Subject: File No. S7-14-08
From: Phillip H Quesenberry

September 5, 2008

I have had a Life, Annuity and Health license since 1971 and a Property-Casualty license since 1973. When Fixed Indexed Annuities came on the scene I was intrigued but did not offer any for sale. The more I studied these products that were offered by various insurance companies the more I realized that these were great products for the consumer. While these products were not for everyone, they do offer guarantees, flexibility, tax deferral and probate avoidance. There is even a minimum guaranteed interest rate. If kept to term, there are no surrender charges but my clients are acquiring these products not to surrender them early but for the long term for the guarantees, the possibility of a higher rate, the security and the payout options. They also do not want to risk their principal and earnings which securities cannot guarantee. The consumer is protected from the down side while securities do not do this. My clients have to complete a suitability form to be sure the product is right for them. As I said before, Fixed Indexed Annuities are not for everyone.

The recent downturn in the stock market shows the value of these products for the consumer. If the SEC is for the consumer, then why is it trying to restrict the consumer's choices by restricting who can sell these products? Does the SEC believe that broker-dealers know better what their agents should sell and what is best for the consumer? I suspect that the range of choice will vanish. The fear of abuses may be driving the decision but I do not believe the SEC can regulate an insurance product better than the state insurance departments. I know that there are abuses in the marketing of all financial products including the ones that are regulated by the SEC. I feel that the SEC is trying to intrude on the power of the states to regulate insurance and to change an insurance product (fixed indexed annuity) into a security.

The SEC appears to be trying to rush this proposal through since the comment window is so narrow. A proposal of this magnitude shoud not be rushed or adopted hastily. Chairman Cox and the SEC should extend the period for comment.