According to the St of WA Office of Insurance Commissioner Mike Kreidler:
Even though the NYL policy did not provide a minimum guaranteed fixed interest rate, it is perfectly acceptable for them to state in the Policy: "Minimum Guaranteed Fixed Interest Rate: 3%." The policy holder should have known that this was an Option explained elsewhere.
According to the Office of Mike Kreidler:
It is perfectly acceptable for the Guaranteed Death Benefit feature and its costs to be excluded from the NYL Policy because it is covered in the Prospectus. The consumer should have known that this feature and its costs were part of what was purchased by reading about them in the Prospectus.
According to the Office of Mike Kreidler: It is perfectly acceptable that the "Free Look Provision" (the 10 days you have to cancel with no penalty) only refers to the reviewing the policy and does not inform the consumer that the policy is not a complete or exclusive description of the products purchased and their related costs. The consumer should know that key information is only contained in the Prospectus.
When an Agent meets with a customer, they review the parts of the prospectus that apply to the annuity(ies) and features they are recommending. However, the customer is asked to sign a Client Profile that states, "I/We have read and understood the prospectus and above disclosure ….." This will be used against the consumer if there is a problem and it is used by unethical agents to mislead.
Product or Service Mentioned: New York Life Insurance Life Insurance.