Reg 60 and IRAs
In a recently released OGC opinion (www.ins.state.ny.us/ogco2007/rg070613.htm) the NYSID opined that Reg 60 paperwork is not required when the assets of a fixed-annuity IRA are rolled over into a non-insurance IRA.
While that is an important clarification of Reg 60, perhaps even more helpful is the statement in the Analysis section: Reg 60 "only applies to insurance-to-insurance replacement transactions." Because of the Reg's emphasis on the new policy being delivered, I have had several companies ask about the situation where a non-insurance IRA product was being replaced with an IRA annuity. While it has been my opinion that Reg 60 would not apply in that situation, this OGC opinion makes clear that the Department agrees. Because the first product was not an insurance product, the transaction is not an insurance-to-insurance transaction and Reg. 60 does not apply.
