New York Best-Interest Rule for Annuity Sales Struck Down

May 3, 2021 by Melanie Waddell

The New York best-interest standard for annuity sales was struck down Thursday by the Appellate Division of the New York State Supreme Court for being “unconstitutionally vague.”

Formally known as the New York Department of Financial Services’ Amended Regulation 187, Suitability and Best Interests in Life Insurance and Annuity Transactions, the rule is “unconstitutionally vague,” the judges unanimously concluded. They noted that it uses “subjective terms,” “fails to provide sufficient concrete, practical guidance for producers,” and “provide[s] insufficient guidance with respect to how producers must conduct themselves in order to comply.”

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Originally Posted at ThinkAdvisor on April 29, 2021 by Melanie Waddell.