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F ederal Reserve Bank
DALLAS. TEXAS

of

Dallas

75222

Circular No. 73-153
June 27, 1973

NOTICE OF POSSIBLE DELAY
ON INSURANCE AGENCY APPLICATIONS

To All Banks, Bank Holding Companies, and Others
Concerned in the Eleventh Federal Reserve District:

On June 19, 1973? the Board of Governors of the Federal
Reserve System announced its decision to notify prospective
Applicants proposing to engage, de novo or by acquisition of a
going concern, in insurance agency activities that action by the
Board on many of these applications may be delayed until the
Board has acted on those insurance agency applications on which
hearings have been ordered and are in progress.
Printed on the following pages is a copy of the Board's
Press Release and Notice relating to this matter.

Y ours v e r y t r u l y ,
P. E. C o ld w e ll,
P re sid e n t

Enclosure

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

FEDERAL RESERVE

k
$

press

release

F o r im m e d ia te r e l e a s e

J u n e 1 9 , 1973

The B o a rd o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y stem t o d a y
announced i t s d e c is i o n t o n o t i f y p r o s p e c t iv e a p p l i c a n t s p ro p o s in g t o
e n g a g e , de novo o r by a c q u i s i t i o n o f a g o i n g c o n c e r n , i n I n s u r a n c e a g e n c y
a c t i v i t i e s t h a t a c t i o n b y t h e B o a rd on many o f t h e s e a p p l i c a t i o n s may b e
d e l a y e d u n t i l t h e B o a rd h a s a c t e d on t h o s e i n s u r a n c e a g e n c y a p p l i c a t i o n s
on w h ic h h e a r i n g s h a v e b e e n o r d e r e d a nd a r e i n p r o g r e s s .
A t t a c h e d i s a copy o f t h e B o a r d 's N o t i c e r e l a t i n g t o t h i s
m atter.

A ttach m en t

FEDERAL RESERVE SYSTEM
N o t i c e o f P o s s i b l e D e la y i n t h e P r o c e s s i n g o f A p p l i c a t i o n s b y Bank
H o l d i n g Com panies t o Engage i n I n s u r a n c e Agency A c t i v i t i e s

N o t i c e i s h e r e b y g i v e n t o p r o s p e c t i v e b a n k h o l d i n g company
a p p lic a n ts t h a t i f a s u b s ta n tiv e o b je c tio n i s re c e iv e d w ith re s p e c t
t o a n a p p l i c a t i o n t o e n g a g e , de novo o r by a c q u i s i t i o n o f a g o i n g c o n c e r n ,
i n i n s u r a n c e a g e n c y a c t i v i t i e s , a c t i o n on t h e a p p l i c a t i o n b y t h e B oard
o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y stem i s l i k e l y t o b e d e l a y e d u n t i l
t h e B o a rd h a s a c t e d on t h o s e i n s u r a n c e a g e n c y a p p l i c a t i o n s on w h ic h
h e a r i n g s h a v e b e e n o r d e r e d a nd a r e i n p r o g r e s s .
The B oard h a s g r a n t e d r e q u e s t s f o r h e a r i n g s on c e r t a i n
a p p li c a ti o n s to engage in in s u ra n c e agency a c t i v i t i e s p u rs u a n t t o s e c ­
t i o n 4 ( c ) ( 8 ) o f t h e Bank H o l d i n g Company A c t (12 U .S .C . 1 8 4 3 ( c ) ( 8 ) ) and
§§ 2 2 5 . 4 ( b ) ( 1 ) and (2 ) o f t h e B o a r d f s R e g u l a t i o n Y (12 CFR 2 2 5 . 4 ( b ) ( 1 )
and ( 2 ) ) .

As new a p p l i c a t i o n s w i l l i n v o l v e g e n e r a l l y t h e same i s s u e s

a s t h o s e p r e s e n t e d i n o ne o r m ore o f t h e a p p l i c a t i o n s on w h ic h t h e B oard
has o rd ered h e a rin g s , n e ith e r a d d itio n a l h e a rin g s n o r o u tr ig h t approval
o r d e n i a l o f t h e new a p p l i c a t i o n s w o u ld a p p e a r t o b e d e s i r a b l e a t t h i s
tim e .
A c c o rd in g ly , n o t ic e i s h e re b y g iv en t o p r o s p e c tiv e a p p li c a n ts
p ro p o sin g to engage in in s u ra n c e agency a c t i v i t i e s p u rs u a n t to s e c t i o n
4 ( c ) ( 8 ) o f t h e Bank H o l d i n g Company A c t , t h a t s u c h p r o p o s a l s h e r e a f t e r
s u b m i t t e d a nd a s t o w h ic h a s u b s t a n t i v e o b j e c t i o n i s f i l e d , w i l l i n m ost
i n s t a n c e s b e h e l d i n a b e y a n c e a nd n o t p r o c e s s e d p e n d i n g r e s o l u t i o n o f
t h o s e a p p l i c a t i o n s on w h ic h t h e B o a rd h a s o r d e r e d h e a r i n g s .

-2 -

I t i s a n t i c i p a t e d t h a t a p p l i c a t i o n s t o engage i n c r e d i t l i f e
a nd d i s a b i l i t y i n s u r a n c e a nd m o r t g a g e r e d e m p t i o n i n s u r a n c e , a s w e l l a s
any a p p l i c a t i o n i n v o l v i n g a com m unity o f l e s s t h a n 5 ,0 0 0 p e r s o n s , may
not be o b jec te d to in th e fu tu re .

A bsent s u b s ta n t iv e o b j e c t i o n s , such

c a s e s w i l l b e d u ly p r o c e s s e d i n t h e norm al m anner.
B o a rd o f G o v e r n o rs o f t h e F e d e r a l R e s e r v e S y s te m , J u n e 1 9 , 1 9 7 3 .

(S ig n e d )

Tynan S m ith

Tynan S m ith
S e c r e t a r y o f t h e B oard
[SEAL]


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102