Background. In 2018, the New York State Department of Financial Services (NYDFS) issued a final version of its First Amendment to Insurance Regulation 187, retitled “Suitability and Best Interests in Life Insurance and Annuity Transactions” (Amended Regulation 187).1 Amended Regulation 187 will impose a best interest standard on recommendations of purchase, replacement and certain other post-issuance transactions involving life insurance2 and annuity products. According to the NYDFS press release announcing the issuance of the final version of Amended Regulation 187, a goal of the amended regulation is to “fill in regulatory gaps” perceived by NYDFS resulting from the elimination of the federal Department of Labor’s Fiduciary Rule.3

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