July 16, 2008
There is no market risk to fixed index annuities, plus a guaranteed rate of return. Principal and interest are guranteed by the insurance company. Clients premiums are not directly invested into market. Many agents have decided not to have a Series 6 license for one reason or the other. First of all, SEC oversight would eliminate index annuities as we know them. They truly serve the public and by eliminating agents without series 6, it would not be beneficial to the public. When Prudential went public, many agents were eliminated. Prudential does not have enough agents to service the great number of policyholders. This would have the same result. Agents who sold the index annuity contract without a series 6 would be unable to service their clients. There is simply no reason for the SEC to have oversight on these annuities. They are already under the supervision of the Sates.