§ 27-58-7 - Disclosures. - Rhode Island Statutes

SECTION 27-58-7

   § 27-58-7  Disclosures. – (a) A financial institution shall prominently disclose in writing, in clear andconcise language, to the institution's customers, including in anyadvertisement or promotional material, pursuant to regulations prescribed bythe commissioner, that insurance offered, recommended, sponsored, or sold bythe financial institution:

   (1) Is not a deposit;

   (2) Is not insured by the Federal Deposit InsuranceCorporation; and

   (3) Is not guaranteed by the financial institution or anaffiliated insured depository institution; and

   (4) Where appropriate, involves investment risk, includingpotential loss of principal.

   (b) A financial institution, for any loan for which insuranceis required shall disclose in writing to the institution's customers, in clearand concise language prior to the signing of a loan or mortgage application,that by law the purchase of insurance from that financial institution cannot berequired as a condition of loan or mortgage approval.