November 13, 2008
Subject: file S7-14-08 - I support this rule
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My name is Suzanne Krasna, CFP and a member of the Financial Planning Association in Walnut Creek California 94596
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I heartily support this rule.
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I have been licensed as a Life, Health, Annuity agent in the State of California since 1982 and I have been a Certified Financial Planner since 1990 –
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I have personally trained other insurance agents on all aspects of fixed annuities – I have observed that Index Annuities have too many ‘moving parts’ and the most knowledgeable agents are able to dissect and explain how they work. It is amazing to me that the insurance companies who issue these policies cannot answer questions related to understanding the wording in their policy contracts.
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If the insurance company who issues the policy cannot make it understandable and clear in the contract, how can anyone expect the consumer to understand what they are buying.
- If the agent does not understand the product they sell, how can they possibly explain it clearly to the consumer.
- It’s important that an agent have the same level of responsibility to the client as those of us who are required to and do – place the interest of the clients first.
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Through the years I have seen awful situations that people were forced into and misguided by agents selling such products as Index Annuities. Old clients seem to be the largest victims of such insurance agents misrepresenting what Index Annuities do and how they really work. The client is guided to place all their money into these products and think they have invested in the ‘market’.
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Please support this bill – It protects people and their money. People cannot afford to lose
- The proposed bill / Rule---
- is a reasonable and balanced approach to enhancing state enforcement efforts
- can protect the vulnerable aging population who desperately need additional protection from aggressive sales agents or agents who are not qualified or educated in what they are selling.
- consumers are often mislead regarding the benefits of an indexed annuity
- liquidity risks, surrender charges, and other suitability factors are not always clearly disclosed or understood
- not all states have adopted suitability standards for annuity sales, nor do most insurance commissioners have adequate enforcement resources available
- some agents misrepresent themselves as offering a single retirement solution when in fact retirement planning is generally a complex planning process
Suzanne Krasna, CFP
Registered Investment Advisor
Registered Representative, Investment Advisory Representative
FSC SECURITIES CORPORATION
Securities offered through FSC SECURITIES CORPORATION