Insurance regulators in New York have scheduled four hearings to explore the suitability of life insurance and annuities in the state and possible solutions.

The New York State Insurance Department announced the hearings as a way to gather information on the transactions from the public, consumer groups, industry representatives and other interested parties.  The hearings are scheduled for Aug. 6 in Buffalo, Aug. 13 in Albany, Sept. 9 on Long Island, and Sept. 16 in New York City.

The department said the goal is to see whether new oversight or regulation is required to protect consumers now that “purchases of life insurance and annuity contracts have become increasingly complex financial transactions.”

“Consumers of all ages and seniors in particular need to know if the products they’re buying are right for them,” said Kermitt J. Brooks, acting insurance superintendent, in a statement. “So many new life insurance and annuity products have come onto the market and some are so complex, it may be hard for someone to figure out what the right product is and why.”

The focus of the hearings, the department said, is whether a particular product is the right one for an individual consumer. Regulators pointed to “a proliferation” of new products, particularly in the area of annuity contracts, now offered to consumers of all ages as another reason for the hearings.

The National Association of Insurance Commissioners has adopted a Suitability in Annuity Transactions Model Regulation, which 30 states have implemented in some form through statute or regulations. The NAIC recently circulated a proposed draft revision to the model regulation.

Regulators in New York have not adopted the NAIC model and do not have a regulation or statute that specifically bans unsuitable sales.  Current regulations, the department said, try to make sure life insurance and annuity sales are suitable by mandating certain disclosures and comparisons.

A 1998 report by the department said, “The law assumes that an informed consumer is the best judge of what may be suitable or appropriate for himself or herself. As products become more complex and sophisticated, the need for professional advice and assistance increases and this assumption can be questioned.”

The hearings will seek to determine the effectiveness of the current regulations and whether the department should create new ones to outright ban unsuitable sales of life insurance and annuities.

“We want to hear from everyone,” Brooks said. “Only by hearing from consumers, producers, companies and everyone else involved in the process can we fully understand what needs to be done.”

For more information, visit the New York State Insurance Department’s website.