September 7, 2008
To Whom It May Concern:
I know your time is valuable, as mine, so I shall make this brief and to the point. I am responding to the current proposal of 151A to make Fixed Index Annuities a security. The reason for this proposal as I understand is the concern of the sales process in the sale of these policies. Though a Fixed Index Annuity (FIA) is a fine savings vehicle (for it protects the consumer from the loss of principle) my statements will not be in regard to the product but instead address registered agents and insurance producers. For it has been my personal experience, that the insurance policies when properly used serve the consumer well, but when selfishness or those with a lack of integrity enter the picture a huge problem occurs hurting the consumer and the industry. It is not my purpose to point a finger at someone but instead to address a far deeper issue that no law or license will ever correct that every profession struggles with.
Whether it is a registered agent or insurance producer in most cases the problem is not the sales process or the policy but instead the person’s integrity and morals who make the sales process and the policy work properly or improperly! Both the registered agent and the insurance producer take a vow to uphold integrity and moral uprightness but again as with ANY profession these standards are not honored by all, making any profession more difficult to maintain and win the trust of the consumer. So how do we fix the problem? Continue to enforce current laws and requirements that are in place with both the SEC and Insurance Commissioners. Strongly encourage consumers to report to proper authorities misleading sales practices to have those lacking integrity removed from practice. Unfortunately most consumers refuse to do so because of confrontation.
Just as the SEC, insurance companies as a whole have taken swift immediate action to protect the consumer, implementing suitability (like securities) that should greatly reduce the mishandling of the consumer’s savings AND protect the sales process, but will never completely correct the lack of integrity and morals of a producer or registered agent. PLEASE withdraw Rule 151A and allow time for the suitability standards that have been implemented to take affect! Time will prove that the problem has been properly addressed and that the consumer is better protected today then a year ago.
Sincerely,
Darrell W. Turney
License Insurance Producer