November 13, 2008

Subject: Indexed Annuities s7-14-08

I am Diane Statham of Texas, a financial advisor with Ameriprise Financial. I support the rule that would allow for SEC oversight of indexed annuity sales in addition to state oversight by insurance commissioners. I hold an MBA and am a CFP and CPA. I hold series 7 and 63 licenses and a Group 1 insurance license and have practiced financial planning for more than 13 years.

One of my clients, Nancy Quarles, a retired school administrator, redeemed more than $100,000 from Ameriprise to buy an indexed annuity. She was convinced that she would get a 10% bonus by buying the annuity and annual returns close to the average return for equities over time, about 8 to 9%, with no downside potential. She had gone to a dinner to hear the sales pitch.

I feel the proposed rule is a reasonable and balanced approach to enhancing state enforcement efforts. My experience with Nancy and a friend of mine in California has convinced me that the aging population needs protection from aggressive insurance agents. Consumers are often mislead regarding the benefits of an indexed annuity and liquidity risks, surrender charges, and other suitability factors are not always clearly disclosed or understood. Moreover, not all states have adopted suitability standards for annity sales, nor do most insurance commissioners have adequate enforcement resources available. No doubt some agents misrepresent themselves as offering a single retirement solution when in fact retirement planning is generally a complex planning process.

Diane Statham
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Diane D. Statham
MBA, CPA, CRPC, CFP®
Ameriprise Financial Services, Inc.