Subject: File No. S7-14-08
From: Gary A Gahan, Esq.
Affiliation: NAIFA

September 2, 2008

Gentlemen I have been involved in the insurance industry for over thirty years and been through many product innovations with life insurance, annuities, long term care insurance as well as health insurance. ALL of these product innovations have been through the grindstone of each and every state insurance jurisdiction before they were allowed to be sold in those states. Some states in fact perhaps had the carriers add some particular verbage to a particular contract to bring it in compliance with that state's regulations. Life insurance and annuities with the inherent GUARANTEES have not had to come under the jurisdiction of another layer of control and beaurocracy. Why are products called E.I.A. which carry the names of Excess Interest Annuity or Indexed Annuity contracts being considered to be brought under the control of FINRA and the SEC when in fact they are GUARANTEED products? These products have brought annuities into the 21st century for the consumer and are suitable as a LONG TERM retirement vehicle as they are designed to be with NO risk to the consumer. I find that the insurance industry has taken great strides to create and follow suitability standards within the insurance industry to be sure that these types of FIXED GUARANTEED INSURANCE products fit a consumer's best interest. Adding another level of beaurocractic control over these types of products will add MORE expense to the consumer in the end therefore reducing the expected INTEREST credit gains over time that might be obtainable. These lost gains will serve of NO benefit financially to the insurance company nor the consumer. The old adage is "if it is not broken, do not fix it"