Members of the Florida State Senate Banking and Insurance Committee voted unanimously to approve an amendment dealing with sales of financial services products to military servicemembers.
Sen. Ted Deutch, D-Delray Beach, Fla., the committee vice chairman, introduced the amendment, which would require the state Department of Financial Services to adopt formal rules aimed at protecting servicemembers.
The rules would be based on model laws developed by the National Association of Insurance commissioners, Kansas City, Mo., and on NAIC findings.
The amendment was attached to S. 2702, a bill that would permit licensed insurance agents in charge of a licensed insurance agency to also be in charge of branch locations, provided that no activities requiring a licensed agent are conducted by unlicensed persons at the branch locations.
Florida Chief Financial Officer Alex Sink, whose jurisdiction includes the state Office of Insurance Regulation, has been a strong supporter of the Deutch amendment. She testified on behalf of the amendment at the Senate Banking and Insurance Committee hearing held to discuss S. 2702.
Sink became concerned about the issue after hearing about it at NAIC meetings, according to the state Financial Service Department.
“Our soldiers are making the ultimate sacrifice to protect our freedoms, and they deserve protection from predatory or deceptive insurance sales practices,” Sink said in a statement after the committee vote.
The NAIC proposed a model act governing the sale of life insurance products on military base grounds during its spring meeting in March. The NAIC model act would set new standards for suitability of products and bar a number of sales practices and product features.