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Oxley To Schedule Hearing On Military Life Sales

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The U.S. House Financial Services Committee plans to hold a hearing on suitability of sales of life insurance to military personnel after the summer recess.[@@]

House Financial Services Committee Chairman Michael Oxley, R-Ohio, announced the hearing on CNBC’s Kudlow & Cramer.

Oxley was responding to a series of articles published in the New York Times this week that dealt with the military life sales issue.

Oxley said insurance regulatory reform legislation he is crafting with Rep. Richard Baker, R-La., the chairman of a key subcommittee, might deal with the issues discussed in the Times article.

Military personnel “are vulnerable,” Oxley said. “They put their lives on the line. A lot of these people have young families that they are trying to take care of on a relatively small military salary. So it’s very unfortunate they are being taken advantage of. There are several things we can address.”

Oxley said he and Baker are moving to introduce the bill before the summer recess and, while acknowledging that the military can take steps to bar companies from operating on military base grounds, he said he hopes the bill provides some clarity as to which state regulators have jurisdiction over such sales.

“That’s one of the things we are wrestling with on this insurance reform bill that we hope to introduce before the Congress adjourns, so we can get at least a place where we can start to discuss these very important issues trying to unify more of the state laws and state regulatory regimes,” Oxley said. “We have had pushback from some states on trying to get these more uniform. We have to recognize, we have a national marketplace. These products are being sold in all 50 states. And we have to have some kind of ability to have commonality in the regulatory structure, and that should take place, whether it’s in Ohio or Texas.”