Best Interest Standard Proposal for Life Insurance SalesIn a Press Release dated December 27, 2017, New York State Governor Andrew Cuomo announced proposed Department of Financial Services regulations which would require that life insurance and annuity sales in New York State to meet a “Best Interest” Standard. Proposed legislation is now designed to protect consumers from high insurance costs and conflicts of interests.
The Governor’s Best Interest Standard of care for all life insurance and annuity product sales seeks to require a far more protective standard than New York’s current suitability regulation or the current Fiduciary Rules of the United States Department of Labor.
Another purpose of the proposed role is to make sure that the customers’ needs come first without regard to the financial incentives offered to the selling insurance company and their salesman. The proposal is also designed to protect consumers from financial exploitation. Will this proposal pass? It has been given a good chance of success.
Have you been improperly sold a life insurance or annuity product in New York State? If so, we offer a free initial consultation to customers who have been victimized by unscrupulous life insurance salesmen. For a free initial consultation, contact the Law Offices of Timothy J. O’Connor at (518) 426-7700.