II 

111TH CONGRESS 

1ST SESSION S. 1389 

To clarify the exemption for certain annuity contracts and insurance policies 

from Federal regulation under the Securities Act of 1933. 

IN THE SENATE OF THE UNITED STATES 

JUNE 25, 2009 

Mr. NELSON of Nebraska (for himself, Mr. CHAMBLISS, Mr. HARKIN, and Mr. 

BROWNBACK) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To clarify the exemption for certain annuity contracts and 

insurance policies from Federal regulation under the Securities Act of 1933. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fixed Indexed Annu5 ities and Insurance Products Classification Act of 2009’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—Congress makes the following find8 ings: 


jbell on PROD1PC69 with BILLS
2 

•S 1389 IS

1 (1) Primary jurisdiction for regulating life in2 surance and annuities is vested with the States and 

3 Territories of the United States and the District of 

4 Columbia. 

5 (2) Indexed insurance and annuity products of6 fered by insurance companies are subject to a wide 

7 array of laws and regulations enforced by States and 

8 applicable jurisdictions, including nonforfeiture re9 quirements that provide for minimum guaranteed 

10 values, thereby protecting consumers against market 

11 related losses. 

12 (3) Adoption of Rule 151A by the Securities 

13 and Exchange Commission, entitled ‘‘Indexed Annu14 ities and Certain Other Insurance Products’’, 74 

15 Fed. Reg. 3138 (January 16, 2009), interferes with 

16 State insurance regulation, harms the insurance in17 dustry, reduces competition, restricts consumer 

18 choice, creates unnecessary and excessive regulatory 

19 burdens, and diverts Commission resources, all of 

20 which outweighs any perceived benefits. 

21 (b) PURPOSE.—The purpose of this Act is to nullify 

22 rule 151A and clarify the scope of the exemption for annu23 ities and insurance contracts from Federal regulation 

24 under the Securities Act of 1933. 


jbell on PROD1PC69 with BILLS
3 

•S 1389 IS

1 SEC. 3. SCOPE OF EXEMPTION FROM FEDERAL SECURITIES 

2 REGULATION. 

3 Section 3(a)(8) of the Securities Act of 1933 (15 

4 U.S.C. 77c(a)(8)) is amended by inserting before the semi5 colon the following: ‘‘, and any insurance or endowment 

6 policy or annuity contract or optional annuity contract— 

7 ‘‘(A) the value of which does not vary ac8 cording to the performance of a separate ac9 count; and 

10 ‘‘(B) which satisfies standard nonforfeiture 

11 laws or similar requirements of the applicable 

12 State, Territory, or District of Columbia at 

13 time of issue, or in the absence of applicable 

14 standard nonforfeiture laws or requirements, 

15 satisfies the Model Standard Nonforfeiture Law 

16 for Life Insurance or Model Standard Nonfor17 feiture Law for Individual Deferred Annuities, 

18 or any successor model law, as published by the 

19 National Association of Insurance Commis20 sioners’’. 

21 SEC. 4. NULLIFICATION OF CERTAIN FEDERAL SECURITIES 

22 REGULATIONS. 

23 Rule 151A promulgated by the Securities and Ex24 change Commission and entitled ‘‘Indexed Annuities and 


jbell on PROD1PC69 with BILLS
4 

•S 1389 IS

1 Certain Other Insurance Contracts’’, 74 Fed. Reg. 3138 

2 (January 16, 2009), shall have no force or effect. 

Æ 


jbell on PROD1PC69 with BILLS