BULLETIN NO. 01-08

TO: ALL NEW JERSEY LICENSED LIFE INSURERS AND HEALTH INSURERS

FROM: KAREN L. SUTER, COMMISSIONER

RE: DISCLOSURES MANDATED BY FEDERAL REGULATIONS ADOPTED PURSUANT TO SECTION 305 OF THE GRAMM-LEACH-BLILEY ACT


Section 305 of the Gramm-Leach-Bliley Act (P.L. 106-102) (the "Act") amends the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) by requiring depository institutions to make specific customer protection disclosures when they sell insurance products or annuities. Certain of these disclosures must be made before the completion of the sale of the insurance product or annuity. Other disclosures must be made at the time a consumer makes application for an extension of credit in connection with which an insurance product or annuity is solicited, offered or sold.

The Office of the Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation have adopted customer protection regulations implementing Section 305 of the Act. The regulations do not require that the disclosures mandated by the Act be made on application forms, but the Department anticipates that some depository institutions may wish to do so.

Because certain life and health insurance application forms are subject to prior approval by the Department, this bulletin is to inform life and health insurers of the Department's process established for the expeditious review and approval of application forms submitted pursuant to the Federal regulations.

Form filings must be mailed to the Department at the following address:

Life/Health Division
New Jersey Department of Banking and Insurance
P.O. Box 470
Trenton, NJ 08625-0470

The Department will expedite the approval of form filings identified as being made exclusively to comply with the Federal regulations implementing Section 305 of the Act. Questions regarding this bulletin should be directed to Lynda Klebold, Chief, Life Bureau at (609) 292-5427 x50320.

6/6/01

/s/ Karen L. Suter, Commissioner