Indexed Annuities Rule 151A Battle
In “NAIC backs bill to reverse SEC’s Rule 151A annuities regulation” by Keith Martin, he states that the National Association of Insurance Commissioners does not agree with the Securities and Exchange Commission’s rule classifying indexed annuities as securities. The article, from IFA web news, says that the NAIC supports the proposed Indexed Annuities and Insurance Products Classifications Act of 2009. Two Representatives brought this Act about to overturn Rule 151A and resolve some issues unclear from the Securities Act of 1933.
The backing from NAIC’s CEO Therese Vaughan represents insurance regulators from the entire United States and its territories. They believe that Rule 151A is needless and that it actually takes away from both the NAIC and the states’ work updating indexed annuities when issues arise. Vaughan said that “Rule 151A ignores the fact that, at their core, indexed annuities are insurance products that guarantee purchasers’ principal and a minimum rate of return.” She and the NAIC think that state regulators should maintain their ability to monitor indexed annuities and that there are many vague points that will hurt consumers’ security.
