Visit on FacebookA Florida Life Insurance Decision Is Made: Part II
Miss the first part? Click to catch up on this article about Florida indexed annuities!
An attempt was made by American Equity Investment Life Insurance to separate indexed annuities from securities in 2009, when they sued the SEC. As a result, Rule 501A — which would give the SEC permission to classify Florida indexed annuities as securities in 2011 — was overturned. This Rule 501A would have affected annuities sold in all 50 states. Now, the federal appeals court vetoed Rule 151A, stating that “the SEC failed to properly conside
r the effect of the rule upon efficiency, competition, and capital formation.” As for Wasserman, he is relieved.
The article went on to say that “There are indications that the U.S. Senate will this week approve the financial services bill, which contains an amendment to solidify the notion that state insurance regulators, rather than the SEC, should oversee indexed annuities. State insurers have always regulated these annuities.”
Now we’d like to know: what is your take on this decision?