The House approved a bill Tuesday that is designed to clarify the jurisdiction of state regulators over sales of insurance products on military bases and protect enlistees from inappropriate sales practices and products.[@@]
The vote on the bill, H.R. 5011, was 396-2, with 2 conservative Republicans, Reps. Jeff Flake of Arizona, and Ron Paul of Texas, the only ones to vote no.
At the same time, Sens. Hillary Clinton, D-N.Y., and Michael Enzi, R-Wyo., were preparing at press time to introduce similar legislation in the Senate. However, given the fact that Congress is rushing to finish its most important business so it can adjourn Friday because its members want to campaign, most lobbyists don’t believe Congress will have time to act on the bill this year. The only hope is that it will be taken up in a lame-duck session scheduled to be held in late November.
Regarding the vote, the American Council of Life Insurers, Washington, and the Independent Insurance Agents and Brokers of America, Washington, have expressed strong support for the House action.
“The vote by the House reflects the dedication of both lawmakers and life insurers to stop abusive life insurance and mutual fund sales practices at military installations,” says ACLI President Frank Keating.
“The soldiers protecting us deserve no less than a full commitment to help them financially,” Keating adds. “Life insurers support this measure because, in many ways, the reports of unscrupulous sales at some military installations have affected us as well. We in the industry were outraged to learn that the trust placed by our soldiers in some agents and products they purchased was misplaced. The life insurance industry takes pride in helping people achieve financial and retirement security.”