Subject: File No. S7-14-08
From: Courtney A. Juhl

August 15, 2008

I am writing to oppose the SECs proposed Rule 151A. I believe, both personally and professionally, that this proposal, if adopted, would be devastating to not only the insurance industry, but to many thousands of consumers.

Fixed index annuities (FIAs) offer clients a guarantee to never earn less than their contractually guaranteed minimum return. They offer tax deferral and a safe place for retirement savings, particularly in this period of economic uncertainty. While many individuals suffered losses during the recent events in the stock market, those consumers with FIAs have not lost one dollar.
Proposed Rule 151A is ill-conceived. Many securities lawyers find the SEC proposal to be completely unsupported by judicial precedents on what constitutes an annuity exempt from securities laws. Additionally, it defies common sense that a product which has virtually no market-related downside risk should be considered a security in the same manner as mutual funds or variable products. The SEC appears also to be rushing into this adoption, and with virtually no forewarning. A proposal with such profound effects on the insurance industry and the general public cannot be rushed or adopted hastily. There needs to be sufficient time for reviewing all implications and ramifications of this proposal, and because of this I urge you, at a minimum, to slow down this adoption process.

In a recent article from National Underwriter written by Jack Marrion, he estimated that proposal 151A could result in an estimated loss of $852 million to insurance industry distribution. In an already weak economy, this proposal is not in the best interest of the industry, the SEC, the economyand most importantly, the consumers.

Thank you for your attention to this matter.

Sincerely,
Courtney Juhl