The New York State Department of Financial Services (NY DFS) has released the final version of best-interest Regulation 187 (NY 187) Suitability and Best Interests in Life Insurance and Annuity Transactions.
This regulation requires producers and insurers to implement a process that ensures they’re acting in the consumer’s best interest when recommending an annuity or life insurance policy issued in New York.
The new regulations takes effect:
- August 1, 2019 for annuity contracts
- February 1, 2020 for life insurance policies
How this affects you as a producer:
- You are required to complete the newly required Best Interest Rule training prior to solicitation of any sale on or after August 1, 2019.
- Determine the annuity is suitable and is in the client’s best interest.
- Provide all required disclosures to the client, including compensation and the basis of recommendation.
Stay tuned to CreativeOne as we will keep you up to date on regulatory action that could affect you and your practice. For more information please see the external links below.