Subject: File No. S7-14-08
From: Charles M Hart
Affiliation: Principal, Field Marketing Organization, President CEO

September 2, 2008

Dear Friends,
your proposed rule is positioned to create a disaster in the insurance industry comparable to the disaster of the sinking of the Titanic. Stop and listen to the insuance agents, insurance company executives and legal minds that are telling you how mistaken this proposed rule will be if carried to its conclusion.

Indexed annuities are fixed annuities. They are adequately regulated by state insurance departments and the state regulators are totally capable of protecting the public without interference from the SEC.

We insurance agents do not want to be securities representatives or we would have pursued that avenue. We believe that the guarantees contained in the annuity contract provide all the safety required of policy holders
without the risk that other more speculative investments require. Risky investments should be regulated by the SEC but insurance contracts should not. Insurance policies are not investments as are securities transactions.

The indexed insurance product offers the consumer a strong minimum guarantee backed by the insurance company along with the opportunity to earn excess interest that is hopefully higher than traditional principal-protection products.

In thinking this through I have come to the conclusion that this whole rule has been promoted by securities dealers. Stock brokers are losing billions of dollars from client accounts because clients are opting for safe harbor insurance policies. The only people that will benefit from this disaster that you have proposed are the securities industry providers. They will obviously then be able to take more control of the trillions of dollars that are about to be in motion as the baby boomers retire. There needs to be a clear distinction between what is an insurance policy and what is a security investment. By enacting your rule you create confusion, dramatically change traditional perceptions of insurance and stocks, and negatively impact professional insurance agents.

Please re-think this rule and abandon this strategy to try and make insurance products into securities.

Sincerely,
C. Mitchell Hart
President CEO
Insurance Advocates, Inc.