In January, senior NAIFA-NYS officials held the first in a series of regulatory affairs discussions with the representatives of several bureaus of the New York State Department of Financial Services, including the Deputy Superintendent for Life Insurance, James Regalbuto.
During the course of that meeting NAIFA-NYS urged the DFS to consider increasing the cumulative maximum training allowance subsidy for agents contained in Regulation 50 which was enacted pursuant to Insurance Law Section 4228(e)(3)(G). We explained that the current limits have not changed since 2007 and that many NAIFA-NYS members had informed us that it has become more difficult, over time, to recruit and retain life insurance producer trainees when compensation rates had increased in other sectors of the financial services industry.
We were recently informed that the DFS would seek to amend Regulation 50 to increase the training allowance limits by 15%. NAIFA-NYS has received an advance copy of the regulation and is currently reviewing it.
The higher allowances should take effect at the end of the regulatory implementation process in the near future.