Valmark Positioned For Implementation Of Best Interest Standard

On April 17, 2019, Valmark Financial Group announced in a press release that it has updated its Life Assurance 360™ process (LA 360™) to help insurance producers comply with the state of New York's Regulation 187 and the updated standards by the CFP Board, both of which require a best interest standard for life insurance transactions. More importantly, use of the LA 360™ tools, notably the Life Insurance Design Questionnaire™, will facilitate better and more consistent results from advisors for clients on the policies they place and manage.  

Regulation 187 is set to go into effect on August 1, 2019, for annuity transactions and February 1, 2020, for life insurance transactions in the state of New York. Industry observers suggest that additional states are quietly preparing to release a similar regulation this year.

The CFP Board also significantly revised its Code of Ethics and Standards of Conduct, noting an application of the fiduciary standard that requires CFP® professionals to "act in the best interest of the client at all times when providing financial advice". This would apply to any situation where a person with a CFP® designation provides advice or recommends life insurance products. The revised rules, which go into effect October 1, 2019, no longer allow a CFP® to segregate life insurance transactions from financial planning services and the more rigorous best interest fiduciary standard.   

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