Producer Groups Sue Over New York State Sales Standard Regs
November 22, 2018 by Allison Bell
Two groups for property & casualty insurance producers have gone to court in an effort to block New York state’s new “best interest” sales standard regulations for sellers of life insurance and annuity products.
The Independent Insurance Agents & Brokers of New York Inc. (Big I NY) has joined with another P&C group, the Professional Insurance Agents of New York (PIANY), to file a lawsuit objecting to the new sales standard. The list of plaintiffs also includes Gary Slavin, a licensed New York state insurance agent and broker, and Testa Brothers Ltd., a New York state insurance brokerage firm.
The plaintiffs have filed a petition against the New York State Department of Financial Services, and against Maria Vullo, the department’s superintendent, in the Supreme Court of the State of New York, in Albany County.
The petitioners in the case, Independent Insurance Agents and Brokers of New York Inc. et al. v. The New York State Department of Financial Services et al. (Case Number 907005-18), say that New York’s regulation is arbitrary and unconstitutionally vague, and that it improperly extends the agent/broker relationship, by making the producer vulnerable to lawsuits based on how a product performs after the sale.
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