PIANJ Gives Support to Bank Parity Proposal

The Professional Insurance Agents of New Jersey issued a statement supporting the New Jersey Department of Banking and Insurance for its proposed regulation implementing the Parity Act, which amended the powers of state banks, savings banks and their subsidiaries to be consistent with new powers granted to federal banks by the Gramm-Leach-Bliley Act.

The regulations are designed to implement the mandates of the act, passed two years ago. They provide that any parity provided by law to state chartered banks and savings banks shall not permit a violation of New Jersey law and rules regulating insurance companies and insurance producers.

Steven Reichman, CIC, PIANJ president, stated that his organization, “Commends the department for ensuring that the grant of parity powers will not be used as a means for banks to avoid complying with the consumer protections found in insurance law. This recognition is extremely important since banks have become increasingly more active in insurance activities in recent years.”