Massachusetts Bankers Assoc. Reports Favorable Federal Court Decision on Bank Insurance Sales
The U.S. District Court's memorandum of decision in Massachusetts Bankers Association, Inc. v. Bowler, Civ. Action No. 03-11522-RWZ. (January 10, 2005) found that certain provisions of the Mass. Consumer Protection Act (Mass.Gen.Laws ch. 167F, Sec.2A), dealing with sales of insurance by banks, were preempted by the Gramm-Leach-Bliley Act. The contested provisions included the Referral Prohibition, the Referral Fee Prohibition, the Waiting Period Prohibition and the Separation Provision.
Last year, the First Circuit Court of Appeals dismissed an attempt by the Massachusetts Commisioner of Insurance and Banks to contest a 2002 opinion to similar effect that had been issued by the Office of the Comptroller of the Currency of the United States (OCC). Bowler v. Hawke, 320 F.3d 59 (1st Cir. 2003).
Posted by dougsimpson at January 14, 2005 05:14 AM | TrackBack