Subject: File Number S7-14-08....

August 29, 2008

Sirs;

I am a licensed insurance professional. I am writing to you because I do NOT support the adoption of proposed Rule 151A, which would classify most indexed annuities as securities. In addition, I am concerned that the application of proposed Rule 151A would not be limited to indexed annuities and that other annuity and insurance products that happen to fit the criteria set out in the rule would be brought within the scope of the rule. I urge you to withdraw the proposal. I realize the intentions are for the good but I believe when we continue to put regulations on services and products that should be monitored otherwise, it hurts the consumer more than it helps them.

I firmly believe and am against people who promote unsuitable sales and engage in misleading sales practices should be aggressively prosecuted and subject to meaningful sanctions. I have actually turned in insurance agents who do practice with unethical means of getting "business".

However, concerns about suitability, disclosure and marketing methods, however valid, are not the relevant criteria for determining whether a financial product is or is not a security. Properly structured indexed annuities do not share the same investment risk as investment products such as mutual funds and individual stocks, since with an indexed annuity the risk of a downturn in the related index rests with the issuer of the product and not the consumer.

In my opinion indexed annuities should continue to be treated as insurance products and I hope and trust you will reconsider my views and take a long hard look at what is actually best for the consumer and develope a plan that attacks the "bad" agents. Please do not punish everyone. The state insurance regulatory structure is the appropriate means for addressing the concerns raised by the SEC. Please let the State do their job and help to develope a better system for them to do it. We are committed to working with the NAIC and state insurance commissioners towards the goal of having every state adopt and vigorously enforce the NAIC’s model regulations on annuity suitability and disclosure. I also support NAIFA’s recommendation that a state regulatory body be designated to develop standards for indexed annuity product design so that inappropriate indexed annuity products would be prevented from reaching the marketplace.
For these reasons, I urge the SEC to withdraw the proposed rule. Thank you for your consideration of my views on this matter.

SIncerely,

Jay Hatfield