SEC Adopts Rule 151A

KANSAS CITY, Mo. (Dec. 17, 2008) —The National Association of Insurance Commissioners (NAIC) expressed disappointment with the U.S.

Securities and Exchange Commission’s (SEC) adoption of Rule 151A today.

The move challenges state insurance regulatory oversight.

"We are extremely disappointed by today's SEC decision," said NAIC Vice President and Iowa Insurance Commissioner Susan Voss. "State insurance commissioners have taken active steps to protect consumers of equity-indexed annuities — and will continue to do so."

Equity-indexed annuities, as a form of fixed annuities, are currently regulated by state insurance departments. State laws subject the products, the companies and producers selling these products to state insurance regulatory oversight. With adoption of the proposed rule, it is anticipated the SEC could begin regulating indexed annuity products as securities after a two-year transition period.

"We are very dismayed the SEC chose to ignore thousands of comment letters opposing this rule," Voss said. "As insurance products, equity-indexed annuities are subject to extensive and ongoing regulatory initiatives taken by insurance regulators and numerous state insurance laws. The states have a demonstrated record of consumer protection, and we do not believe this rule is in the best interest of insurance consumers."

About the NAIC

Headquartered in Kansas City, Mo., the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit www.naic.org/press_home.htm.