PUBLIC LAW 106-102—NOV. 12, 1999 113 STAT. 1411 applicable to the sale of insurance products that prohibit a depository institution from engaging in any practice that would lead a customer to believe an extension of credit, in violation of section 106(b) of the Bank Holding Company Act Amendments of 1970, is conditional upon— "(1) the purchase of an insurance product from the institution or any of its affiliates; or "(2) an agreement by the consumer not to obtain, or a prohibition on the consumer from obtaining, an insurance product from an unaffiliated entity. "(c) DISCLOSURES AND ADVERTISING.—The regulations prescribed pursuant to subsection (a) shall include the following provisions relating to disclosures and advertising in connection with the initial purchase of an insurance product: "(1) DISCLOSURES.— "(A) IN GENERAL.— Requirements that the following disclosures be made orally and in writing before the completion of the initial sale and, in the case of clause (iii), at the time of application for an extension of credit: "(i) UNINSURED STATUS. —As appropriate, the product is not insured by the Federal Deposit Insurance Corporation, the United States Government, or the depository institution. "(ii) INVESTMENT RISK. —In the case of a variable annuity or other insurance product which involves an investment risk, that there is an investment risk associated with the product, including possible loss of value, "(iii) COERCION.— The approval of an extension of credit may not be conditioned on— "(I) the purchase of an insurance product from the institution in which the application for credit is pending or of any affiliate of the institution; or "(II) an agreement by the consumer not to obtain, or a prohibition on the consumer from obtaining, an insurance product from an unaffiliated entity. " (B) MAKING DISCLOSURE READILY UNDERSTANDABLE. — Regulations prescribed under subparagraph (A) shall encourage the use of disclosure that is conspicuous, simple, direct, and readily understandable, such as the following: "(i) 'NOT FDIC—INSURED', "(ii)'NOT GUARANTEED BY THE BANK'. " (iii) 'MAY GO DOWN IN VALUE', " (iv) 'NOT INSURED BY ANY GOVERNMENT AGENCT. "(C) LIMITATION. — Nothing in this paragraph requires the inclusion of the foregoing disclosures in advertisements of a general nature describing or listing the services or products offered by an institution. "(D) MEANINGFUL DISCLOSURES.—D isclosures shall not be considered to be meaningfully provided under this paragraph if the institution or its representative states that disclosures required by this subsection were available to the customer in printed material available for distribution, where such printed material is not provided and such information is not orally disclosed to the customer.
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