Short Takes: Bankers Say Mass. Insurance Bill Unclear

The Massachusetts Bankers Association plans to ask state legislators to clarify the finer points of a bill that would allow banks to sell traditional insurance.

Kevin F. Kiley, executive vice president, regulatory affairs, said the bill, introduced last week in Massachusetts' House and Senate, was unclear about where insurance could be sold in a branch.

Lawmakers have not scheduled a date for a hearing but plan to do so by early next year, Mr. Kiley said.

Drawn up by various Massachusetts lawmakers, the bill would grant broad powers to sell, but not underwrite, all types of insurance, including property-and-casualty and life.

"It's a positive step," said Mr. Kiley.

The legislature was spurred on in September when Bank of Boston Corp. filed a suit in a federal court in Boston demanding approval for a license.

Current Massachusetts law does not allow banks to sell traditional lines of insurance. But Bank of Boston argues that the Supreme Court's recent Barnett decision overrides the state law.

The March ruling upheld the right of national banks to operate insurance agencies in small towns.

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