Subject: File No. S7-14-08
From: Richard J. Durkee
Affiliation: LUTCF

July 29, 2008

The issue at hand seems to be that the SEC has determined that licensed life accident and health agents are not governed properly by the states they reside or are licensed in. It would seem to me that a survey of state insurance departments complaints registry would provide an accurate analysis of if this is truly a problem that is "running rampant" in the fixed product areana of sales practices. A question I might pose would be how does the actual total number of complaints compare when broken down into fixed product sales versus variable product sales complaints? Who is this proposal really good for? The agent? The consumer? or another government regulation body that wants to protect the consumer when the consumer is already protected by the insurance company that sells the fixed products? What Insurance company in thier right mind would want to set themselves up for a class action lawsuit after seeing all of the lawsuits of the 90's? The insurance companies do not want to be litigated. It is obvious by the disclosures and suitability reviews they provide for the agents to complete with potential clients. There are always some bad apples in every insurance sales market for all types of product offerings...Is the SEC going to regulate the health insurance markets because a long term care plan pays a cash riembursement? Are you going to regulate a bank because its salesperson advised a client to take money out of the market to put into CD's? You should regulate the sale of Securities, it's in your name... Securities and Exchange Commission.