Please review and submit the comment letter below to the NY
Department of Financial Services (DFS) regarding their proposal to adopt a best
interest standard for sellers of life insurance products and annuities.
Specifically, the proposal:
- Establishes a new
standard for life insurance professionals by expanding the scope and
requirements of the current NY suitability standard for annuities. Applies
this new standard to life insurance producers and life insurance
policies—including in-force policies.
- Exempts qualified plans
(including employer sponsored IRAs), mutual funds, or other securities
unless related to life insurance or annuity products.
- Is similar to the DOL’s
“best interests” standard and ERISA “prudent person” rule.
- Defines a best interest
recommendation as one that is made “without regard to the financial or
other interests of the producer, insurer, or any other party.”