From Times Staff and Wire Reports
Insurance Agents Win Partial Victory: Insurance agents, who have led a three-year fight trying to keep bankers out of their business, won a partial victory when California’s 3rd Circuit Court of Appeals in Sacramento ruled that bank subsidiaries cannot sell insurance in California. However, state chartered banks can sell insurance directly. The issue came up after Proposition 103 repealed one section of California’s insurance code that prohibitted banks from selling insurance products. However, two similar banking laws remain on the books and they are the basis of the insurers’ arguments that bankers have to back out of the business. The Independent Insurance Agents & Brokers of California said insurers may appeal the decision.