January 16, 2009

SEC Sued Over Decision to Regulate EIAs as Securities

Coalition for Indexed Products say commission overstepped its authority

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The Coalition for Indexed Products filed suit on January 16 in a Federal appeals court against the Securities and Exchange Commission over its December 17 decision to regulate equity indexed annuities as securities rather than insurance products. The coalition, a group of eight major insurance companies that issue fixed index annuities, including Allianz Life Insurance Co. of North America, charges in the suit that the SEC overstepped its authority in its ruling. That was the expressed position of SEC Commissioner Troy Parades when he cast the lone dissenting vote on December 17.

For further information on the suit and the ruling, please click here to view a news story from our sister company, National Underwriter

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