New York Insurance Regulation 187 Overturned by the Appellate Division of the New York State Supreme Court
Client Alert
In a stunning reversal of efforts by the New York State Department of Financial Services (“DFS”) to impose a “best interest” standard on all life insurance sales, the Appellate Division struck down recent revisions to New York Insurance Regulation 187 – Suitability in Annuity Transactions (“Revised NY Regulation 187”) as unconstitutionally vague. Insurers and producers who have been struggling with the complexities of complying with inconsistent new sales practice standards issued by DFS, the National Association of Insurance Commissioners (“NAIC”) and the U.S. Securities and Exchange Commission (“SEC”) are now faced with even more uncertainty as DFS is almost certain to appeal to the state’s highest court.