How demise of 'Chevron' could affect sales of life insurer products

The recent Supreme Court decision overturning Chevron deference will limit the ability of federal agencies to enforce regulations. The decision will reshape the way federal agencies interpret and craft rules to execute the intent of Congress as well as hobble agencies' ability to defend existing rules from court challenges.

In this Life Annuity Specialist article, Eversheds Sutherland Of Counsel Mark Smith said the judge in any case challenging the DOL's 2024 fiduciary rule will be exercising independent judgment as to the meaning of "investment advice for a fee" in the Employee Retirement Income Security Act, or ERISA, as instructed by the Supreme Court.

The U.S. Court of Appeals for the Fifth Circuit in 2016 has already provided the reading of the statute a court would reach if no agency were involved. "I struggle to see how any court, viewing the statute through a neutral lens and after full consideration, ultimately could come out in the same place DOL did in its regulation."

Full article (subscription required)