Subject: File No. S7-14-08
From: Tim Barton, ChFC

September 10, 2008

I oppose this regulation because fixed index annuities are clearly insurance products.

State regulators do a good job regulating sales practices, agent training and enforcing insurance company reserve requirements. Unlike a variable annuity no client funds are invested in the equity market. The index performances are used only to determine the interest rate to be paid on funds in the fixed annuity. Much like treasury rates are used as guidelines to set fixed interest rate annuity contracts.

Because fixed index annuities are guaranteed insurance products we in the insurance business refer to these annuity monies as premium not as investments or deposits.

I oppose this federal take over of state insurance regulation. State insurance commissioners should continue controlling reserves, sales practices and education requirements as they deem practical in their respective states.