State of Kansas
State Bank Commissioner
Special Order 1990-2
This Order is issued on this 19th day of November, 1990, by the State Bank Commissioner, with the prior approval of the State Banking Board.
Whereas, the State Bank Commissioner with the prior approval of the State Banking Board, issued Special Order 1977-1 which authorized state banks to act as insurance agents to the same extent national banks are permitted under 12 U.S.C. § 92.
Whereas, 12 U.S.C § 92 permits the Office of the Comptroller of the Currency to promulgate rules and regulations to further interpret 12 U.S.C. § 92.
Whereas, the Comptroller has interpreted 12 U.S.C. § 92 to permit national banks to act as insurance agents at branch bank offices located in any place where the population does not exceed five thousand (5,000) inhabitants.
Whereas, the Comptroller has further interpreted 12 U.S.C. § 92 to permit national banks located with a main office or branch bank office, in any place, where the population does not exceed five thousand (5,000) inhabitants, to act as insurance agents and sell insurance to existing and potential customers regardless of the geographic location of the customers.
Whereas, K.S.A. 9-1715(b) authorizes the State Bank Commissioner, with the prior approval of the State Banking Board, to permit state banks to engage in any activity permissible for national banks.
Whereas, the Commissioner and the State Banking Board deem the issuance of this special order is reasonably required to preserve and protect the welfare of state banks and to promote competitive equality of state and national banks, and needed to clarify Special Order 1977-1.
Wherefore, it is ordered that state banks may act as insurance agents to the same extent national banks are permitted under 12 U.S.C. § 92 as applied and interpreted by the Office of the Comptroller of Currency. This includes, but is not limited to permitting state banks with main office or branch bank office located in any place where the population does not exceed five thousand (5,000) inhabitants, to act as insurance agents and sell insurance to existing and potential customers regardless of the geographic location of the customers.
It is further ordered, that Special Order 1977-1 is revoked.
It is so ordered.
State Bank Commissioner
W. Newton Male
