Court gives Citicorp OK to sell insurance in Delaware.

National Underwriter Life & Health-Financial Services Edition, June, 1991 by Brostoff, Steven

Court Gives Citicorp OK To Sell Insurance In Delaware

State-chartered subsidiaries of bank holding companies in Delaware will be able to both sell and underwrite all lines of insurance under a decision last week by a United States Court of Appeals.

The Second Circuit Court in New York vacated an August 1990 ruling by the Federal Reserve Board which had effectively blocked bank holding companies from taking advantage of a Delaware law expanding the insurance powers of state-chartered subsidiaries.

The court ruled that the Fed did not have the authority to forbid state-chartered subsidiaries from engaging in insurance activities pursuant to the Delaware law.

Under the Delaware law, state-chartered banks were allowed to engage in both...

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