NAIC To Plan 151A Strategy 

The National Association of Insurance Commissioners government relations leadership council will shape NAIC efforts to respond to the new U.S. Securities Exchange indexed annuity regulations.

Council members will discuss the NAIC’s approach to the issue at an upcoming meeting, according to Susan Voss, Iowa insurance commissioner and vice president of the NAIC, Kansas City, Mo.

The SEC recently approved Rule 151A, which will define many indexed annuities as securities starting Jan. 12, 2011.

During the comment period on the rule, members of Congress expressed disapproval of the rule, and approaching Congress could be one option to consider, Voss says. At least 8 U.S. senators and 26 Congressmen submitted comments on the regulation, according to a review of an SEC comment database.

The NAIC also could ask the Obama administration to reconsider the regulation, Voss says.

• • 1/24/2009 11:42:50 AM
  • dspinner@charter.net
  • 151A
  • the intent of the Act (1933) was to shield consumers from predatory marketeers and unnecessary risk. The NAIC has in place, rules and administative and legal responses to sale and product abuses, already in place. The covert act of the SEC was totally irresponsible, and overstepped its authority by enacting 151A. First, the Act clearly states that annuities are insurance products. Second, annuities provide a constant by asuring the policyholder a positive growth pattern which is guaranteed. Third, EIA and/or FIA's offer thesame guaranteede minimum growth pattern with an additional prospect of more growth by selecting an Index on top of the fixed portion of the annuity. It guarantees that the consumer will on participate in the growth (upward swing of the Index) but never participate in the decrease (downward movement of the Index). That removes any risk to the consumer. Lastly, it is the insurance company, not the consumer, that assumes the risk. It seems to me that this move by Chairman Cox and his posse saw a chance to embellish the coffers of the SEC. Certainly, it didn't take into consideration the jurisdiction of the State Insurance Commissioners and their departments nor their concerted efforts to regulate any form of abuses or their stepped up suitability regulations. This irresponsible action will force many companies to abandon a financial option for their customers as well as costing agents, agencies, and companies a lot of money and headaches. It will give B - D's unprecidented authority over products that they have little knowledge in and NO experience in. This is a matter for the Congress to debate. David L Spinner, MA, CEP, CLTC dspiner@charter.net P.S. I will be happy to testify in this and/or related matters/
• • 5/18/2009 10:58:48 PM
  • Gene Eldridge
  • SEC rule 151-A
  • Never mind that all legal decisions/opinions on this subject have clearly defined what a Fixed Annuity is and that is squarely in the regulatory pervue of the states, and nevermind that it was the brain child of one of the most incompetent SEC commissioners, and nevermind that is bringing us 360o back to the regulatory chaos that existed pre-glass/steagall, and nevermind that FIA's entirely fit the legal definition of an insurance-only product, and nevermind that it was on SEC Mary Shapiro's watch at NASD that they self-morphed into the over-reaching FINANCIAL INDUSTRY REGULATORY AUTHORITY, and nevermind yada-yada-yada, the state insurance commissioners should speak with one loud voice against this because this federal govt. is on a mission to consolidate power unto itself, & you'll all be on the unemployment line. Those who join the federal movement are no friends of yours or ours.(agents) Comissioners like that twit from minnesota should be "frozen-out" by the rest of you. Think of her as Elliott Spitzer, using the "law" to advance her own agenda, whatever it may be, and doing it with unchecked animosity. This is nothing to do with protecting consumers. SEC has already proven that it is ill-equipped to do that. It's everything to do with power. Give them this without a fight & it will be just the beginning.

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