NAIC Blasts SEC for Passage of Controversial Rule

Kansas City, Mo. — The National Association of Insurance Commissioners (NAIC) is expressing disappointment with the U.S. Securities and Exchange Commission’s (SEC) adoption of Rule 151A.

The rule, which passed by a vote of 4-1, subjects indexed annuities to SEC oversight, a move NAIC says challenges state insurance regulatory oversight.

"We are extremely disappointed by the SEC decision," says NAIC VP 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."

Rule 151A elicited so much controversy when it was introduced in June that a public comment period had to be extended.

"We are very dismayed the SEC chose to ignore thousands of comment letters opposing this rule," Voss says. "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."

Source: National Association of Insurance Commissioners