit, reject an insurance policy solely
because the insurance policy was issued by an insurer that is not
associated with the depository institution or an affiliate of the
depository institution.
(3)As a condition precedent to an extension of credit or an offer
of a product or service that is equivalent to an extensio
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A depository institution or an affiliate of a
depository institution may not do the following:
(1) As a condition precedent to a loan of money, an extension of
credit, or the renewal of a loan of money or an extension of credit,
require a customer to:
(A) purchase; or
(B) renew;
insurance through a particular insurer, insurance producer, broker,
or group of insurers or insurance producers.
(2) When insurance is required in connection with a loan of
money or an extension of credit, reject an insurance policy solely
because the insurance policy was issued by an insurer that is not
associated with the depository institution or an affiliate of the
depository institution.
(3) As a condition precedent to an extension of credit or an offer
of a product or service that is equivalent to an extension of credit,
require a customer to obtain insurance from a particular
depository institution, affiliate of a depository institution,
insurance producer, or insurer. This subdivision does not prohibit
a depository institution or an affiliate of a depository institution
from informing a customer or prospective customer that:
(A) insurance is required for a loan of money or an extension of
credit;
(B) approval for a loan of money or an extension of credit is
contingent upon the purchase of insurance; or
(C) insurance is available through the depository institution or
affiliate.
(4) Unreasonably reject an insurance policy that is furnished by
a customer for the protection of property that secures a loan of
money or an extension of credit to the customer. For purposes of
this subdivision, a rejection is not unreasonable if the rejection is
based on uniformly applied reasonable standards that:
(A) relate to the extent of insurance required;
(B) relate to the financial soundness and services of the insurer
issuing the insurance policy;
(C) do not discriminate against a particular kind of insurer; and
(D) do not require rejection of an insurance policy because the
insurance policy provides coverage in addition to the coverage
required for the loan of money or extension of credit.
(5) Require a person to pay a separate charge:
(A) in connection with the issuance of insurance that is required
as surety for a loan of money for real estate; or
(B) to substitute insurance issued by one (1) insurer for an
insurance policy issued by another insurer.
For purposes of this subdivision, a separate charge does not
include interest charged on loans of money or advancements for
premiums under the terms of a loan agreement or credit
agreement. This subdivision does not apply to charges that apply
when the insurance producer that provides the insurance is the
depository institution or the affiliate of a depository institution.
(6) Require of an:
(A) insurance producer; or
(B) insurer;
a condition that is not customarily required of an insurance
producer or insurer that is connected with the depository
institution or the affiliate of a depository institution.
(7) Use advertising or insurance promotional material that would
cause a reasonable person to incorrectly believe that the federal
or state government:
(A) is responsible for the insurance sales activity; or
(B) guarantees the credit;
of the depository institution or the affiliate of a depository
institution.
(8) Use advertising or insurance promotional material that would
cause a reasonable person to incorrectly believe that the federal
or state government:
(A) guarantees a return on an insurance product sold by; or
(B) is a source of payment on an insurance obligation of;
the depository institution or the affiliate of a depository
institution.
(9) Act as an insurance producer, unless the depository institution
or the affiliate of a depository institution is licensed under IC 27-1-15.6.
(10) Solicit or sell insurance, other than credit insurance or flood
insurance, unless the solicitation or sale is completed through
documents separate from a loan of money or an extension of
credit.
(11) Include the expense of an insurance premium, other than a
credit insurance premium or a flood insurance premium, in a
primary loan of money or extension of credit without the express
written consent of the customer.
(12) Solicit or sell insurance, unless the area in which insurance
sales activities of the depository institution or affiliate occur is, to
the extent practicable, physically separate from the area where
retail deposits are routinely accepted by the depository institution
or affiliate.
(13) Solicit or sell insurance, unless the depository institution or
the affiliate of a depository institution maintains separate books
and records that relate to insurance transactions, including files
related to consumer complaints.