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Life Health > Annuities

Quiz question: When does Rule 151A take effect?

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The question was: Unless reversed by the courts, most equity indexed annuities will be subject to the Security and Exchange Commission’s Rule 151A starting on which date?
a) January 12, 2011
a) February 1, 2011
a) March 30, 2011
a) June 30, 2011
a) July 1, 2011

The answer is: a), Rule 151A, which calls for Securities and Exchange Commission regulation of these products, is slated to take effect on January 12, 2011, according to a May 4, 2009 National Underwriter article by Arthur D. Postal. However, on May 8, 2009, the U.S. Court of Appeals for the D.C. Circuit heard oral arguments on a suit filed by indexed annuity underwriters and state regulators, seeking to forestall Rule 151A. A 3-judge panel of the Appeal Courts will review the final SEC Rule, which was approved on December 17, 2008.