Annuity rates reduce for all products .10bps
- All applications must be signed and dated on or before 8/26/19
- Applications must be dropped off to KAFL by 2:00pm on 8/23/19
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:
Note: A recommendation does not include:
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:
*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:
Source information: Compliance Bulletin 6/19/19 VOYA
For agent/registered representative use only. Not for public distribution.
For annuity owners who don’t need an RMD there are new products that automatically roll the RMD payment into a second annuity and withholds the associated tax.