“New York State Insurance Department Regulation 60 is a consumer protection law for replacement of insurance policies. Regulation 60 applies to life insurance and annuity contracts. This regulation requires insurance companies to provide specific information and disclosure to consumers. Consumers benefit by being able to compare existing and proposed policies.” Sapling by Peter Neeves 04/14/2010.
How do I know if a Reg60 is necessary?
If your client is applying for new insurance where an existing policy was surrender or will be surrender within 6 months of the new insurance taken effect.
Are additional forms needed with the application?
Yes, in addition to the Definition of Replacement (which is a part of a normal application), you need to complete an Authorization form and Important Notice.
Does the Reg60 extend the time frame of underwriting a new policy?
No, the phase one of the Reg60 is completed at the same time of underwriting.
Are there any exemptions?
Reg60 does not apply if the new coverage is paid and owned by an employer/business, or if an existing group coverage is being replaced due to separation of employment.