November 17, 2008

Subject: File no. S7-14-08; Comments on

Dear Sirs:

I am D. Rand Hillier, CFP certificate holder 063233, and member of FPA Puget Sound, member #144003.

I was a captive life insurance agent for 11 years and am now a licensed life insurance agent working through a brokerage in Seattle. I have been a CFP since 1999.

About once a month I see invitations to attend financial planning seminars for seniors in our community, put on by various outfits that are "not selling anything" but just providing "free information" to seniors .

I have attended several of those offered. The presentations are very polished and professionally done but invariably they get around to showing the seniors how equity indexed annuities or equity indexed life insurance can capture significant market potential with no downside risk. They present this product as a panacea, a product that is just right for "you" in almost all circumstances, whether the senior is 55 or 85. They often use historical data to show a hypothetical performance and rarely discuss the participation rates, caps, fees, or other risks. The presentations are usually swift and smooth, providing just enough information to entice someone to sign up for a personal interview and a "review of your financial situation".

The presenters are always insurance agents of one ilk or another and they usually identify themselves as financial advisors, senior certified specialists, retirement specialist, or some other variation of designations but rarely identify themselves as salespersons for, or representatives of an insurance company. In fact , they are usually not direct insurance company representatives, but persons who have acquired an insurance and/or some other license who work for some financial advisory firm such as "ABC Capital Management" or "DEF Financial Advisors" or some other such firm. Their goal is quite obviously to get some hapless senior to sign up for a private interview. I do not know their success rate at getting seniors to sign up for a "financial review", nor do I know their success rate at selling equity indexed life insurance or annuities because I have never signed up for one of their interviews.

In general, the presenters present a positive view with little discussion about the technicalities of the products or the risks/limitations/fees/commissions involved. They do not present themselves as salespersons.

While the equity indexed life insurance and equity indexed annuities may be insurance company products and not technically securities because they don’t involve what we commonly consider securities such as stocks, bonds, or mutual funds, there needs to be some regulations/oversight/disclosure requirements for these products.

V/R,

D. Rand Hillier