November 17, 2008

Subject: [FWD: Rule 151A] s7-14-08

Dear Sir / Ma'am,

I writing to you, to provide my comments on the Security and Exchange Commission's intent to pass RULE 151A, treating Fixed Indexed Annuities (FIA) as securities. As a licensed insurance agent and a securities licensed producer in NM, and several other states, I have sold many securities and insurance related products. FIA's have a guaranteed minimum rate of return, as do Fixed Annuities. FIA's also offer potential increased earnings if product related securities indexes perform well. Like Fixed Annuities, FIA's protect owners from incurring any losses to their principle. This is guaranteed by the claims paying ability of the associated Insurance Company. I simply do not see the logic in making FIA's security products. Consumers are completely protected from loss, just like Fixed Annuities, Certificates of Deposit, Bank Savings and Checking Accounts.

Allowing the SEC "oversight" of these insurance products, in my estimation, is unwarranted. Rule 151A provides duplicative oversight of FIA's, and reduces state authority to manage these products. If Rule 151A passes, it will significantly affect all insurance agents, by forcing each agent to acquire a securities producer license. This will affect insurance agents' ability to sell FIA's to their clients, potentially removing a quality product from their portfolio of options. It will also affect insurance agents' ability to earn income and support their families in these difficult economic times. Lastly, there is an additional burden to insurance agents, where they will have to work through a Broker-Dealer to sell FIA's, which will cost them approximately 15% of a producer's commission. I thank you for your time.

Very Respectfully, CAPT Peter D. Murphy, USN

Peter D. Murphy
Retirement & Estate Planning Specialist
American Prosperity Group