Rule 151A

A Federal appeals court recently voided Rule 151A.

Rule 151A would have treated indexed annuities as securities and would therefore have shifted responsibility for regulation of indexed annuities from state departments of insurance to the Securities and Exchange Commission (SEC).

Rule 151A would also have required insurance agents who sell indexed annuities to obtain their securities license--arguably raising the bar for financial advisors who want to sell indexed annuities and more than likely shrinking the pool of distributors.