Yearly Archives: 2021

“What required a scalpel, the Department used a sledgehammer:” Vagueness of Best Interest Regulation Raised as Key Issue in Oral Arguments

On Wednesday, Howard Kronberg of Keidel, Weldon, and Cunningham presented oral arguments on appeal of our ongoing challenge to the best interest regulation for life insurance and annuities (Regulation 187). Our key argument for overturning the regulation is that it is unconstitutionally vague. Specifically, the regulation compels speech by the agent or broker (i.e. making a specific product recommendation), yet fails to provide concrete guidance on how specifically to comply with the law. The regulation holds that the producer must act in the “best interest of the customer” but is silent on what is sufficient to demonstrate they acted in the customer’s best interest, nor…

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When Can a Homeowners Policy Be Cancelled for ‘Willful or Reckless Acts or Omissions’?

​Question from a Big I New York member: We have a client who has a homeowners policy with [Carrier X], which was not supposed to be renewed by the carrier due to a 1/1/2020 loss involving "under-age drinking".  The policy was due to be non-renewed at its March 4th, 2021 expiration date. On February 5th, 2021, the underwriter notified us that the policy was inadvertently renewed; however, a mid-term cancellation will be issued for "Increase In Hazard" surrounding the 1/1/2020 loss.  A copy of the Cancellation Notice is attached. I'm concerned about the legality of this.  Is a carrier allowed to mistakenly renew a policy when…

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Are Insurance Workers Eligible for the COVID-19 Vaccine?

​​Question from a Big I New York member: Do you know if insurance workers are eligible for the COVID vaccine coming March 17th? Answer: The state's guidance isn't all that clear. The website states: Beginning March 17, the following essential workers are eligible:Public-facing government and public employeesNot-for-profit workers who provide public-facing services to New Yorkers in needEssential in-person public-facing building service workersThere is no explanation of what that last one means. However, the phrase “public-facing building service workers" sounds to me like custodial type workers. That conclusion is backed up by the news release the governor issued the other day: Under this new expansion of eligibility, the following essential…

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