Congress Takes Next Step to Protect Military
Contact
Lee Allen
Vice President of Communications and Marketing
703-770-8112
September 21, 2006 – The National Association of Insurance and Financial Advisors (NAIFA) responded to Congressional action taken today to protect the U.S. military service men and women during the life insurance sales process.
The House of Representatives passed S.418, the Military Personnel Financial Services Protection Act, sponsored by Senators Mike Enzi (R-WY) and Hillary Clinton (D-NY), by a vote of 418-3. The bill would clarify regulatory jurisdiction over the sale of life insurance on military bases, ban the sale of contractual mutual funds, and require that military personnel be informed about the coverage offered by the federal government prior to discussing the sale of private insurance. S. 418 directs the states to develop standards to protect members of the armed services from unfair and deceptive sales practices and cooperate with the Department of Defense in reporting disciplined agents. In June 2005, the House of Representatives overwhelmingly approved its version of the bill, H.R. 458, sponsored by Rep. Geoff Davis (R-KY).
The House version addresses predatory lending practices targeted at military personnel—an issue not taken up in the Senate bill. The House agreed to accept the Senate bill (passed by the Senate July 19) with the promise of addressing the predatory lending issue at a later date.
After the House action yesterday, NAIFA released the following statement:
"NAIFA commends House members for their overwhelming support for the Military Personnel Financial Services Protection Act."
"For many years NAIFA has urged cooperation between the military, state insurance regulators, and the life insurance industry to protect service men and women from unfair and deceptive sales practices. The Military Personnel Financial Services Protection Act will provide the coordination necessary to protect our service men and women."
"All consumers deserve nothing less than the best advice and consumer protections available. We are pleased that S.418 appropriately recognizes state jurisdiction over the sale of life insurance on military bases and takes advantage of existing state regulatory safeguards intended to protect all consumers from unfair and deceptive sales practices."
"NAIFA expects President Bush will sign S. 418 into law and give our soldiers the protections they deserve."
About NAIFA: Founded in 1890 as the National Association of Life Underwriters, the National Association of Insurance and Financial Advisors comprises 800 state and local associations representing the business interests of 225,000 members and their employees nationwide. Members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. NAIFA's mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members. NAIFA's website can be accessed at www.naifa.org.