July 24, 2008
This proposed rule will truly hurt consumers than help. Index annuities are an important part of for the marketplace for independant producers as well as policyholders that own such policies. In todays volitale market where the average loss in any variable product year to date is 20% FIA are a vital part to individuals retirement to conserve whatever principle they might have with moderate growth, a guaranteed rate of return without any losses of market risk. If market risk was evident than where you could lose your gains that you made or principle (with the exception of surrender charges) than it would most certainly be regulated by sec. Such as mutual funds especially b and c shares that carry a deferred sales charge as well as no guaranteed minimum interest rate to where you can lose principle, variable annuities, stocks etc. All these products with the exception of FIA are exposed to market risk with downside potential. The sec does not need to regulate FIA due to these reasons and especially with the market in these turbulent times insurance companies keep a very close watch on agents that sell these products and do everything in their power to comply with ethical conduct.