Subject: S7-14-08

July 2, 2008

In reviewing the proposed SEC rule regarding reclassifying Fixed Indexed Annuities as a securities, I feel this is over reaching on the part of the SEC.

This is one more example on the part of the SEC to enhance its own power in the name of consumer protection.

By definition, an Indexed Annuity is a type of Fixed Annuity. Fixed Annuities are INSURANCE Products which guarantee return of principle. There is No Risk , to principle. Any Interest that “ may” be earned is based upon positive changes in the index performance and the corresponding interest crediting rules associated with the specific index crediting options.

The key word is INTEREST. INTEREST is INTEREST. Any Potential INTEREST earned on positive performance of the index cannot be lost. Just like the Interest earned on CD’s Money Market Accounts and Savings Accounts, Interest earned in the indexed annuity is safe. Index Annuity returns are designated as INTEREST NOT " Return on Investment " this is for a reason. The "potential" gains/ returns in securities are commonly referred to ROI or Return on Investment. Once any Interest has been credited in an Indexed Annuity it cannot be lost; this is dramatically different and unlike the gains or " return of Investments " earned with securities, which ARE not protected and are subject to Loss.

Fixed Indexed Annuities are NOT securities. The SEC regulates Securities. The Insurance Industry and State Insurance Regulatory Department are doing an excellent job of policing the sale and suitability of these products. The SEC has enough problems keeping it’s own house in order and should focus on doing a better job with what they currently oversee rather than trying to extend is reach.

In conclusion it is my opinion this regulation will ultimately and unfairly constrict the availability of indexed annuities to the public . I am against favoring the SEC with oversight of this product classification.

Mr.Pollock