Big I New York filed notice of our intent to appeal the Albany Supreme Court’s recent ruling upholding the amendment to Regulation 187. As you are aware, Big I NY and PIA New York jointly filed a lawsuit against the NYS DFS last November over the amendment, arguing, among other things, that the new standard improperly alters the agent/broker-customer relationship. PIA New York has elected not to join us in the appeal.
Independent agents and brokers believe strongly in protecting the customers who put their trust in us. However, we remain concerned that the amended regulation will not meaningfully advance this goal. Instead, it will restrict open, honest discussions with clients and weaken the market for life insurance and annuities products, ultimately harming consumers.
Our concerns about the impact of this regulation are already being borne out. Since the regulation went into effect on August 1st, multiple carriers with significant market share have announced the suspension of the sale of annuities and life insurance products in the state. We believe this concerning trend is likely to continue.
From the outset, we recognized that this legal challenge would likely be appealed to a higher court, regardless of the trial court’s decision. We remain confident in the merits of our claims, and resolute in our belief that this is a fight worth fighting. Big I New York has steadfastly defended our members’ interests for over one hundred twenty years, and will continue to do so.
We will keep you updated as progress is made. Don’t forget, new rules are now in effect. Effective August 1, 2019, insurance carriers, agents and brokers must 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. Big I New York has your back - in addition to appealing the decision, we have already built out a library of resources for our members to use in their compliance efforts along with other educational media.
Visit the Life Insurance & Annuities Best Practices (Reg 187) page on our website for more information on compliance.