Key takeaways:

• The New York Department of Financial Services has issued procedures and disclosure requirements for retained asset accounts (RAA) applicable to all licensed life insurers.
• The New York RAA rules impose greater disclosure burdens than the NAIC Sample Bulletin and NCOIL Beneficiaries’ Bill of Rights combined.
• New York will not allow an RAA as a settlement option default. A lump sum settlement is the required default option. Selection of an RAA requires the affirmative selection by a beneficiary.