§ 2218. Lines of insurance
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/usc/title-12/section-2218A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Regulatory authorization
(1)The regulations of the Farm Credit Administration governing financially related services that the banks and associations of the Farm Credit System may provide under subchapters I and II of this chapter may authorize the sale to any member of or borrower from any such bank or association, on an optional basis, of credit or term life and credit disability insurance appropriate to protect the loan commitment in the event of death or disability of the debtors and other insurance necessary to protect the member’s farm or aquatic unit, but limited to, hail and multiple-peril crop insurance, title insurance, and insurance to protect the facilities and equipment of aquatic borrowers. A member or borrower shall have the option, without coercion from the bank or association of such member or borrower, to accept or reject such insurance.
(2)In making insurance available through private insurers, the banks shall approve the programs of more than two insurers for each type of insurance offered in the district, if more than two insurers for each type of insurance have proposed programs to a bank that will, in all likelihood, have long-term viability and meet the requirements of subsection (b)(2)(D). The banks may provide comparative information relating to costs and quality of approved programs and the financial conditions of approved companies. Associations shall offer at least two insurers for each program from among those approved by the Farm Credit Banks, if at least two insurers have been approved in accordance with this paragraph.
(b)Contents of regulations Such regulations shall provide that—
(1)in any case in which insurance is required as a condition for a loan or other financial assistance from a bank or association, notice be given that it is not necessary to purchase the insurance from the bank or association and that the borrower has the option of obtaining the insurance elsewhere;
(2)such insurance services may be offered only if—
(A)the bank or association has the capacity to render insurance service under this chapter in an effective and efficient manner;
(B)there exists the probability that any insurance program under this chapter will generate sufficient revenue to cover all costs;
(C)rendering insurance service will not have an adverse effect on the bank’s or association’s credit or other operations;
(D)the insurance program has been approved by the bank or association from among specific programs made available to it by insurers—
(i)meeting reasonable financial and quality of service standards; and
(ii)licensed under State law to do business in the State; and
(E)in making insurance available through approved insurers, the board of directors of the association or bank selects and offers at least two approved insurers for each type of insurance made available to the members and borrowers, if at least two insurers have been approved in accordance with subsection (a)(2); and
(3)no bank or association shall directly or indirectly discriminate in any manner against any agent, broker, or insurer that is not affiliated with such bank or association, or against any party who purchases insurance through any such nonaffiliated insurance agent, broker, or insurer.
(c)Continuation of existing coverage Notwithstanding any provision of this section to the contrary, any bank or association that on December 24, 1980, is offering insurance coverages not authorized by this section may continue to sell such coverages for a period of not more than one year from such date and may continue to service such coverages until their expiration.
(Pub. L. 92–181, title IV, § 4.29, as added Pub. L. 96–592, title IV, § 404, Dec. 24, 1980, 94 Stat. 3448; amended Pub. L. 100–233, title IV, § 422(a), Jan. 6, 1988, 101 Stat. 1655; Pub. L. 100–399, title IV, § 411, Aug. 17, 1988, 102 Stat. 1003; Pub. L. 101–624, title XVIII, § 1834, Nov. 28, 1990, 104 Stat. 3833.)
Connections8 cite this · traces to 2
Cited by 8 sections · top 6
U.S. Code
statutes-at-large
- Public Law 96–592To amend the Farm Credit Act of 1971 to permit Farm Credit System institutions to improve their services to borrowers, and for other purposes
- Public Law 100–399To make technical corrections to the agricultural credit laws
- Public Law 100–233To provide credit assistance to farmers, to strengthen the Farm Credit System, to facilitate the establishment of secondary markets for agricultural loans, and for other purposes
- Public Law 101–624To extend and revise agricultural price support and related programs, to provide for agricultural export, resource conservation, farm credit, and agricultural research and related programs, to ensure consumers an abundance of food and fiber at reasonable prices, and for other purposes
statute-compilations
Traces to 2 documents
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- Pub. L. 92–181, title IV, § 4
- Pub. L. 96–592, title IV, § 404
- 94 Stat. 3448
- Pub. L. 100–233, title IV, § 422(a)
- 101 Stat. 1655
- Pub. L. 100–399, title IV, § 411
- 102 Stat. 1003
- Pub. L. 101–624, title XVIII, § 1834
- 104 Stat. 3833
- Pub. L. 101–624, § 1834(1)
- Pub. L. 101–624, § 1834(2)
- Pub. L. 100–233, § 422(a)(1)
- Pub. L. 100–399, § 411(a)
- Pub. L. 100–399, § 411(b)
- Pub. L. 100–233, § 422(a)(2)
- Pub. L. 100–399
- section 401 of Pub. L. 100–233
- section 1001(b) of Pub. L. 100–399
- Pub. L. 100–233, title IV, § 422(b)
- 101 Stat. 1656
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cites case law
§ 2218
Lines of insurance
Stat.×6
Stat. Comp.×1
U.S.C.×1
Pub. L.Pub. L. 92–181, title IV, § 4
Pub. L.Pub. L. 96–592, title IV, § 404
Stat.94 Stat. 3448
Pub. L.Pub. L. 100–233, title IV, § 422(a)
Stat.101 Stat. 1655
Cites 22 · showing 7Cited by 8 across 3 sources