New York Best Interest Standard Violates Law: NAIFA-NY
November 27, 2018 by Allison Bell
A group for New York state life insurance producers says New York state’s new “best interest” standard regulation clearly conflicts with the state’s statutory definition of the term “insurance agent.”
The National Association of Insurance and Financial Advisors — New York State Inc. (NAIFA-NY) makes that point in a suit against the New York Department of Financial Services.
The new New York state best interest standard, which is set to take effect Aug. 1, 2019, requires an agent to put the needs of an annuity or life insurance customer first.
But, under Section 2101(a) of New York Insurance Law, “an insurance agent acts on behalf of an insurer,” NAIFA-NY says in a petition filed in a New York state court in New York County, in connection with NAIFA-NY v. New York State Department of Financial Services and Maria T. Vullo (Case Number 2018-160701). “Agents also have contractual duties to insurers on whose behalf they operate.”
Click HERE to read the full story via ThinkAdvisor.