New professional platform designed specifically for fiduciaries

WESTLAKE, Ohio – November 15, 2018 – Proformex, creator of a proactive life insurance policy monitoring platform designed to give insurance agents, advisors and trustees better oversight and visibility into the performance of in force life insurance policies, today announced that its new professional platform will help ensure compliance with the New York State Department of Financial Services’ (DFS) new regulations for “best interest” standards.   

In July, the New York State DFS issued a final regulation adopting a "best interest" standard for those licensed to sell life insurance to protect New York State consumers from conflicted advice. The new regulation requires “insurers to establish standards and procedures to supervise recommendations by agents and brokers to consumers with respect to life insurance policies issued in New York State so that any transaction with respect to those policies is in the best interest of the consumer and appropriately addresses the insurance needs and financial objectives of the consumer at the time of the transaction,” according to Section (b) of the First Amendment to 11 NYCRR 224.

“As the federal government continues to roll back essential financial services regulations, New York once again is leading the way so that consumers who purchase life insurance and annuity products are assured that their financial services providers are acting in their best interest when providing advice,” said Superintendent Maria T. Vullo. “It is essential that a provider adhere to a high standard of care and only recommend insurance and annuity products that are in the consumer's best interests and not be influenced by a producer’s financial incentives.  With this final regulation, New Yorkers can now be confident that the insurance agents, brokers and companies that they rely on are recommending the right products.”

Within its new professional platform, Proformex provides key features to help meet this new standard of care for the policyowner’s best interest. In addition to automating the annual policy review process, Proformex also offers trust and Crummey management functionality for proper maintenance of irrevocable life insurance trusts (ILITs). By combining performance monitoring with product comparisons and life settlement evaluations, Proformex helps fiduciaries and trustees follow customary best practices for reducing liability and improving client relationships while ensuring the policyowner’s best interests remain intact.

Proformex CEO Kristie Beck added: “When it comes to regulations, New York is a trendsetter for the rest of the country, and state by state other regions will begin to adopt the same new standards for fiduciaries and trustees. Proformex is proud to support financial services providers with the resources and tools they need to stay ahead of the curve.”

About Proformex

Headquartered in Westlake, Ohio and founded in 2016, Proformex is the provider of on-demand, SaaS solutions to life insurance policy owners, beneficiaries, insurance agents and fiduciaries. Designed to proactively alert customers of potential problems with their life insurance policies, Proformex protects policies against lapsing, degradation and asset erosion. By monitoring five key contract parameters – lapse age, death benefit, premium, crediting rate and Comdex – Proformex offers better portfolio oversight and control.

Media Contact

David Morris
866.998.8654
dmorris@proformex.com