What you need to know before submitting a MassMutual application in New York

Required Training

• All brokers must complete Best Interest and MassMutual proprietary product training PRIOR to obtaining an application with a contract state of NY.
  
• See NY Reg 187 Quick Start Training for Brokers for training instructions.

All pages of a signed and dated illustration must be submitted with the application

• Illustration must include insured’s full name, age, gender and plan.
• Broker’s name, license number if required and business address.
• Illustration must include product summary and disclosures.
• Illustration must match the benefits on the application.
• Illustration must be signed prior to or same day as the application. 
• Illustrations dated after the application date will not be accepted.

DocuSign for Illustrations now available!

For applications in NY State that require a signed illustration you can now have the client DocuSign prior to attaching to EZ-app.  Click here for directions.  As a reminder, if the client is applying for multiple policies each illustration must be signed and attached to the EZ-app.  There will be no exceptions. 

• Producers must disclose suitability rationale on the Life Products Suitability Questionnaire (FR2282-LI) that forms the basis of the recommendation. 
• All NY applications must include the Reg 187 Suitability Questionnaire.  Information must be obtained on the policy owner.  We recommend that you familiarize yourself with the questionnaire so that you are obtaining the appropriate information from your clients. 
• Use the Suitability Acknowledgment and Certification for changes to existing policies that require affordability information and do not require a collection of full suitability information. 
• Use the Suitability Disclosures for Business Cases (FR2289) form for business cases. This form may only be used when a Business Financial Supplement (FR2074) has been provided to underwriting with the application.
• The Reg 187 Pocket Guide can help you determine suitability for clients when the contract state is NY. 
• The Guide to the Life Insurance Suitability Questionnaire breaks down each section of the suitability questionnaire and is a good reference.
• Complete Life Products Post Issue Full Suitability Questionnaire (FR2291) for the following changes to an existing policy:
           - Face increase to an existing policy
           - Addition of a new unscheduled ALIR
           - Term or VUL conversion in the first year
• Upon submission, suitability and underwriting processes will run concurrently.
• There is a different suitability form for Conversions

• Our Client Brochure can be shared with your clients to walk them through how Reg 187 helps to prioritize their best interests, as well as Mass Mutual's approach for complying with this regulation. 
  
• This Suitability Worksheet with effective tax rates can help you and your clients determine their annual household disposable income. This can assist in ensuring coverage will be affordable in light of current and future expenses.
• Use this Life Insurance Needs Assessment Questionnaire to help identify current, short-term and long-term future needs and appropriate products in line with the client’s financial situation.

MassMutual will allow term insurance conversions to the Additional Life Insurance Rider (ALIR) in New York, with the additional requirement that advisors submit the full Life Products Suitability Questionnaire (FR2282-LI). Conversions to ALIR in New York had been prohibited since Dec. 31, 2019, because of financial suitability requirements included in Regulation 187 that had not yet been developed.

 Because there is no contractual right to convert to ALIR, cases in New York must be approved by the Life Suitability team to convert to ALIR. If a client is declined for ALIR, the case may still be converted without the ALIR.

Conversion requirements that apply in all states
MassMutual will permit conversions of term policies to scheduled, unscheduled, or planned ALIR as follows:

• The term policy converted must be at least one year old.
• The whole life policy must be newly issued.
• The conversion cannot be a face-amount increase to an existing whole life policy.
• The Renewable Term Rider (RTR) and Life Insurance Supplement Rider (LISR) cannot convert to ALIR.

MassMutual will only initiate external 1035 exchanges for New York (N.Y.) contract-state applications after policy issue due to potential impacts of  NY Regulation 187.  Initiating 1035 exchange transfers after issuing new MassMutual policies curbs the potential for case declines and uninsured clients.

Brokers are required to do more leg work before application submission when replacing a policy. Please note that this does not replace the current MassMutual Regulation 60 process, this is in addition to. *There is no exception to the submission of the below requirements with an application.

• Signed Conforming Illustration
• Replacement Producer Explanation (FR2332) – (does not need to be signed by the client)
• Whole Life to Whole Life Product Replacements
• Inforce Illustration from the Replacement Company
• Replacement Comparison Worksheet (FR2331)  - (does not need to be signed by the client)
• All Other Replacements
• Annual/Quarterly Statement or Policy Specification Page(s) or any other product documents showing policy values, benefits projections, etc.
• Supplemental Replacement Documentation Sheet (FR2342) – (does not need to be signed by client)

• For producers who are licensed to sell and intend to sell annuities in New York, they must comply with all NY Regulation 187 training requirements.
• This document provides an overview of NY Regulation 187, key considerations and what is different for producers with regard to the MassMutual Annuity sales process for clients who reside in New York.
• For the Life Insurance and Annuities Disclosure form (FR2280), click here

• For a complete guide to best practices for every transaction, visit our NY Reg 187 Quick Reference by Transaction Worksheet