Regulation 187 governs the behavior of New York life insurance and annuity producers when making recommendations with respect to a life insurance or annuity policy owned or being purchased by a New York consumer. Its purpose is to prevent acts or practices that are deceptive or unfair. A close reading of the regulation reveals many similarities to the Securities and Exchange Commission’s (SEC) new Regulation Best Interest. Both require the individual making the recommendation to act in the “best interest” of the consumer. Both impose increased record-keeping requirements. Both emphasize principles-based selling practices.
Author: Douglas B. Richards, JD, MBA, CLU, CFP, is senior advanced markets consultant at LPL Financial in Fort Mill, South Carolina.
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