A subcommittee of the House Financial Services Committee will delve into the suitability of sales of insurance products to military personnel from marketers located near military bases in a hearing in early September. However, a spokesman for the panel said it was unclear how the committee would proceed beyond the hearing.
A staff official of the House Financial Services Committee confirmed last week that Rep. Mike Oxley, R-Ohio, the committee chairman, has asked his staff to prepare a hearing to be held by a subcommittee; multiple witnesses are expected to testify. The hearing is in response to articles published in the New York Times recently taking aim at alleged sales of unsuitable insurance products to military personnel.
Additionally, Oxley said during an appearance on CNBCs Kudlow & Cramer that some of the problems exposed by the Times articles may be dealt with through insurance regulatory reform legislation he is crafting with Rep. Richard Baker, R-La., who chairs a key subcommittee. A provision has been prepared for that legislation, called the “roadmap,” that would clarify that such sales are subject to state regulation.