Two upcoming regs will affect business in New York (BGA version)
Early next year, the second component of Reg 187, specific to life insurance, and new cybersecurity requirements will take effect for business written in New York—whether it’s new or existing business.
Your partnership is important to us. We’re here to support you, as you help your producers do business in NY. We’re working on changes to help your advisors meet the requirements and avoid potential business processing delays. Later, we’ll share specific action steps. For now, put this on your radar so you understand how the regulations impact you and your advisors.
Reg 187 takes effect February 1
The New York Department of Financial Services (NYDFS) issued the “Suitability and Best interests in Life Insurance and Annuity Transactions” regulation to adopt a best interest standard for life insurance.
Affected product lines: Individual life insurance (and annuities which was effective last August)
There are two requirements your producers need to meet:
- Best interest training
- Our preferred platform is RegED, because we will have an automated solution to tell us who has completed the course. LIMRA and Kaplan are also approved but will require manual proof of completion.
- If they’ve already completed a RegED or LIMRA training, or the Kaplan training that covered both life insurance and annuities, they do NOT need to do it again.
- Training already completed with any other vendor will need to be reviewed in advance.
- Kaplan’s annuities-only training does not meet life insurance requirements.
- Life insurance product education
Watch for more information about approved training options, product education resources, and business process changes coming soon.
Cybersecurity takes effect March 1
Certification of compliance to the regulation changes introduced in Section 500.11 by NYDFS will be required for the first time in March 2020 to indicate you have written plans to address data security as it relates to your risk assessment. We’ll be sharing business process changes later this year.
Affected product lines: Individual life insurance, Annuities, and Individual disability insurance
More details will come. But if you have a question now, we’re here to help. Call the National Sales Desk at 800-654-4278.
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