Exchange Commission’s (SEC) Rule 151A under which it will assume
regulation of indexed annuity products as securities in January
2011 continues to mount.
In the latest and potentially the most significant development
the National Association of Fixed Annuities (NAFA) has released a
draft bill that would nullify Rule 151A clarify and confirm the
insurance status of indexed annuities and insurance contracts.
The proposed bill is the work of Congressman
David Meeks and given sufficient backing will be submitted the
House of Representatives.
In the draft Meeks states that Rule 15A
“interferes with state insurance regulation, harms the insurance
industry, reduces competition, restricts consumer choice, creates
unnecessary and excessive regulatory burdens, and diverts
commission [SEC] resources, all of which outweighs any perceived
Throwing its weight behind Meeks, NAFA has
engaged lobbying firm Blank Rome Government Relations to promote
legislative action to overturn Rule 151A. Conceding that its
financial resources are limited, NAFA has launched a campaign to
raise $100,000 to help finance its lobbying campaign.
NAFA’s lobbying efforts complement those of
the Coalition for Indexed Products (CIP), a recently formed body
comprising eight insurance companies including Allianz, Aviva,
Conseco and Old Mutual.
In January the CIP and two independent
marketing organisations filed suit in the US Court of Appeals for
the District of Columbia Circuit to overturn Rule 151A.