New York
In spite of the market turmoil and questions about regulation of indexed annuities, this is a good time to sell fixed annuity products, according to Wendy Carlson.
Carlson, president of American Equity Investment Life Holding Company, West Des Moines, Iowa, delivered that assessment here earlier this week at a conference organized by the New York Society of Securities Analysts, New York.
American Equity sells indexed annuities along with other indexed products and other types of annuities.
The company is looking at a number of options in the wake of the effort by the U.S. Securities and Exchange Commission to create Rule 151A, Carlson said.
Rule 151A would classify most indexed annuities as securities and put them under the jurisdiction of the SEC. The rule would not change the tax-deferred nature of indexed annuities, but it would require the agents who sell the annuities to be licensed to sell securities.
American Equity is part of the Coalition for Indexed Products, Washington, a group that has filed suit over 151A. A court recently agreed to hear the case on an expedited basis, and American Equity is hoping that the review will be completed by the third quarter, Carlson said.
American Equity sells through 45,000 independent insurance agents. Many are registered, but many are not, Carlson said.
But the new rule is not scheduled to take effect until Jan. 1, 2011, and the coalition still could win the lawsuit, Carlson said.
