Subject: Equity Indexed Products
Date:    8/29/97 9:34 AM
     
     
I believe that both the annuity and life insurance forms of this product 
should be sold and regulated the same as variable annuities and variable 
life insurance.
     
In addition to the complexity of the products, I believe the average 
consumer perceives them as an opportunity to participate in the equity 
markets. The current bull market may cause consumers ro rush in to 
participate without fully exploring the risks associated with this type 
of product. I believe the rules and regulations that registered 
representatives must abide by, specifically the prospectus delivery 
requirement, would address this area and protect consumers.The SEC and 
NASD are very experienced in monitoring sales practices. Setting up 
another regulatory agency is unnecessary.
     
If purchasers were confused/misinformed about "Vanishing Premium" life 
insurance plans, they'll be very confused about these products when a 
bear market takes over!
     
M. Michael Reilly, CLU, ChFC
Registered Representative 
(securities offered through Locust Street Securities, Des Moines IA)