July 13, 2008
The old adage "if the wheel is not broken" apply effectively in this case, that is indexed annuities and certain other insurance contracts are just that - insurance products, not public or private securities products. So why change the current regulatory body from State to SEC?
It really will not better serve the public interests. The State regulatory in the past has effectively monitor and control the oversight of indexed annuities and certain other insurance contract in the public interests.
This movement only serves the Brokers Dealers interests, that is to put an constraint on the flow of funds from the Securities market to the Insurance Companies. Where as the Broker Dealers are seeing a drain in revenue, when the consumers/investors are seeking to put their funds in a safer and guarantee position.
Competition between the Securities market and Insurance market is very healthy for the public, it gives the investor/insured consumer viable product selection.
Therefore, to continue serving the public best interests, the State Regulators should continue oversight of indexed annuities and certain other insurance contract.