Ill. bank groups mobilize to win insurance powers

The Illinois Bankers Assn and the Community Bankers Assn of Illinois are supporting a bill that would remove legal barriers against state-chartered banks selling insurance. The banking groups claim that their inability to sell insurance puts them at a competitive disadvantage, since thrifts and banks in other states can already sell insurance products. They claim consumers will benefit from better service and availability, but insurance agents and carriers claim the banks would have an unfair advantage selling to loan customers.
Two Illinois banking associations have launched an all-out effort to win insurance sales powers for their members. The Chicago-based Illinois Bankers Association and the Community Bankers Association of Illinois are [...]