State of Kansas
State Bank Commissioner
Special Order 1988-4
This Order issued this 17th day of October 1988, by the State Bank Commissioner, with the prior approval of the State Banking Board.
Whereas, under Kansas statutes, state banks are only specifically authorized to sell term life insurance policies in connection with the extension of consumer credit; and
Whereas, under a June 12, 1984 interpretative letter by the Office of the Comptroller of the Currency, a national bank is permitted to sell term life insurance in connection with the extension of credit as an exercise of the powers conferred by the incidental powers clause of 12 U.S.C. § 24; and
Whereas, K.S.A. 9-1715(b) provides that the State Bank Commissioner may, with prior approval of the State Banking Board, authorize state banks to engage in any activity in which such banks could engage in were they operating as national banks; and
Whereas, the Commissioner and the State Banking Board deem it reasonably required to preserve and protect the welfare of state banks and to promote competitive equality of state and national banks.
Now therefore, it is hereby ordered that any state bank may sell term life insurance policies in connection with the extension of credit, only as a source of protection for such extension of credit, and pursuant to the general provisions set forth in the Office of the Comptroller of the Currency interpretative letter dated June 12, 1984.
This Special Order is effective this 17th day of October 1988.
It is so ordered.
State Bank Commissioner
W. Newton Male
