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Did You Know?

That in 2008, the total average expense difference between variable annuities and mutual funds was 1.18%
That, as of the fourth quarter 2008, the combined net assets of U.S. variable annuities were valued at $1.2 trillion?
In 2008 fixed annuity assets valued at 556 billion a 9% increase from 2007?
In 2009, the contribution limits range from $5,000-$6,000 for an IRA, $16,500-$22,000 for a 401k and $200,000 plus for a non-qualified annuity?
That the average number of funds per variable annuity contract was 51, in 2008 with an average contract value of $49,200?

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High-Level Professional Resources

IRI Comments: Will Assist Members in Complying with Rule 151A on Indexed Annuities

01.09.2009

On December 17, 2008, the Securities and Exchange Commission approved the adoption of new Rule 151A under the Securities Act of 1933 to clarify the status under the federal securities laws of indexed ffannuities. As a result of this new rule, indexed annuities that fall within the rule will have to be registered with the SEC as securities and sold only through registered broker-dealers. It is expected that most, if not all, existing indexed annuity contracts will be affected.

By requiring registration of indexed annuity contracts, the new rule will provide purchasers of indexed annuities all of the consumer protections of the federal securities laws, including disclosure, antifraud, and sales practice protections.

The new rule is prospective only and will apply to contracts issued after January 12, 2011.

IRI will provide assistance to its member companies in complying with the requirements of the rule.

The Rule is posted on the SEC's website at http://www.sec.gov/rules/final/2009/33-8996.pdf.

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