Licensing Requirements: Bank and Credit Union Insurance Sales

General Information

The requirements for Bank Insurance Producers and Credit Union Insurance Producers are governed under the provisions of Chapter 129 of the Acts of 1998, Chapter 454 of the Acts of 2002, 209 Code of Massachusetts Regulations 49.00 and 211 Code of Massachusetts Regulations 142.00 , Federally-chartered banks and credit unions, state-chartered banks and credit unions and other lenders may sell insurance in Massachusetts

1. Banks and Authorized Lenders may engage in the sale of insurance directly through its duly licensed employees, through a licensed subsidiary or affiliate agency, and through an arrangement with a licensed third party producer.

   Credit Unions may engage in the sale of insurance directly through its duly licensed employees, through an independently licensed affiliate established for the purpose of engaging in insurance sales, and through an arrangement with a licensed third party producer. The credit union insurance sales affiliate must be a credit union service organization established pursuant to state or federal law.

   All subsidiary or affiliate entities must be organized in accordance with M.G.L. c. 175 § 174. To obtain a Bank or Credit Union Insurance Producer license, applicants should meet the statutory and regulatory requirements and follow the application procedures below:
    

   Application Procedures

   A. Massachusetts Chartered Banks, Massachusetts Chartered Credit Unions, Massachusetts Branches of Out-of-State Banks, eligible Lenders:
    

   1. Submit one copy of the Applicant's Plan of Operation for insurance sales activities in Massachusetts, to the Massachusetts Division of Banks for approval, at the following address: Division of Banks, 10 ^th Floor, 1000 Washington St, Boston, MA 02118.
   
   2. Submit a completed Bank or Credit Union Application for an Insurance Producer License, accompanied by a copy of the approved Plan of Operation from the Division of Banks, to the Massachusetts Division of Insurance, at the following address: Division of Insurance, Attention: Mr. Robert Hunter, 1000 Washington St, Suite 810, Boston, MA 02118.

   Requests by a state-chartered institution for a physical separation waiver under 209 CMR 49.06(4) should be submitted to the Division of Banks for approval; see address above. Upon approval from the Division of Banks, a copy of the waiver must be forwarded to the Division of Insurance; see address above.

   B. Federally-chartered Banks, Federally-chartered Credit Unions, Banks Located Wholly Outside Massachusetts:
   
   1. Submit a completed Bank or Credit Union Application for an Insurance Producer License, accompanied by the Plan of Operation for insurance sales activities in Massachusetts to the Division of Insurance at the address above, for review and approval. In addition, Federally-chartered institutions must also submit a statement that the applicant has complied with all federal conditions governing the sale of insurance.

   Requests by a federally-chartered institution for a physical separation waiver under 211 CMR 142.05 should be submitted directly to the Division of Insurance with the application.
    

   C. Subsidiaries or Affiliates

   1. Subsidiaries or affiliates, engaged in insurance sales, must be organized in accordance with M.G.L. c. 175 § 174.
   2. An affiliate of a credit union must be established as a credit union service organization pursuant to state or federal law and established for the purpose of engaging in insurance sales.
   3. Subsidiaries or affiliates engaged in insurance sales on behalf of applicant institutions must be independently licensed as Insurance Producers and identified on the Bank or Credit Union Application for a Producer license. .
   4. Third party entities engaged in insurance sales on behalf of a bank or credit union through a third party agreement must be licensed as Insurance Producers and identified on the Bank or Credit Union Application for a Producer License.
   5. Employees of a bank or credit union engaged in insurance sales on behalf of the bank or credit union must be individually licensed as Insurance Producers and identified on the Bank or Credit Union Application for a Producer License.
       

      D. Application Fees

      A check made payable to the Commonwealth of Massachusetts in the amount of $75.00, must be enclosed with each application. Please note the fee is non-refundable.

      E. Term of Bank or Credit Union Producer License

      Bank or Credit Union Producer Licenses are effective for one year from the date of initial licensure. Bank or Credit Union Producers are responsible for renewing annually on or before the renewal date printed on the Producer License.

   
   
   
    

Please forward the completed application, supporting documents and appropriate fees to: 

Division of Insurance
1000 Washington St, Suite 810
Boston, Massachusetts 02118
Attention: Robert Hunter
Questions may be directed to [e-mail]. Please provide a self-addressed legal size envelope for the return of the license. Incomplete applications will not be processed.