November 17, 2008
The proposal is not supported by any empirical evidence that supports the Commissions
claim that widespread abuses in selling the product exist. The Commission cites its concern
over improper sales practices as the primary basis for proposing Rule 151A. Yet, the
Commission provides no study, research findings or statistical information to demonstrate or
suggest that the abuses are endemic or pervasive. 41 states have adopted the NAIC
Suitability Model and the NAIC reports that .1% of all complaints filed with state insurance
departments relate to fixed indexed annuities. Members of the fixed indexed annuity
industry, insurance industry groups such as the ACLI, NAIFA, NAILBA and IMSA, and insurance
regulators deplore fraudulent, misleading or abusive sales practices.