WASHINGTON - The Office of the Comptroller of the Currency is considering using for the first time its enhanced authority under the Gramm-Leach-Bliley Act of 1999 to preempt state laws that interfere with bank insurance sales.

The Comptroller's Office is expected to publish a notice as soon as Friday in the Federal Register seeking public comment on a request by the West Virginia Bankers Association to override parts of a 1997 state law prohibiting banks from selling borrowers insurance before approving their loans. The disputed law also bars loan officers from selling insurance products and requires that insurance sales occur in an office physically separate from banking offices.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.