Selling VAs? Check Out Regulatory Leanings
National Underwriter (Life/Health) (10/16/00) Vol. 104, No. 42 p.17; Marrion, Jack

The Securities and Exchange Commission (SEC) Web site contains a consumer-oriented section dubbed, "Protect Your Money." In the section, the SEC lists certain investment areas where consumers should stay on their guard. Some of these areas include identifying bogus bank scams, Nigerian advance-fee fraud schemes, Internet investment scams, promissory note fraud, and fraudulent telemarketing. For insurers, there is extensive information on variable annuities. The SEC's 11-page report, "Variable Annuities: What You Should Know," covers VAs, the charges assessed, how they work, and questions to ask about them. Additionally, the report lists several cautionary bullets to those planning a 1035 exchange, investing in a VA through a retirement plan, or thinking of exchanging their policies for a different annuity with a bonus feature. Reasons noted for the higher visibility regulators are placing on VAs include both the high growth of the VA market and changes in VA product features.


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