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As of 09/30/2020

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
Product Training
Case Suitability

What this means for you

If you sell New York annuities or life insurance, you will now be required to complete two types of training prior to soliciting business in New York: 

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NY 187 Best-Interests training

This is a one-time training requirement for both annuities and life insurance. There are combined Life Insurance and Annuity Transaction courses, so you only need to take one. Or you can take one for annuities and one for life insurance. You'll need to take this training before the application is signed for any carrier's New York annuity or life product. Access Training 

Carrier-specific product training (life insurance only)

In order to sell life insurance with Lincoln (fixed individual, variable individual and MoneyGuard products), you will now be required to take product training. Access 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.


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Additional Coronavirus legislation and relief is likely to be forthcoming from the 117th Congress later in 2021, so more to come.

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.