A financial institution may not tie credit, services, or account activity to buying insurance from it.
§1599. Insurance as a condition to service A. A financial institution shall not in any manner extend credit, lease, or sell property of any kind, or furnish any service, or fix or vary the consideration for any of the foregoing, on the condition or requirement that the customer shall obtain insurance from the financial institution. In accordance with the provisions of this Subpart, the financial institution shall not represent that the purchase of an insurance product from a financial institution by a customer or prospective customer of the institution is required as a condition of, or is any way related to, the lending of money or extension of credit, the establishment or maintenance of a trust account, the establishment or maintenance of a checking, savings, or deposit account, or the provision of services related to any such activities. B. No financial institution shall offer an insurance product in combination with banking products unless the insurance products and banking products are available separately from the institution. C. The following activities conducted in accordance with the provisions of this Subpart shall not violate the provisions of this Section: (1) A financial institution may cross-sell or cross-market its products and services by informing customers that insurance is available from the financial institution. (2) A financial institution that requires a customer to obtain insurance coverage in connection with a loan or other extension of credit may provide the insurance. Acts 1997, No. 1475, §2, eff. July 15, 1997; Redesignated from R.S. 22:3058 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2011, No. 94, §1, eff. Jan. 1, 2012.