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October 20, 2004 at 08:00 PM
Washington
In an apparent expansion of the investigation into the suitability of insurance sales to military personnel at bases throughout the country, the U.S. Attorney for the Eastern District of Pennsylvania has subpoenaed records dealing with such sales of American Amicable Life Insurance Company of Waco, Texas.
A staff official of the U.S. Attorneys office for the Eastern District of Pennsylvania said he could not comment as a matter of policy. But an official of American Amicable Life said the company “is working with the Department of Justice regarding a civil inquiry. Our desire is to respond responsibly to the U.S. Attorneys questions while continuing to provide solid, stable life insurance to our customers.”
In another development, the Georgia insurance department is moving to revoke the license of an insurance agency allegedly involved in inappropriate insurance sales to military personnel at Fort Stewart, Ga.
Legislation tightening up the oversight of insurance sales to military personnel passed the House overwhelmingly earlier this month, 396-2, but final action on such legislation is not likely until early next year. The legislation clarifies that insurance sales on military bases is subject to oversight by state insurance regulators, and the bill also imposes disclosure and other requirements on agents and companies selling these products.
Georgia Commissioner John Oxendine disclosed that his office has scheduled a show-cause hearing in Hinesville, Ga., where Fort Stewart is located, for Associates Financial Group, a full service agency based there, for the purposes of revoking the agencys license. Also cited was its general agent, Jacques Frym. Oxendine said he was made aware of the federal probe Oct. 18, but was given no details and has not been contacted by federal officials.
Oxendine also said the National Association of Insurance Commissioners has created an informal working group to deal with the growing criticism of unsuitable sales on military bases. Texas is an equal partner in the probe, Oxendine said, with Florida and Illinois monitoring it closely. Other states expressing interest are Washington, Utah, Nevada, Kansas and New York, he said.
