Suitability and Best Interests Regulation

The Department of Financial Services issued a regulation titled Suitability and Best Interests in Life Insurance and Annuity Transactions, adopting a best interests standard for those licensed to sell life insurance and annuity products in New York. Amendments to 11 NYCRR 224 (Insurance Regulation 187) will ensure that all recommendations related to the sale of these products will be in the consumer’s best interests. The new regulation became effective August 1, 2019 with respect to annuity transactions and February 1, 2020 with respect to life insurance policies.

The regulation clarifies the duties and obligations of insurers and producers, requiring them to establish a best interests standard of care and a program of supervision to ensure compliance by both the insurer and the producers recommending its products. Compliance includes the insurer’s responsibility to ensure that every producer is adequately trained to make the recommendation. The regulation does not require the completion of a specific training course, nor is the training a requirement to maintain the insurance license.

As a courtesy to New York producers, Provider Organizations approved to offer continuing education (CE) courses have developed suitability/best interests courses and have DFS approval to offer these courses for CE credit. A producer completing these courses can earn CE credit towards the renewal of their insurance license and may satisfy the suitability/best interests training requirements of the insurance companies with whom they work. It is the responsibility of the producer to know these training requirements.

DFS approval of these provider organizations or courses does not constitute acceptance of any explanation or interpretation of Regulation 187 that may appear in the course materials nor should it be construed as the Department requiring, approving, or favoring any particular approach to compliance with the regulation.

For additional information regarding the approved continuing education courses, contact the following Approved Provider Organizations: