The National Association of Insurance Commissioners (NAIC) commends the National Conference of Insurance Legislators (NCOIL) for adopting a resolution in opposition to a U.S. Securities and Exchange Commission’s (SEC) proposed rule that would preempt state regulation of indexed annuities. Equity-indexed annuities, as a form of fixed annuities, are currently regulated by state insurance departments. If the SEC adopts the proposed rule, it will begin regulating indexed annuity products as securities.

“This rule is not needed, and we thank our NCOIL colleagues for their acknowledgement and support,” said NAIC President and Kansas Insurance Commissioner Sandy Praeger. “We believe indexed annuities are insurance products — and that they should continue to be regulated as such.” In a recent comment letter to the SEC, the NAIC’s officers outlined the extensive and ongoing regulatory initiatives taken by insurance regulators to oversee the sale of indexed annuities and other annuities.

Insurance Regulators Commend Legislators for Opposing SEC Rule (NAIC 11/25/08)

NAIC Comment Letter to SEC (11/10/08)

December 2, 2008