Industry trade associations LIMRA and LOMA announced Monday they are offering training for New York's best interest and suitability regulation, which takes hold Aug. 1.
LOMA's and LIMRA's combined online training program, announced Monday, is designed to help both sales agents and producers as well as home office employees understand and comply with the new rule through two comprehensive courses, the groups said.
The courses take about 45 minutes to complete, are interactive and include a mix of education and scenario-based material, the organization said. LIMRA and LOMA, which have a combined membership of more than 1,300 insurance and financial services companies globally, are part of their nonprofit parent, LL Global.
New York State Regulation 187 requires insurance agents, brokers and insurers "to establish standards and procedures" so that any transaction can be demonstrated to be in the "best interest of the consumer."
The producer training course is based on compliance with the new regulation. The other course teaches the home office personnel about the impact and reach of the best interest rule in every aspect of the business from suitability review to customer service.
These courses will teach the difference between sales transactions and in-force transactions, how a producer can demonstrate that she or he is acting in the best interest of a consumer, the organization states.
Suitability information that may be collected under the new regulation, factors to consider when recommending a replacement product, the insurer's obligations related to suitability reviews, supervision and prevention of financial exploitation and abuse are also covered.
