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As of 04/08/2022

Suitability and Best Interests in Life Insurance and Annuity Transactions (NY187)

Doing Life and Annuity Business in New York

What is it?

The New York State Department of Financial Services (NY DFS) released the final version of Best-Interests Regulation 187 (NY 187). The final regulation, now called “Suitability and Best Interests in Life Insurance and Annuity Transactions,” requires producers and insurers to implement a process that ensures they’re acting in the consumer’s best interest when recommending an annuity or life insurance policy issued in New York. This was effective August 1, 2019 for Annuities and February 1, 2020 for Life Insurance.

NY Regulation 187 Requirements

Presale Training Suitability Review
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NY Reg 187 Best
Interests Training
Case Suitability

What this means for you

If you sell annuities in New York you are required to complete training prior to soliciting business in New York: 

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NY 187 Best-Interests training
Suitability review require prior to policy issue

You will also need to go through suitability review prior to policy issue. This includes:

  1. Disclosure requirements at the time of sale regarding suitability and product information, including product features, benefits and costs.
  2. Producer documentation requirements regarding the basis for any recommendation.
  3. Suitability review by your back office or the carrier must be conducted and approved for all cases prior to policy issue.

Prior to completing Best-Interests training, you should consult your back office for an approved vendor list and any additional firm-specific requirements.

As of March 25, 2022, there are no life insurance products available for new sale in the state of New York that require carrier-specific training. At this time, there is no date set for the future availability and reintroduction of life insurance products, including Lincoln MoneyGuard®, in New York. Any updates will be communicated through the Lincoln Life Leader.

Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives and/or insurance agents do not provide tax, accounting or legal advice. Please consult an independent professional as to any tax, accounting or legal statements made herein.

For financial professional use only. Not for use with the public.