November 17, 2008
I protest that indexed annuities could be considered a security. The current market conditions prove that a client
who is in an indexed annuity cannot lose his/her policy value. This is surely a fixed product and NOT a security. As a tax professional who has over 600 tax clients, it is clear that the distinction between the two is certainly the ups and downs of market conditions and the certainty that indexed annuities do not have the same fluctuations. The mere likeness that indexed annuities rise in value when market conditions are favorable is not reason enough to lump these products as a security and force licensed insurance agents to become a securities broker. It would certainly become more costly to the ultimate consumer if the SEC were to become involved. My main concern is for my average incomed clients who would ultimately pay for the securities and exchange commission to regulate these products. As it stands right now, insurance companies do an amazing job of qualifying individuals for annuities.