State RegulationsNY specificDifficulty 2/5
A New York producer is recommending a deferred annuity with a long surrender-charge period to a senior consumer who appears increasingly confused during their meetings. Under Reg 187, the producer must...
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Reg 187 (11 NYCRR Part 224.4), the risk that cognitive or physical impairments of a senior affect the decision is expressly one of the factors the producer must weigh with diligence and care in making a best-interest determination. The regulation does not flatly bar annuity sales to seniors and requires no physician's note — but neither family consent nor a high guaranteed rate substitutes for the producer's own evaluation of whether the recommendation genuinely serves this consumer.
Why the other options are wrong
- B) Reg 187 does not prohibit sales to seniors; it requires heightened attention to impairment risk within the best-interest analysis.
- C) No physician-clearance requirement appears in the regulation; the duty is the producer's own diligent evaluation.
- D) A family member's consent does not discharge the producer's duty to consider impairment risk and the consumer's best interest.
Memory hook
Confused senior + Reg 187: impairment risk is a required factor — weigh it, don't outsource it.