Effective August 1, 2019, the New York Department of Financial Services New York Insurance Regulation 187 (“Suitability and Best Interests in Life Insurance and Annuity Transactions.”) will be in effect for annuity transactions. The regulation addresses the duties and obligations of insurers and insurance producers and provides that any transaction with respect to life insurance policies and annuity contracts delivered or issued for delivery in New York must be in the best interest of the consumer and appropriately address the insurance needs and financial obligations of the consumer at the time of the transaction.
The regulation will require an insurance producer’s or insurer’s recommendation to the consumer concerning the sale of a life insurance policy or annuity contract to be based on an evaluation of the relevant suitability information of the consumer and reflect the care, skill, prudence and diligence that a prudent person acting in a like capacity and familiar with such matters would use under the circumstances. Only the interests of the consumer may be considered in making the recommendation. The producer’s receipt of compensation or other incentives is not permitted to influence the recommendation.
Take the new Regulation 187 course that is available on the Limra website. THIS IS REQUIRED to conduct any annuity business effective 8/1/2019 and will be required for life insurance effective 2/1/2020.
Once logged in, click on the BI button (Best Interests). Please take this course ASAP.
Don’t hesitate to call our office with any questions.