A case in Florida over the near-dead Retirement CD could jeopardize the industry's authority to sell annuities. While the Supreme Court's 1995 decision in the Valic case solidified banks' authority to sell the tax- deferred products, several states are attempting to redefine annuities as insurance products subject to their regulation.

In a case now before the federal appeals court in Atlanta, Florida regulators are claiming that they can prevent a bank from offering the Retirement CD, an annuity-like product that has federal deposit insurance.

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