Here’s your guide to being compliant with Reg 187:

  • Complete Reg 187 training before 8/1/2019 (we suggest RegEd as the course is free)
  • Send training certificate to
  • Carriers will be changing their suitability forms so please verify with KAFL that you have the most current version of the paperwork

Even if you completed carrier specific annuity product training in the past, this new training is required to sell an annuity in New York after 8/1/19!


New York Regulation 187 – Suitability and Best Interests in Life Insurance and Annuity Transactions

The New York Department of Financial Services regulates trade practices in the business of insurance to prevent acts or practices that are unfair or deceptive. The Insurance Law establishes standards of conduct for insurance producers, including that producers must act in a competent and trustworthy manner. New York’s Suitability and Best Interests in Life Insurance and Annuity Transactions (Regulation 187) becomes effective August 1, 2019 (for annuity contracts) and February 1, 2020 (for life insurance policies).

The purpose of Regulation 187 is to clarify the duties and obligations of both insurers and insurance producers. For producers, it provides clarification regarding their duties and obligations when making recommendations to consumers with respect to policies delivered or issued for delivery in New York. This helps ensure a transaction is in the best interest of the consumer and appropriately addresses the insurance needs and financial objectives of the consumer at the time of the transaction. The best interest standard requires a producer to adhere to a standard of conduct to be enforced by the superintendent. Please note, under New York Regulation 187, the term “policy” is defined to include life insurance policies and annuity contracts.

All producer requirements are applicable to every producer who materially participated in the making of a recommendation and received compensation, even if they had no contact with the consumer.

Regulation 187 defines a recommendation as one or more statements or acts by a producer to a consumer that:

  1. reasonably may be interpreted by a consumer to be advice and that results in a consumer entering into or refraining from entering into a transaction in accordance with that advice; or
  2. is intended by the producer to result in a consumer entering into or refraining from entering into a transaction.

Note: A recommendation does not include:

  • Providing general factual information to consumers. This may include advertisements, marketing materials, general educational information regarding insurance or other financial products, and general administrative services to the consumer.
  • A recommendation also does not include a consumer’s use of an interactive tool that solely provides a prospective consumer with:
    • the means to estimate insurance, future income, or other financial needs;
    • compare different types of products; or
    • refer the consumer to a producer,

provided the interactive tool is not used by a producer to satisfy any requirements of NY Regulation 187.

Under Regulation 187, transactions are grouped into two basic designations:

  • A “sales transaction” is defined as a transaction based on a producer’s recommendation resulting in the purchase or issuance of a policy, a replacement, conversion or modification or election of a contractual provision with respect to an in-force policy and generating new sales compensation*; and
  • An “inforce transaction” is defined as a transaction, based on a producer’s recommendation, resulting in modification or election of a contractual provision with respect to an in-force policy that does not generate new sales compensation*.

*New sales compensation does not include compensation provided to a producer when, after the initial premium or deposit under a policy, the consumer pays further premiums or deposits pursuant to the policy.

Any recommendation made by an insurance producer, whether in association with a sales transaction or an inforce transaction, must be in the best interest of the consumer taking only the interest of the consumer into consideration; recommendations of sales transactions must also be based on evaluation of suitability information. The amount or receipt of incentive is not to influence the insurance producer’s recommendation. An insurance producer shall not make a recommendation to a consumer to enter into any transaction about which the producer has inadequate knowledge; as such, if you have questions about a transaction on a consumer’s policy, please contact the Company for additional information.

A producer shall not dissuade, or attempt to dissuade, a consumer from:

  1. truthfully responding to an insurer’s request for confirmation of suitability information;
  2. filing a complaint with the superintendent; or
  3. cooperating with the investigation of a complaint.

Source information: Compliance Bulletin 6/19/19 VOYA

For agent/registered representative use only. Not for public distribution.

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