It is enacted by the General Assembly as follows

SECTION 1. Section 27-58-3 of the General Laws in Chapter 27-58 entitled "The Banking and Insurance Consumer Protection Act" is hereby amended to read as follows:

27-58-3. Definitions. -- For the purposes of this chapter the term "financial institution" shall include:

(1) A bank, savings bank, or trust company, as defined in title 19, its affiliates or subsidiaries, or any officer, agent, representative, or employee thereof; or any bank, savings bank, or savings and loan association chartered pursuant to federal law and located in Rhode Island, its affiliates or subsidiaries, or any officer, agent, representative, or employee thereof;

(2) A bank holding company as defined in 12 U.S.C. Section 1841, its affiliates or subsidiaries, or any officer, agent, representative, or employee thereof; or

(3) Any other individual, corporation, partnership, or association authorized to take deposits and to make loans of money under the provisions of chapters 5, 14, 14.1, and 14.2 of title 19 or any officer, agent, representative, or employee thereof.

The term "insurance" shall include all products defined or regulated as insurance by the Rhode Island Department of Business Regulation except:

(i) credit life, credit accident and health, credit involuntary unemployment insurance; {ADD forced, placed or voluntary credit personal property insurance; ADD} group credit insurance, group mortgage cancellation life insurance, or group mortgage accident and health insurance and annuities;

(ii) insurance placed by a financial institution in connection with collateral pledged as security for a loan when the debtor breaches the contractual obligation to provide that insurance; and

(iii) private mortgage insurance.

SECTION 2. This act shall take effect upon passage.