The National Association of Insurance and Financial Advisors says it wants the U.S. Department of Defense to come up with military base consumer protection rules that will be fair to financial advisors.[@@]
NAIFA, Falls Church, Va., has submitted recommendations to the Defense Department on revisions to the rules that govern the sale of life insurance products and other financial services products to military personnel on military base grounds.
The Defense Department is considering rules changes in response to a series of reports of soldiers buying unsuitable policies and investment products.
In its recommendation to the Pentagon, submitted earlier this week, NAIFA suggested that the current rules be left largely intact.
“It is important to ensure that military personnel continue to have access to quality insurance advice and products,” NAIFA Chief Executive David Woods writes in a letter giving NAIFA’s recommendations. “It is never too early for military personnel to begin building a solid financial foundation. Military personnel, no matter how young, owe it to themselves and their families to be on sound financial footing.”
If the Defense Department does change the rules, it should coordinate with state insurance regulators, Woods writes.
In addition, NAIFA is asking the Defense Department to create a formal process for producers who are denied access to military bases. Base commanders should have broad, but not unfettered, discretion when investigating potentially unfair or deceptive sales practices, NAIFA says.
Earlier this year, some insurers said military commanders should have to explain base access decisions at “show cause” hearings.