September 2, 2008
the guarantees provided by an indexed annuity offer consumers significant protection againest investment risks.
The DJIA has suffered a decline this year of 20% from Oct. 2007, yet a fixed or indexed annuity purchaser will not lose any principal due such a market performance, unlike a comsumer of an equity security or stock mutual fund or a variable annuity. Even the interest gained is protected, with an indexed annuity.
Both the design and sale of annuities are highly regulated by state insurance depts. as are the insurance companies that sell them.
My livelihood and business as a licenced agent may be greatly impacted by proposed rules recently published by the SEC.
The rule offers no consumer protection not already provided by state insurance regulations.
Gerry Fribourg