(a) A financial institution shall prominently disclose in writing, in clear and concise language, to the institution’s customers, including in any advertisement or promotional material, pursuant to regulations prescribed by the commissioner, that insurance offered, recommended, sponsored, or sold by the financial institution:
(1) Is not a deposit;
(2) Is not insured by the Federal Deposit Insurance Corporation;
(3) Is not guaranteed by the financial institution or an affiliated insured depository institution; and
(4) Where appropriate, involves investment risk, including potential loss of principal.
(b) A financial institution, for any loan for which insurance is required, shall disclose in writing to the institution’s customers, in clear and concise language prior to the signing of a loan or mortgage application, that by law the purchase of insurance from that financial institution cannot be required as a condition of loan or mortgage approval.