The Department of Defense has proposed regulations designed to curb abuses in the sale of life insurance and other financial products on military bases that follow closely consumer protection mandates contained in a bill now awaiting action on the House floor.
Life insurance industry trade groups voiced general support for the bill but did express concern about specific provisions. The American Council of Life Insurers said it would ask for clarification of rules regarding sales to those stationed overseas, while officials of the National Association of Insurance and Financial Advisors said it “had some concerns about the process by which agents may be disciplined or barred from military posts.”
The proposal carries a 60-day comment period; a public hearing on the proposed rules will be held May 6 in Arlington, Va.
The proposed regulation requires closer cooperation between military authorities and civilian regulators, including state insurance commissioners. It also requires the DOD to create and maintain a master list of disciplinary actions against sales agents at military bases and that such a list be made available to legal personnel at all bases.