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Introduction to Suitability

Sep 9, 2019 10:32:13 AM

With new best interest standards regulations, producers must be able to demonstrate that their client recommendations and sales transactions are suitable. What criteria are used to define "suitable"? Learn more in the video below. 

To learn more about Regulation Best Interest, visit our Reg BI resources page.


The New York Department of Financial Services has dramatically expanded the obligations of insurance producers by amending Insurance Regulation 187.

Under the amended regulation, insurance producers must “act in the best interest of the consumer” and satisfy a new ‘best interest’ standard when making recommendations for life insurance and annuity policies.

Producers must be able to demonstrate that sales transactions are Suitable by:

Disclosing to the consumer all relevant suitability considerations and product information that provide the basis for any recommendations and;

Documenting the basis for the recommendation made and the analysis to support that recommendation.

The amended regulation also requires establishing and maintaining a supervisory system designed to achieve compliance with the regulation, including standards and procedures for:

Collecting consumer’s suitability information;

Documenting and disclosing the basis for any sales recommendations and;

Auditing and reviewing recommendations to ensure compliance with the regulation.

Visit our website to learn how Proformex can support you with this new best interest standard.

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