September 3, 2008
I am a licensed insurance agent in the state of California. My livelihood could be greatly affected this rule. The sale of annuities and insurance in general is highly regulated by state insurance departments and they also regulate the companies that offer them for sale. The client who buys a fixed annuity is protected against loss and will not lose any of his/her principle. An indexed annunity provides the opportunity to achieve stock market gains and the guaranty that the client will not experience a stock market loss. It is guaranteed that they, in fact, will not lose their principle or their gains. I do not see how securities regulation will add to the consumer protection since we already have to disclose everything to the consumer. We also have suitability regulations in place that must be adhered to when selling annuities. Please extend the comment period as I appose this unnecessary rule.
Thank you,
Wallace R. Moore