New York has had a suitability regulation for producer annuity recommendations, but this regulation did not apply to life insurance. The regulation has been expanded to:
- any producer recommendation to a N.Y. resident of a transaction involving any type of life insurance
- a producer recommendation to a N.Y. resident of either a new life insurance policy or an in-force transaction (for example, a conversion of a term policy into a whole life policy)
- require the producer to meet a “best interest” standard when recommending the purchase of life insurance
- require the producer to have a “reasonable basis” when recommending life insurance to a N.Y. resident, including having confidence that the client has the financial ability to make the premium payments and for the producer to document that basis
- require the producer to make certain disclosures to a N.Y. resident when recommending any transaction (whether a new sale or in-force) that involves the payment of new compensation to the producer
- In addition you will need to complete carrier specific life product training, this new training is required to sell a life policy in New York beginning 2/1/20! The list of training links is available on our Get Licensed Page and will be updated as more information is given to us by the carriers.
Here’s your guide to being compliant with Reg 187:
- Complete Reg 187 training before 2/1/2020 (we suggest RegEd as the course is free)
- If you have completed Reg Ed course #484 or #485 you have satisfied your life Reg 187 training requirement.
- Click here to see a link to state approved CE providers.
- Send training certificate to firstname.lastname@example.org
- Carriers will be changing their suitability forms so please verify with KAFL that you have the most current version of the paperwork