Subject: File No. S7-14-08
From: Kenneth B. Brunetta
Affiliation: President - NIMC

September 4, 2008

Proposed Rule 151A fails to address the issue it attempts to regulate. The design of a FIA does not create consumer risk related to crediting strategies. The consern should be on general Fixed Annuity design.

The problem with SOME FIA's is that the long and high surrender penalties, coupled with un-vested bonuses and lack of liquidity create a negative consumer environment. This is pushed forward by unethical insurers and commission driven agents. These issues should be addressed individually based on the product filing within a state, not bundled together as a problem product group.