Court Grants PIANY and Big I NY Request in NYDFS Regulation 187 challenge

ALBANY, N.Y.—The New York State Supreme Court in Albany ruled in favor of a consolidation motion filed by the Professional Insurance Agents of New York State and Big I New York in the ongoing lawsuit over amendments to New York State Department of Financial Services (DFS) Insurance Regulation 187. The court granted a motion to consolidate the action with a similar lawsuit that was filed by the National Association of Insurance and Financial Advisors in New York County. Additionally, the venue for both actions will now be in Albany County.

“We are pleased the court ruled in favor of our request.” said Big I NY Board Chairman Louis Atti, CPCU. Atti further remarked “Hopefully, this decision will lead to a swift resolution of our legal challenge.”

On Nov. 16, 2018, New York’s biggest and most influential insurance agent and broker associations filed a lawsuit against the DFS over amendments to Regulation 187, which would fundamentally alter the agent/broker-customer relationship in the sale of life insurance and annuities, and ultimately harm consumers. PIANY and Big I New York, who collectively represent thousands of insurance agents and brokers across New York State, are challenging the DFS on the basis that it acted beyond its authority when it adopted an amendment to Regulation 187, imposing a vague and subjective standard of care for insurance agents and brokers that is contrary to existing law.

“The Regulation 187 amendment we are contesting has the potential to restrict open, honest discussion with clients, drive out business, weaken the market—and ultimately would harm New York State’s insurance-buying public,” said PIANY President Jamie Ferris, CIC, AAI, CPIA. “This ruling is one small success in a challenge that we hope will bring a huge victory for agents and their clients.”