Bank Powers: Issues Relating to Banks Selling Insurance
GGD-90-113
Published: Sep 25, 1990. Publicly Released: Sep 25, 1990.
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Highlights
Pursuant to a congressional request, GAO evaluated the potential effects of banks selling insurance on consumers, other insurance sellers, and bank safety and soundness.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| If more banks gain powers to sell insurance, Congress may wish to consider the need for additional regulatory measures, including increased disclosure and separation of insurance marketing from the credit process, to protect consumers from possible coercive tie-in problems. | Congress has not acted on this recommendation. No action is likely in the forseeable future. |
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Topics
Bank managementBanking regulationCompetitionInsurance companiesInsurance premiumsInternal controlsLending institutionsMicroeconomic analysisProgram abusesCredit insurance