Subject: File No. S7-14-08
From: Dewayne J Lener

September 7, 2008

Dear SEC Chairman Cox,

I am writing because of proposed rule 151A changes by the SEC which will adversely affect my livelihood and business as a licensed, independent insurance agent in the States of California, Arizona, Texas and Florida.

The securities regulation will add little benefit to consumer protection. Many states have already adopted the NAIC Annuity Disclosure Model Regulation and most, if not all, of the major index annuity carriers have mandated the use of a disclosure statement or certificate describing all important terms and conditions of the annuity contract, including prominent disclosure of surrender charges. Many, if not all, major indexed annuity carriers conduct suitability reviews of all sales in all states. Suitability reviews required of brokers under FINRA rules would not add any meaningful protections over and above what is already being done.

Besides this, both the design and sale of annuities are highly regulated by state insurance departments 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 licensing and training, unfair trade practices including misrepresentation of product terms and conditions, and enforcement actions and penalties for noncompliance with sale practice requirements. In addition, guaranteed minimum values for annuities are regulated through the Standard Non-forfeiture Law and are applicable to all fixed annuities.

With this being stated, the guarantees provided by an indexed annuity offer comsumers significant protection against investment risk. The DJIA has suffered a decline this year in excess of 20% from its October 2007 record, yet a fixed index annuity 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. The annuity interest crediting formula protects the owner against loss due to drops in the index over the crediting period and while the guarantees provided certainly come at a price, this fully disclosed to the purchaser.

For these reasons stated above, I am asking that that you as the SEC Chairman, support the extension of the September 10th, 2008 deadline for comments from a larger section of the countries Congressman, Senators, Insurance Companies, State Insurance Commissioners, Insurance Agents and purchasing public.

Sincerely,

Dewayne J Lener
CA Life Agent License 0F80757