Broker-dealers selling annuities: preparing for the best interest standard under New York’s amended Insurance Regulation 187
February 19, 2019 by Eversheds Sutherland (US) LLP
Background. In 2018, the New York State Department of Financial Services (NYDFS) issued a final version of its First Amendment to Insurance Regulation 187, retitled “Suitability and Best Interests in Life Insurance and Annuity Transactions” (Amended Regulation 187).1 Amended Regulation 187 will impose a best interest standard on recommendations of purchase, replacement and certain other post-issuance transactions involving life insurance2 and annuity products. According to the NYDFS press release announcing the issuance of the final version of Amended Regulation 187, a goal of the amended regulation is to “fill in regulatory gaps” perceived by NYDFS resulting from the elimination of the federal Department of Labor’s Fiduciary Rule.3
Originally Posted at Lexology on February 14, 2019 by Eversheds Sutherland (US) LLP.
Categories: Industry Articles
