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SEC Rule 151A is the culmination of a decision by the Securities Exchange Commission to reclassify indexed annuities as securities. Effective January 12, 2011 annuity issuers will be required to file their products with the SEC. Solicitation will have to be by prospectus. Currently such products are under the jurisdiction of state life insurance regulators.

S 1389 is a Senate bill introduced by Ben Nelson D-Nebraska, a companion to House bill H.R. 2733 introduced by Gregory Meeks D-New York and Tom Price R-Georgia. Both bills seek to reverse the SEC decision to regulate indexed annuities as securities.

In addition to the two bills, the National Association of Insurance Commissioners has sued the SEC to block its action on indexed annuities (see American Equity Investment Life Insurance Company, et al, vs. SEC, No. 09-1021  U.S. Court of Appeals for the D.C. Circuit)  The  suit contends that the SEC action ?constitutes injury per se? to each state insurance regulator.

Will the efforts Nelson, Meeks, Price and the NAIC do THIS to SEC Rule 151A?

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