Subject: File No. S7-14-08
From: Matthew R Coleman
Affiliation: Fellow of the Society of Actuaries

December 11, 2008

Honorable Commissioners,

As you consider whether to ratify rule 151A at your next meeting, please consider the following:

1. Many members of congress knowledgeable about this issue have appealed to you to table this rule.

2. The American Academy of Actuaries has given expert testimony concerning the inappropriateness of the proposed rule.

3. The vast majority of respondents to the SEC website (some very eloquently, others less so) are opposed to this rule.

4. The notion of defining indexed annuities - which meet every regulatory test of being traditional annuities - as being not annuities (which is the core action of Rule 151A) violates the obvious intent of Section 3a8 of the Securities Act of 1933.

5. As federal regulators, you have the responsibility to investigate and understand the major financial motives behind Rule 151A. To many observers, the securities industry appears to benefit financially from this decision to the significant detriment of the competing insurance industry and the many seniors who are delighted with their indexed annuities.

6. At this time of financial turmoil, when many retirees have lost vast sums of money from market volatility, indexed annuity holders have lost exactly nothing. This powerful benefit of insurance against market loss is the cornerstone of the indexed annuity value proposition.

7. Anyone familiar with insurance product distribution will confirm that Rule 151A's passage will powerfully restrict seniors access to indexed annuities and the beneficial guarantees and insurance they provide.

8. As you well know, with commissionable financial products both securities and insurance-based, there can be improper sales. The insurance industry, particularly the NAIC and insurance companies, is well aware of this issue and is working hard to respond effectively to it.

9. Many thousands of professional careers, small businesses and the seniors they serve will be powerfully affected by your decision. And finally,

10. Please remember your sacred trust to all the citizens of the United States. You must not look out only for the interests of FINRA and NASAA but those of all the citizens of the United States as you rule next week. We look dependently forward to a wise and just ruling.

Most sincerely,

Matthew Coleman, FSA, MAAA
Managing Principal and Actuary
AnnuityWorks, LLC
7400 College Blvd
Overland Park, KS 66210
(913) 387-1180