FOR IMMEDIATE RELEASE

INSURANCE REGULATORS COMMEND LEGISLATORS FOR OPPOSING SEC RULE 151A
Proposed Rule Would Pre-empt State Oversight of Indexed Annuities

KANSAS CITY, Mo. (Nov. 25, 2008) - The National Association of Insurance Commissioners (NAIC) commends the National Conference of Insurance Legislators (NCOIL) for adopting a resolution in opposition to the U.S. Securities and Exchange Commission's (SEC) proposed Rule 151A.

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 products - including indexed annuities - are subject to myriad state insurance laws," Praeger said. "We have a strong record of consumer protection, and we do not believe this rule would be in the best interest of insurance consumers."

Click HERE to view the full text of the NAIC's letter to the SEC.

About the NAIC

Formed in 1871, 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 has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City.

The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

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