Subject: File No. S7-14-08
From: Rex D Hill

August 9, 2008

Your proposed regulation to classify indexed annuities as a security is not necessary and will only serve to cost taxpayers. You are also trying to take over a fixed product which is and should always be the responsibility of each specific state D.O.I.

I am opposed to this regulation and would hope you concentrate on regulating that of which you have in your jurisdiction at the present time. Incidentally, you are doing a poor job at this also. Case in point you continue to allow companies selling variable universal life policies to project them at 12%. When are you going to stop this and make companies project V.U.L's on their past performance history with the specific company? Clean up your own house before you attempt to take on other responsibilities.

If you succeed in your quest to regulate EIA's you will place an unbelievable number of agents, home office employees as well as state employees in an unemployed position.

THIS REGULATION IS NOT NECESSARY.