September 2, 2008
Index Annuities are being promoted as securities by insurance agents here in our area. The clients are not being properly advised as to how these products work and the extreme penalty assessed with these products. They should only be offered by registered representatives holding at least a Series 7 License and at least a Series 63 License. Please place a moratorium on the issuance of these products until this process is completed with the legislation.
We have studied these products in depth. The insurance companies know that when we (Registered Reps) are the only ones allowed to promote these products, that the sales will diminish because of our efforts to provide responsible, transparent, and financially sound products for the clients. Once gone, the insurance companies will raise rates on fixed annuities (which will help clients), decrease surrender penalties (which will help clients), and increase sales of the safer, guaranteed products which is the business they should be in the first place.
Please move swiftly to protect the public from the promotion of these products by anyone other than a Registered Representative.
Thank you,
Sam G Garrard III (Trey)
Vice President and Senior Financial Consultant
Community First Investment Svcs Group
Investment Specialist, VSR