August 27, 2008
I am both a licensed insurance professional as well as a series 7, registered representative. Let me first, emphatically state that I oppose any marketing of any product that is unsuitable with a customer’s stated objective.
I also believe that in many cases the development of indexed annuities by several insurance carriers was an attempt to give their producers a “more even” playing field with registered representatives without the commitment to education or compliance.
However, the true real value in this insurance product is the crediting of interest to the annuity holder. There are many members of the public that are uncomfortable with workings of the equity market place. In addition there are long memories of both firms and registered representatives that have not always acted in the best interest of the public. Yet those same individuals are not comfortable with being credit a fixed interest rate that may not keep up with inflation or the economy in general.
The ability of our industry to give professionals a product that credits interest outside a board rooms dictate, or stresses a buyer with market fluctuation AND gives guarantees is incredibly valuable. I request that the SEC not muddy the waters by putting governmental control over a non-equity product but allow the state departments of insurance and the professionalism of life insurance agents and the carriers they represent police the industries few who would violate the public trust.
Thank you for your consideration.
James L. Chrisler
Partner, MVP Financial Services, Inc.
Geneva, Il