Harkin, Other Dems Back Indexed Annuity Amendment
May 10, 2010 by Allison Bell
- By ALLISON BELL
Sen. Thomas Harkin has offered an amendment to S. 3217, the Restoring Financial Stability Act bill, that would give states and territories explicit authority to regulate indexed annuities.
The amendment, S.A. 3920, would define indexed annuities as insurance products and nullify Rule 151A, an effort by the U.S. Securities and Exchange Commission to classify indexed annuities as securities and put regulation of the products in the hands of securities regulators.
“Rule 151A promulgated by the Securities and Exchange Commission and entitled ‘Indexed Annuities and Certain Other Insurance Contracts,’…shall have no force or effect,’” according to the text of the amendment.
Harkin, D-Iowa, represents a state that is home to a number of large indexed annuity issuers.
The initial amendment cosponsors are Sens. Charles Grassley, R-Iowa; Earl Benjamin Nelson, D-Neb.; Michael Johanns, R-Neb.; and Patrick Leahy, D-Vt.