Subject: File No. S7-14-08
From: Randal D. Harteau
Affiliation: Life Insurance Sales Agent

July 11, 2008

I am strongly protesting the SEC's ruling, S7-14-08. This is an attempt by the SEC to control a non securities insurance contract for the purpose of expanding their own power and increase their hold on the market place, forcing the public to purchase index annuities from licesened brokers exclusively.

I have been selling indexed annuities for seven years and have not seen any evidence that licensed security agents do a better job than licensed insurance agents. Individual agents have no control over the performance of the various indexies. Index annuities offer a fixed interest bucket, as well as investment buckets for at least one index. The investor is being offered a choice of guaranteed annual growth or a conservative possible enhanced return. However, no matter what the market does, the investor does not loose principal or attained gain. This is not the case with the most common securities, those being individual stocks, mutual funds and variable life insurance contracts.

I also see this as an attempt by the SEC to show their licensed agents that it is protecting them, at the expense of non security licensed agents, and that this change will funnel business to them by greatly cutting competition.

State Insurance Offices are more than capable in reviewing life insurance contracts and allowing the sales of these contracts in their respective states. More importantly, the State authorities are in a better position to react in a timely manner and take corrective action when abuses do occur.

This action is a threat to my ability to earn a living. I feel that the SEC's arguements are specious and disguise this agency's true motives of power grabbing and limiting competition for the benefit of their own members.

I will join a class action suit if one is brought forward.