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Old (1986) Rule 151 is called the "Safe Harbor" rule. It describes how annuities (and life insurance) can stay inside the "Safe Harbor," i.e., not be subject to securities laws. One of its basic points is that the contract not be marketed as an investment.
Whenever an agent compares indexed annuities to other investments (CDs, mutual funds, gold, ...) to make a sale, it pushes the product outside the Safe Harbor. Virtually all EIA sales emphasize the investment return (e.g., more than life income, which is the supposed reason for annuities to be exempt from SEC registration). That makes them subject to securities laws.
Whenever an agent compares indexed annuities to other investments (CDs, mutual funds, gold, ...) to make a sale, it pushes the product outside the Safe Harbor. Virtually all EIA sales emphasize the investment return (e.g., more than life income, which is the supposed reason for annuities to be exempt from SEC registration). That makes them subject to securities laws.
