Iowa insurance Commissioner Susan Voss said she had a “good meeting” with Securities and Exchange Commission Chairman Cristopher Cox, on the subject of indexed annuities. But she hasn’t indicated whether Cox showed any flexibility on the issue.

In June, the SEC released a proposal calling for it to take control over indexed annuity regulation, by redefining indexed annuities as securities instead of insurance products. Voss says she continues to be a firm supporter of treating indexed annuities as insurance products. “Securities products put the risk on the purchaser,” Voss told the National Underwriter. “Indexed annuities put the risk on the insurance company to provide a guarantee for the consumer.” She said securities regulators often contend that the fact that a portion of indexed annuity income is tied to the performance of an investment index is a reason to give them jurisdiction over the annuities. “That’s like saying that, if your ham sandwich contains a slice of lettuce, it’s a salad,” Voss says.

Voss says she hopes that she and other members of the National Association of Insurance Commissioners will meet with Cox during the NAIC fall meeting in September. Voss is Secretary-Treasurer of the NAIC.

August 5, 2008