Subject: Proposed Rule 151A

September 2, 2008

To Whom It May Concern:

I am and have been a licensed life and health insurance agent/broker since January 1, 2006. I have, in the past, also been NASD licensed but chose not to renew this license and retain a relationship with a Broker-Dealer because of overly burdensome regulatory compliance. I now see that you wish to redefine indexed annuities as "securities". I am concerned that this interpretation might also be extended to other forms of insurance products. Although my practice doesn't concentrate on the sale of annuity products I would still urge that you consider the withdrawal of the proposed regulation.

Unsuitable sales and misleading sales practices should be aggressively prosecuted and sanctioned. This doesn't make the improper recommendation that a client purchase an indexed annuity an investment. Unlike mutual funds or individual stocks all of the investment risk in a properly structured indexed annuity remains with the issuing insurer and not the annuitant. The performance associated with indexed annuities is easily communicated and understood while the potential downside is often limited. Further, doesn't our current legal system provide individuals an opportunity to have most of these issues addressed. I would like to think that the SEC would acknowledge that simply classifying these products as securities would not make improper sales recommendations go away.

The inadequate disclosure of possible product shortcomings is best addressed by the competition between issuing insurers and the current regulatory structure. Individual states can currently restrict their approval of those indexed annuity products that they feel are inappropriate. My professional organization, NAIFA is also working with the NAIC and state insurance commissioners to adopt and enforce 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 annuities so that inappropriate indexed annuity products would be prevented from reaching the marketplace.

For these reasons, I would urge the SEC to withdraw the proposed rule. Thank you for your consideration of my views.

William S. Ruch, CLU