What is regulation 60 New York?

The purpose of Regulation 60 is to prevent unfair methods of competition and practices in the replacement of life insurance policies and annuity contracts by providing applicants with enough information to make an informed decision regarding replacements. See N.Y.

What is New York Regulation 187?

New York Regulation 187 requires producers and insurers to implement a process ensuring they are acting only in the consumer’s best interest, and not considering the financial interests of the producer or insurer, when recommending or servicing a policy issued in New York.

Is a section 1035 exchange taxable?

Can the insured be changed during a tax-free 1035 Exchange? No, this is treated as a taxable exchange which is taxed in the same manner as a surrender of the original contract and the issuance of a new one.

Which of the following actions is required by an agent who is replacing an existing life insurance policy?

Both the applicant and agent must sign a Notice Regarding Replacement of Life Insurance. The agent must submit a copy of the notice and all sales materials used to the replacing insurer and must also give the applicant copies of the sales materials used.

What is the main purpose of New York Regulation 194?

Regulation 194 regulates insurance producers, including insurance brokers as defined in N.Y. Ins. Law § 2101(k) (McKinney 2009), by requiring them to disclose to purchasers of insurance certain information about the compensation paid to them and their role in the insurance transaction.

What transactions does Reg 187 cover?

Reg 187 covers sales practices (suitability and best interest), disclosure, and documentation. It applies to a transaction or recommendation to purchase (or replace) an insurance or annuity contract issued or delivered in New York state.

What is the difference between 1031 and 1035 exchange?

While a 1031 exchange requires the purchase of a replacement property that is considered “like-kind” to the relinquished property, a 1033 exchange requires the purchase of a replacement property that is “similar or related in service or use” to the lost property.

What is not an allowable 1035 exchange?

So what is not allowable in a 1035 exchange? Single Premium Immediate Annuities (SPIAs), Deferred Income Annuities (DIAs), and Qualified Longevity Annuity Contracts (QLACs) are not allowed because these are irrevocable income contracts.

What is the maximum allowed value of a gift that an agent can give to an insured without violating the regulation on rebating?

Gifts under $25 are permitted provided they are not directly tied to the purchase of an insurance contract. Small gifts (no specific value provided) are permissible provided they are not directly tied to the purchase of an insurance policy.

How many days does the producer have to remit all the premiums to the insurer?

The due date shall be fixed so that premiums or installments of premiums collected shall be remitted no later than 90 days after the effective date of any policy placed with the controlled insurer under this contract.

What does churning mean in insurance?

Transitions between different insurance plans, as well as between insured and uninsured status, are often referred to as “insurance churning.” The causes of insurance churning vary. Changes in job status may result in loss of coverage or transition to a new insurance plan.

When must a producer provide disclosure about information practices to an applicant?

When must a producer provide disclosure about information practices to an applicant? A producer must give a disclosure notice about information practices to an applicant prior to or at the time of signing the application.

Who is exempt from the requirements of the amended Regulation 187 rule?

Interestingly, Reg 187 exempts policies that are used to fund a plan that’s covered by ERISA, a qualified retirement plan, a government or church plan, or a nonqualified deferred compensation arrangement.

Does Regulation 187 cover mutual funds?

Answer: No, section 224.3(h) of Regulation 187 provides: “Suitable means in furtherance of a consumer’s needs and objectives under the circumstances then prevailing, based upon the suitability information provided by the consumer and all products, services, and transactions available to the producer.” [emphasis added].

What is better than a 1031 exchange?

CAN THE DEFERRED SALES TRUST SAVE A FAILED 1031 EXCHANGE? Yes, the deferred sales trust can be an ideal 1031 exchange alternative. If you cannot complete your 1031 exchange, then your qualified intermediary may be able to transfer the funds from your property sale to the deferred sales trust.

What is not allowable in a 1035 exchange?

What policies qualify for a 1035 exchange?

What are “like-kind” exchanges that qualify for 1035 Exchanges?

• Life insurance for life insurance.
• Life insurance for endowment.
• Life insurance for non-qualified annuity.
• Endowment for endowment, with a maturity not later than the original endowment.
• Endowment for non-qualified annuity.

What are the 1035 exchange rules?

Generally, the Section 1035 exchange rules allow the owner of a financial product, such as a life insurance or annuity contract, to exchange one product for another without treating the transaction as a sale—no gain is recognized when the first contract is disposed of, and there is no intervening tax liability.

What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured in Florida?

Effective July 1, 2018, the new legislation substantially expands Section 626.9541(1)(m), Florida Statutes, by allowing insurers and agents to give advertising and promotional gifts having a total value of not more than $100 per insured or prospective insured in any calendar year.

What is the maximum allowed value of a gift that an agent can give to an insured without violating in Florida?

Agents may give a gift or article of merchandise, for the purposes of advertising, to an insured or prospective insured as long as its value is not more than $25. Gift cards or gift certificates are not considered articles of merchandise and constitute an advertising violation.

What is New York state insurance regulation 60?

NEW YORK INSURANCE REGULATION 60 (11 NYCRR 51) FILING GUIDELINES for REPLACEMENT PROCEDURES Section 51.6(e) of Insurance Regulation 60 (“Regulation 60”) requires licensed insurers to establish and implement procedures to ensure compliance with the

What are the requirements of regulation 60?

requirements of Regulation 60. Such section also requires that a copy of the procedures be filed with the Superintendent and any changes to previously filed procedures be filed with the Superintendent within 30 days of such change. These

What are the guidelines for the electronic process for Reg 60 filings?

Regulation 60 filings. The following are guidelines for the electronic process. Please make sure that the procedures and/or screen prints include the following: • Definition of Replacement/Important Replacement Notice should appear before any replacement questions. • The documents requiring electronic signatures should be

What are insurance regulation 60 guidelines for replacement procedures?

FILING GUIDELINES for REPLACEMENT PROCEDURES Section 51.6(e) of Insurance Regulation 60 (“Regulation 60”) requires licensed insurers to establish and implement procedures to ensure compliance with the requirements of Regulation 60. Such section also requires that a copy of the