Best-Interest Contract Exemption (BICE).

The Best-Interest Contract Exemption (BICE) is a regulatory exemption that allows financial institutions to receive certain types of compensation when providing investment advice to retail customers, provided that the institution adheres to certain conditions designed to protect the customer’s best interests.

The conditions imposed by the BICE include the following:

The financial institution must enter into a written contract with the customer that specifies the terms of the relationship and the investment advice to be provided;

The financial institution must disclose all material conflicts of interest;

The financial institution must commit to acting in the customer’s best interests;

The financial institution must provide the customer with regular updates on the status of their account;

The financial institution must maintain records of all investment advice provided to the customer; and

The financial institution must submit to periodic audits by an independent third party.

The BICE was introduced as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and it is currently applicable to investment advisers who are registered with the Securities and Exchange Commission (SEC).

What is BICE for insurance? BICE stands for Beneficiary Inducement Compliance Exception. It is an exception to the federal Anti-Kickback Statute that allows certain financial arrangements between insurance companies and beneficiaries.

The BICE exception applies to three specific types of arrangements:

1. Arrangements in which the insurance company provides a direct financial benefit to the beneficiary in exchange for the beneficiary's insurance business;

2. Arrangements in which the insurance company provides a direct financial benefit to a third party in exchange for the referral of the beneficiary's insurance business; and

3. Arrangements in which the insurance company provides a direct financial benefit to a third party in exchange for the third party's agreement to promote the insurance company's products to beneficiaries.

The BICE exception does not apply to arrangements in which the insurance company provides indirect benefits to beneficiaries, such as discounts on premiums or cash back rewards.

The BICE exception is important because it allows insurance companies to offer certain financial incentives to beneficiaries without violating the federal Anti-Kickback Statute. This exception helps to ensure that beneficiaries can receive the best possible coverage by encouraging them to shop around for insurance.

What is minimum excess in insurance?

The minimum excess in insurance is the amount of money that the policyholder must pay out of their own pocket before the insurance company will start to pay for any damages or losses. This amount is typically set by the insurance company and will vary depending on the type of policy and the level of coverage.

What happened to the fiduciary rule?

The fiduciary rule, which was set to go into effect in April of 2017, would have required financial advisors to act in the best interest of their clients when providing advice on retirement accounts. However, in March of 2017, the Department of Labor (DOL) issued a final rule delaying the implementation of the fiduciary rule by 18 months. Then, in June of 2017, the DOL issued a proposal to further delay the rule's implementation by an additional 60 days. The DOL has stated that it is still committed to implementing the fiduciary rule, but it has not provided a timeline for when that may happen.

What are the four obligations that broker-dealers must comply with under regulation best interest?

The four obligations that broker-dealers must comply with under regulation best interest are as follows:

1. Disclose material information about the recommendation.

2. Make only recommendations that are in the best interests of the customer.

3. Exercise reasonable care when making recommendations.

4. Adhere to customer-specific suitability requirements when making recommendations. What subrogation means? Subrogation is the process by which an insurance company seeks to recover the amount it has paid out on a claim from the party responsible for the loss. In most cases, the insurance company will have a contractual right of subrogation against the party responsible for the loss. This right is typically set forth in the insurance policy.