Skip Ribbon Commands
Skip to main content
Oct 21
Court of Appeals Rules Regulation 187 “Best Interest" Standard not Unconstitutional

​On Thursday, October 20th, the New York State Court of Appeals ruled that the first amendment to Insurance Regulation 187, or the “best interest" standard for the sale of life and annuities, is not unconstitutional. Therefore, the regulation remains in force. As the Court of Appeals is the highest court in the state, no further appeal is possible.

In response to the ruling, Big I NY President and CEO Lisa Lounsbury issued the following statement:

While we respect the court's position, we strongly disagree with the decision. We maintain the Appellate Division Third Department correctly ruled that the amended regulation is unconstitutionally vague, and we are disappointed the Court of Appeals overturned that decision.  

The court's ruling leaves in place a regulation which lacks the clarity necessary for independent insurance agents and brokers to understand what is expected of them as they operate on a daily basis.

New York independent insurance agents and brokers will continue to serve their customers and provide them with coverage options to help protect what matters most. The commitment that New York independent insurance agents and brokers have to insurance consumers will not waver.


Comments

There are no comments for this post.

 ‭(Hidden)‬ Blog Tools