Despite the flurry of lawsuits that have followed the release of the final Department of Labor (DOL) fiduciary rule, some insurance carriers are coming to terms with the new regime and have announced plans to comply with the seemingly burdensome rules. Particularly, several insurance carriers with affiliated broker-dealer networks have indicated that they will attempt to comply with the best interest contract exemption, rather than exiting certain lines of business.

This would allow various preexisting compensation arrangements to continue to be viable, if the exemption’s requirements are strictly followed—and could mark the next trend in the broker-dealer industry despite potential alternatives to embracing the best interest contract exemption.

Because the rule’s applicability date is fast approaching, however, now is the time to begin preparing to either comply or embrace an alternative solution.

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Originally published on Tax Facts Online, the premier resource providing practical, actionable and affordable coverage of the taxation of insurance, employee benefits, small business and individuals.    

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