|As you may be aware, Big I NY and PIANY filed a lawsuit against the New York State Department of Financial Services (DFS) in November of 2018 over an amendment to Regulation 187. We argued that the amendment sets a troubling new standard of “best interest” for life insurance sales, and improperly alters the agent/broker-customer relationship. We are disappointed to report that the court has ruled to uphold the amended regulation.|
We remain concerned that this will have negative impacts on New York’s insurance-buying public, and that this amendment will restrict open, honest discussions with our clients—thus weakening the life insurance market and ultimately harming consumers.
Big I New York and PIANY – who collectively represent thousands of insurance agents and brokers across New York State – are carefully considering all available options.
New rules creating a "best interest" standard for annuity sales became effective August 1, 2019. Insurance carriers, agents and brokers must now comply with the new rules for all transactions related to annuity contracts. The same rules will apply to life insurance sales starting on February 1, 2020.
Visit Big I NY's Life Insurance & Annuities Best Practices (Reg 187) resource page for more information on compliance (you must be logged in to view this page).
Contact Scott Hobson if you have any questions.