- Broker-Dealers Selling Annuities – Preparing for the Best Interest Standard under New York’s Amended Insurance Regulation 187
- February 14, 2019 | Authors: Ben Marzouk; Bria M. Adams; Brian L. Rubin; Issa J. Hanna; Sarah Razaq Sallis; Wilson G. Barmeyer; Susan S. Krawczyk; Mark W. Smith; Clifford E. Kirsch; Michael B. Koffler; Olga Greenberg; Adam B. Cohen; Bruce M. Bettigole; Cynthia R. Shoss; Carol T. McClarnon
- Law Firms: Eversheds Sutherland (US) LLP - Washington Office; Eversheds Sutherland (US) LLP - Atlanta Office; Eversheds Sutherland (US) LLP - New York Office ; Eversheds Sutherland (US) LLP - Washington Office; Eversheds Sutherland (US) LLP - New York Office; Eversheds Sutherland (US) LLP - Washington Office
Broker-dealers selling annuity products in New York will soon need to comply with New York's recently amended Insurance Regulation 187 ("Suitability and Best Interests in Life Insurance and Annuity Transactions"), which, among other things:
- Significantly expands the duties and obligations of such broker-dealers by imposing a best interest standard on recommendations to New York consumers about annuity contracts;
- Imposes a duty to disclose to New York consumers relevant suitability considerations and product information that provide the basis for any recommendations; and
- Applies not only to purchase and replacement transactions, but also to certain post-issuance transactions and recommendations to hold.