You are here:HomeIssuesProtecting State Insurance Regulation 2009PIA Supports Bipartisan Bill to Reverse SEC Decision on Annuities

PIA Supports Bipartisan Bill to Reverse SEC Decision on Annuities

A bipartisan bill introduced in Congress would reverse a December U.S. Securities and Exchange Commission (SEC) decision to regulate equity-indexed annuities as securities. The Indexed...
June 17, 2009

A bipartisan bill introduced in Congress would reverse a December U.S. Securities and Exchange Commission (SEC) decision to regulate equity-indexed annuities as securities. The Indexed Annuities and Insurance Products Classification Act of 2009 (H.R. 2733) affirms that the jurisdiction for regulating life insurance and annuities is state regulators.

The bill by Reps. Gregory Meeks (D-N.Y.) and Tom Price (R-Ga.) was applauded by the National Association of Insurance Commissioners (NAIC), which is suing to block the designation switch in federal court.

Jim Poolman, a spokesman for the Coalition for Indexed Products and former North Dakota insurance commissioner, says the SEC has chosen to regulate indexed annuities at a time when the SEC has other pressing priorities. "It is unfortunate that the SEC seeks to duplicate state efforts to regulate indexed products when at the same time it has come under heavy criticism for failing to adequately meet its core mandate of overseeing the securities industry," Poolman says.

What It Means to Agents:  PIA supports H.R. 2733. PIA National's policy position is that life insurance annuities are insurance products, not securities.  While there may be aspects of variable and indexed annuities that have security instrument-like aspects, at their core they are insurance products that need to be licensed, reserved and overseen as what they are, insurance products.