THE NATIONAL ASSOCIATION OF INSURANCE and Financial Advisors responded to Congressional action taken to protect the U.S. military servicemen and women during the life insurance sales process.
The U.S. Senate Banking Committee passed the Military Personnel Financial Services Protection Act, sponsored by Sens. Mike Enzi, D-Wyoming, and Hillary Clinton, D-New York.
The bill would clarify regulatory jurisdiction over the sale of life insurance on military bases, band the sale of contractual mutual funds and require military personnel be informed about the coverage offered by the federal government prior to discussing the sale of private insurance. The bill 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.
NAIFA released this statement:
"For many years NAIFA has urged cooperation between the military, state insurance regulators and the life insurance industry to protect servicemen and women from unfair and deceptive sales practices. [This act] will provide the coordination necessary to protect our servicemen 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 hopes the full Senate will move quickly to pass [the bill] so we can move one step closer to providing the protections our soldiers deserve."
