It is enacted by the General Assembly as follows

SECTION 1. Section 27-3-47 of the General Laws in Chapter 27-3 entitled "Agents, Brokers and Solicitors" is hereby amended to read as follows:

27-3-47. Acts prohibited. -- (a) Except for the sale of credit life insurance, credit accident and health insurance, group credit insurance, group mortgage cancellation life insurance, or group mortgage accident and health insurance issued by an insurance company not owned in whole or in part by a financial institution hereinafter enumerated and the provision of administrative or data processing services to insurance companies or insurance producers, a financial institution's premises within Rhode Island shall not be used to sell and/or underwrite insurance. Premises shall mean space where retail banking operations are conducted within a financial institution.

(b) For the purposes of this section, a financial institution shall be defined as:

(1) A bank, savings bank, or trust company, as defined in this title, 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, {ADD except any such bank holding company that is exempt as provided in 12 U.S.C. section 1843(d), ADD} 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.

(c) For the purposes of this section, partial ownership of an insurance company by a financial institution shall mean ownership of more than five percent (5%) of the voting shares of that insurance company. The term ownership as used in this section shall not extend to shares held by the financial institution where the institution is acting in a fiduciary relationship.

(d) This section shall not apply to the sale of insurance by a financial institution as defined in this section which has been issued an insurance producer's license under this title.

SECTION 2. 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, {ADD except any such bank holding company that is exempt as provided in 12 U.S.C. section 1843(d), ADD} 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; 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 3. This act shall take effect upon passage.