§412:5-205.5  Insurance and annuitiespowers.  (a)  With the prior written approval of the commissioner, andsubject to the limitations set forth in this section and section 412:5-205.6and to any conditions the commissioner may impose, any bank organized under thelaws of the State, at the discretion of its board of directors, may transact abusiness of insurance, including but not limited to making contracts ofinsurance and selling insurance as a producer, selling insurance through anindependent insurance producer or a producer under contract, selling annuities,and engaging in any related or incidental activities, within the State;provided that any insurance activities conducted pursuant to the authorityconferred in this subsection shall be governed by and comply with chapter 431and any insurance administrative rules adopted under chapter 431. Administration of chapter 431 and any insurance administrative rules shall bevested with the insurance commissioner.

(b)  With the prior written approval of thecommissioner, and subject to the limitations set forth in this section andsection 412:5-205.6 and to any conditions the commissioner may impose, any bankorganized under the laws of the State, at the discretion of its board ofdirectors, may transact a business of insurance, including but not limited tothe making of contracts of insurance and the sale of insurance as a producer,selling insurance through an independent insurance producer or a producer undercontract, selling annuities, and engaging in any related or incidentalactivities, in any places outside this State, including any other states of theUnited States, dependencies or insular possessions of the United States, or anyforeign countries; provided that any insurance activities conducted in thisState pursuant to the authority conferred in this subsection shall be governedby and comply with chapter 431 and any insurance administrative rules adoptedunder chapter 431; provided further that any insurance activities conductedoutside the State pursuant to the authority in this subsection shall begoverned by and comply with the laws and administrative rules of the state,dependency, insular possession, or foreign country applicable to the conduct ofinsurance activities within that jurisdiction.

(c)  The bank shall file an application forapproval with the commissioner in a form prescribed by the commissioner.  Theapplication shall be accompanied by a fee the amount of which shall beprescribed by rule.  The application shall contain:

(1)  A description of the activities to be conducted;

(2)  The experience and qualifications of the proposedmanagers;

(3)  The specific location where the activities willbe conducted; and

(4)  Any other information that the commissioner mayrequire.

If the bank proposes to engage in the business ofinsurance through a subsidiary or affiliate, then the application shall alsocontain information regarding the experience and qualifications of the proposedexecutive officers and directors of the subsidiary or affiliate and theownership, amount, and nature of the bank's investment in and advances to thesubsidiary or affiliate.  Upon being satisfied that the application iscomplete, that the conduct of the insurance business will not affect the safetyor soundness of the bank or harm the public interest, and that the bank and itssubsidiary or affiliate, if applicable, have sufficient experience,qualifications, and financial capability to engage in the activities authorizedby this section, the commissioner shall approve the application.  Thecommissioner may impose any terms and conditions which the commissionerconsiders necessary to protect the bank, the customers of the bank, and thepublic interest.

(d)  Upon receipt of the commissioner'sapproval under this section, the bank or its subsidiary or affiliate shallobtain any necessary approvals from the insurance commissioner required underchapter 431 and any insurance administrative rules adopted under chapter 431,or the applicable insurance and banking laws of any jurisdiction other thanthis State in which the bank will be conducting its insurance and annuityactivities.

(e)  The provisions of this section are inaddition to, and not a limitation of, any other provision in this chapter.  Thepowers granted by this section may be exercised notwithstanding any otherprovision of this chapter.  Furthermore, the commissioner may adopt rulesgoverning the exercise of powers granted by this section as the commissionerfinds necessary to avoid unsound banking practices, to ensure the safety andsoundness of the bank, and to protect the public interest. [L 1996, c 225, ptof §1; am L 2003, c 212, §8]