Crain’s New York Business: Op-Ed: New Ruling Will Harm the Life Insurance Industry and Those Purchasing Policies

November 21, 2022

O’Melveny partner Gary Svirsky and counsel Janine Panchok-Berry co-authored this article discussing Regulation 187, a rule recently upheld by the New York Court of Appeals that will shrink the life insurance market. “The Department of Financial Services imposed a best-interest standard on transactions, effectively turning insurers, agents and brokers into fiduciaries,” the authors wrote. “The new rule—known as Regulation 187—tries to address the Financial Services Department’s concern that ‘producers and insurers’ might recommend transactions that prioritized their own compensation over the consumer’s best interest. But the department presented no facts in its regulatory or court filings that evidenced this problem. It also did not show that the rule would benefit consumers.”

Crain’s New York Business subscribers can read the full article here.