Rita A Kerber LUTCF
August 27, 2008
Florence Harmon
Acting Secretary
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-0609
Florence Harmon:
Dear Ms. Harmon,
As a licensed insurance professional and member of the National Association of Insurance and Financial Advisors, NAIFA, I wirte to you today to respectfully request that you withdraw proposed Rule 151.
Rule 151 , which would classify indexed annuities as securities, concerns me, in that it would not only be limited to indexed annuities, but eventually include other annuity and insurance products as well.
I do belive in the regulation of our business and practices, and am firm in my opinion that those who engage in and promote unsuitable and misleading sales practices should be aggressively prosecuted and subjet to meaningful sanctions. However, concerns about suitability, disclosure, and marketing methods are not the relevant criteria for determining whether a financial product is or is not a security such as mutual funds or individual stocks which are subject to market risk. Indexed annuities are insurance products sold by insurance companies and backed by insurance companies, and should be treated as such. The State Insurance Regulatory Commission is the appropriate means for addressing concerns raised by the SEC.
NAIFA's recommendation, that a state regulatory body be designated to develop standards for indexed annuity products and practices would be an excellent means to provide standards and protection from inapporpritate products reaching the marketplace.
It is for these reasons that I urge the SEC to withdraw the proposed rule.
Thank you for your time and consideration in this matter.
Sincerely,
Rita A Kerber, LUTCF