October 14, 2008
It is my belief that EIA's should not be regulated by the SEC. This would actually open the door for the SEC to regulate all fixed products and would eliminate the need for state insurance bureaus.
There has been a few unscrupolous agents that have not disclosed all the terms of the EIA's to their prospective clients, but I feel as if they are in the minority. Most agents are very professional and take the time to explain the products to the client. The ones that don't aren't in this business very long.
This rule would have a huge effect on all agents and how they run their practices, and would have an effect on the insurance companies and how they design their products. I actually think that this would be detrimental for the consumer in that there could become very little delienation between fixed products and securities, thus causing more confusion for the consumer.
There have been changes over the years in several areas that have removed authority from the states and have shifted that authority to the federal government. This is a far cry from the Republic our forefathers had envisioned and is moving more towards socialism.