Subject: File No. S7-14-08
From: Joseph Hamel

September 2, 2008

To the SEC,

I would ask that you reconsider making Fixed Index Annuities (FIA's) a security. I believe it would not be in the best interest of the consumers as well as the industry.

FIA's are fixed annuities that, like traditional declared rate fixed annuities, guarantee a minimum intereset crediting rate and provide the opportunity to earn interested credits in excess of that guarantee. With a traditional fixed annuity, the crediting of exces sinterest depends upon the performance of the company's overall investment portfolio. Similarly, an FIA provides the opportunity for excess interest credits based upon the measurement of an external stock or baond market index. While both products expose the consumer to fluctuating levels of annual excess interest credits, in both cases the consumer has no risk of loss or premium or prior credited interest (unless the policy is surrendered durnig the surrender period in which case a surrender charge may apply). The FIA offers the consumer a strong minimum guarantee backed by the insurance company along with the opportunity to earn excess interest that is hopefully higher thatn traditional principal-protection products.

Both the design and sale of annuities are highly regulated by state insuarnce dept's as are the companies who manufacture and sell them. State insurance regulations cover, among other things, suitability of insurance agent recommendations regarding annuities, annuity disclosure and advertising, agent liscencing and training, unfair trade practices including misrepresentation of product terms and conditions, and enforcement actions and penalties of noncompliance with sales practices reuirements. In addition, guaranteed minimum values for annuities are regulated thru the Standard Nonforfeiture Law and are applicable to all fixed annuities.

The securities regulation will add little benefit to the consumer protection. Suitability reviews required of brokers under FIMRA rules would not add any meaningful protections over and above what is already being done. The extra costs associated with brokerage firm compliance would make the FIA's less competitive and could possibly remove them as a viable possible vehicle to help people planning for retirement or already in retirement. This would hurt the consumer in my opinion.

The guarantees offered by FIA's offer consumers significant protection against investment risk. The DJIA has suffered a decline this year in excess of 20% from its Oct 2007 record, yet a FIA purchaser will not lose any principal due to such market performance, unlike a consumer of an equity security or a stock mutual fund, or a variable annuity.

Thank you for your consideration.