NAFA Develops Response To SEC Proposal

If commissioners vote to adopt the regulations, carriers would have at least 12 months to comply, and "the adopted rule may be challenged via the judicial system," NAFA says.

NAFA supports the goals of protecting consumers and enforcing fixed annuity suitability standards, but it also supports existing efforts by insurers and state insurance regulators to enforce suitability and disclosure standards, prosecute fraud, and take other steps to achieve those goals, the group says.

The NAFA board will be working to develop a formal response to the SEC proposal, ramp up a media campaign to promote the value of fixed annuities, and enlist member insurers in communications, lobbying and legal efforts, the group says.

"The value of the fixed indexed annuity – now more than ever in these turbulent economic times – is self-evident.," NAFA says in the notice.

"With the uncertainty of today's economic outlook – the mortgage crisis, gas prices, auction-rate securities and stock market instability – selling the guaranteed insurance of fixed annuities could not be more important to your customers, clients, family and friends," NAFA says.