Subject: File No. S7-14-08
From: Jack E Cole
Affiliation: Harper-Cole Insurance Services

July 11, 2008

Regarding the proposed rule to treat Indexed Annuities as securities and not insurance: Here are my comments and point of view as a consumer and a life insurance agent.

Indexed annuities have been successful because the nature of the product meets the needs of the saving public all of the ups and none of the downs, so to speak.

Indexed annuities are not high-risk investment products where a consumer can lose his or her principal like security investment type products

Indexed annuities offer consumers important protections, namely: (1) the guarantee of premiums paid and (2) guarantee of interest credited

Indexed annuities provide underlying interest guarantees required by state law

There is little difference in the risk to a policyholder for a traditional fixed annuity versus an indexed annuity. Under both forms of annuities, the policyholder is at risk to the insurer's annual interest rate declaration, whether it is an expressed percentage amount or a formula relating to changes in an index.

The sales practices and suitability safeguards needed for index annuities are the same safeguards needed for all life and annuity products.

The proper supervision needed for traditional fixed annuities, indexed annuities, and life insurance can be, and is being, performed according to state insurance department rules.

The results of the SECs proposed rule will not be to benefit savers but to:
1. Reduce the number of agents who can offer a product that is beneficial to many savers

2. Burden indexed annuities with unneeded additional expenses (for filing, regulation, and supervision), the cost which will be borne by savers

3. Damage financially many individuals, small businesses, and smaller insurance companies and

4 Give Broker/Dealers the ability to suppress a viable, valuable, and successful form of retirement savings which has and would continue to provide strong competition to those retirement savings offerings traditionally made by Broker/Dealers.
5. Typically, security brokers and registered reps seldom offer annuities of any type as they are too pressured by their employers to move investment accounts, there by hurting the consumer by not offering a savings plan that can assist in retirement planning.

These are only my opinions and not necessarily the opinions of others.