Letters to the Editor for Aug. 15
August 24, 2010 by Willard Jenkins
Senators put Iowa, country first
Willard Jenkins
Former state representative
WATERLOO – Thanks to Sens. Charles Grassley and Tom Harkin for their amendment to the recent financial reform bill – an amendment that was very important to Iowa and our insurance industry.
Their amendment blocked the Federal Securities and Exchange Commission from treating fixed indexed annuities as equities and taking over regulation.
Fixed indexed annuities have long been treated as insurance products regulated by states. Regulation quality has not been an issue.
The Harkin-Grassley amendment allowed fixed indexed annuities to remain with insurance companies. Without this amendment, the bill would have had the effect of moving jobs from Iowa.
When I chaired the Iowa House Commerce Committee, I was repeatedly impressed with the economic impact of Iowa’s insurance industry, which employs over 42,000. Connecticut is the insurance capital of the United States, but Iowa is No. 2.
For consumers, the SEC proposal would have resulted in fixed indexed annuities being sold by broker-dealers rather than traditional insurance agents. Many smaller cities have insurance agents but not brokers. Consumers are satisfied with purchasing these products as they always have and trust the regulation provided to them by our state regulators.
Our senators worked together for our citizens, the betterment of Iowa and our country.
