Compass

Guidance on New York Rule 187 (10/16/19)

 

The New York Department of Financial Service's (NYDFS) new Best Interest regulation for life insurance and annuity transactions (Rule 187) requires producers to make significant changes in how they develop, document and disclose information about the life insurance and annuity policies they recommend to their New York clients. Given the magnitude of these changes, AALU and many other groups have been calling on NYDFS to issue guidance clarifying the requirements of Rule 187. Unfortunately, despite these requests, NYDFS did not issue any guidance until early September. However, now that AALU finally has some new information, producers need to know what NYDFS expects as the Rule's application to life insurance transactions begins February 1, 2020. Read more here.