Valmark Financial Group is getting ready for the possibility that New York state’s new Regulation 187 best interest standard really will apply to life insurance as well as to annuities.
Valmark — an Akron, Ohio-based life insurance distribution and policy management company — announced today that it has updated its Life Assurance 360 life insurance coverage design, implementation and management program to comply with the New York state best interest standards, and similar standards developed by the CFP Board.
A best interest standard requires the sellers of affected products to put clients’ interests first, and to document that they have put the clients’ interests first.
New York regulators say the state’s best interest standard will apply to annuities starting Aug. 1, and to life insurance starting Feb. 1, 2020.
Valmark said one part of its best interest compliance effort involved updating an existing Life Insurance Design Questionnaire form.
Valmark created the questionnaire with help from life insurers, and from the financial services firms that use Valmark services.
The questionnaire helps connect the life insurance policy benefits shown in the policy performance illustration with the policy contract features. That information can help play an important role in educating clients and improving coverage recommendations, Valmark said.