Equity Indexed Annuities: Are they the real deal or junk products?

[James]

EIA is a FA, any way you look at it. It is fix with a guarantee FIX rate, once again the debate comes with the "Extra" rate that may materalize or may not. The seperate account comment was on how State DOI generally views to decide if it is Insurance or a Variable/Securities, so the EIA falls under the Insurance side not the Security side and rightly seen that way by all States that I know of or interested in.

I've also noted in many cases complaints from seniors (which I don't know when they recieved "Special Protection") noted by so many about EIA's I often find someone with a 7 Lic. or RIA/IA, just laugh when I see that! Obviously not in all cases but many that I have been given links to to show the abuse by the evil insurance agent that everyone so hates!

 

[Guest]

EIA is a FA, any way you look at it. It is fix with a guarantee FIX rate, once again the debate comes with the "Extra" rate that may materalize or may not. The seperate account comment was on how State DOI generally views to decide if it is Insurance or a Variable/Securities, so the EIA falls under the Insurance side not the Security side and rightly seen that way by all States that I know of or interested in.

I think this whole issue is really a turf-war between BDs and insurance companies. The RRs don't want to see agents encroach on their turf. They want a 'monopoly' on selling FIAs. My own personal experience, I've known, met, and read about many, many, MANY more crooked, corrupt, sleazy RRs than licensed life agents. YMMV.

Al

 

[senior-advisor-indiana]

Most RR dont care to even sell FIA. They just dont want us insurance agents making more than they do. Plus they lose alot of VA biz to FIA.

WHAT STATE ARE YOU IN JMO????????????????????????????????

 

[arnguy]

JMO has been asked that at least 3 times. I think it is a military secret!

P.S. I hope that it is not the state of confusion!

 

[senior-advisor-indiana]

 

[James]

NASD statements are the 'shot across the bow.'

Yea kind of like the Merrill Rule being rejected, geez now we have all these Rep's wondering what their world will look like tomorrow as now Fiduciary and Suitability might mean something to them.

 

[James]

Let us not also forget about the EIUL! I would think the same argument could be use for them as well as the EIA if you fall for this nonsense.

 

[JMO Fan]

Let us not also forget about the EIUL! I would think the same argument could be use for them as well as the EIA if you fall for this nonsense.

That seems accurate, EIUL will be affected as well as EIA if/when the SEC (or federal court) ultimately makes a decision. If the SEC says they're all securities, the NASD will be validated. If they decide EI products are not securities, the NASD will be embarrassed (although the NAIC might feel better).

The NASD is closely affiliated with the SEC (and registered reps). The NAIC represents the states (which means me). Which do you think the SEC will side with?

 

[James]

That seems accurate, EIUL will be affected as well as EIA if/when the SEC (or federal court) ultimately makes a decision. If the SEC says they're all securities, the NASD will be validated. If they decide EI products are not securities, the NASD will be embarrassed (although the NAIC might feel better).

The NASD is closely affiliated with the SEC (and registered reps). The NAIC represents the states (which means me). Which do you think the SEC will side with?

Well that is about the only thing you posted I can agree with, you may very well be correct but I would think it is bound to be decided by the Courts, unfortunely the Federal Courts. Then it depends if it is heard in say the 9th Circus Court or the 4th Circuit Court.

 

[Crabcake Johnny]

I don't know what the big stink is all about. Register them as securities and agents just have to pass another test. If they can't pass the securities test they shouldn't be talking about financial vehicles in the first place.