State insurance group suggests changes to N.Y.’s life-insurance suitability proposal
DeWI'IT - Big I New York has offered specific suggestions for amending
The organization submitted a comment letter to the
Its letter to DFS outlines the concerns raised at the meeting and offers specific suggestions for amending the proposed rules.
Big I New York called its suggestions "pro-consumer changes."
DFS in December proposed changes to Insurance regulation 187 that would add a new 'hest interests" standard to the sale of all life insurance products and annuities. It would also apply the same suitability analysis currently in place for annuities to all life-insurance transactions.
The department suggested the changes after rules from the
'While Big I New York supports the department's goal of protecting consumers, it is concerned that the proposal would make buying life insurance more complicated for consumers and lead to fewer individuals buying these important policies that protect families from financial ruin when a love one dies,"
One suggestion the association offered to DFS was to exclude straightforward products such as term and group life insurance from the proposal, which is more "appropriately designed for more complicated" annuity and life products.
The association also made suggestions to ensure the insurance agents can still easily process policyholder requests to make changes to their policies and that agents can still provide informational materials to their customers that help them understand their policies better.
'We look forward to continuing to work with the department as they consider comments on this important proposal," said MacDonald.
Big I New York says it advocates for educational, political, and business interests of its more than 1,750 agencies and their 13,000-plus employees.
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