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FOR IMMEDIATE RELEASE NAIC COMMENDS PRESIDENT BUSH, CONGRESS FOR
PROTECTING THOSE WHO PROTECT US WASHINGTON, D.C. (Sept. 29, 2006) – The National Association of Insurance Commissioners (NAIC) today applauds President George W. Bush for signing into law S. 418, the Military Personnel Financial Services Protection Act.
The legislation, sponsored in the Senate by Mike B. Enzi (R-Wyo.) and in the House by Geoff Davis (R-Ky.), clarifies the application of state insurance and securities protections on military installations, and outlaws the sale of certain high-cost mutual funds and insurance products that are targeted toward military personnel.
“We commend President Bush and Congress for recognizing the important role of state insurance commissioners in protecting all consumers, including those serving in the military,” said John Oxendine, Georgia Insurance and Safety Fire Commissioner. “This legislation ensures that members of the armed forces, who are protecting us, are also protected.”
The NAIC recognizes Chairman Richard Shelby (R-Ala.) and Ranking Member Paul Sarbanes (D-Md.) of the Senate Committee on Banking, Housing and Urban Affairs, and Chairman Michael Oxley (R-Ohio) and Ranking Member Barney Frank (D-Mass.) of the House Committee on Financial Services for their leadership on this important issue. State insurance officials also laud the hard work of Sen. Enzi and Rep. Davis on this significant legislative accomplishment during the 109th Congress, as well as that of leading co-sponsors Sen. Hillary Clinton (D-N.Y.) and Rep. David Scott (D-Ga.).
S. 418 makes clear in federal law that state consumer protections for insurance and securities, including the oversight of sales practices, apply on military instillations. The act bans periodic payment plans, a type of financial product that has all but disappeared from the civilian market because it carries unusually high fees and sales commissions. It also asks the NAIC to work with the Secretary of Defense to develop ways of improving the quality of life insurance products sold on military installations and to implement appropriate standards to protect military personnel from dishonest and predatory sales practices.
Earlier this month, in anticipation of this new legislation, the NAIC signed a memorandum of understanding (MOU) with the U.S. Department of Defense (DoD), which establishes a partnership between the NAIC and the Deputy Under Secretary of Defense (Military Community and Family Policy). The MOU allows the DoD to use the NAIC’s Life Insurance for Military Personnel brochure as part of its campaign to improve the financial literacy of service members and their families.
The Senate unanimously passed S. 418 on July 19, 2006. On Sept. 21, the House voted 418-3 to send S. 418 to President Bush for his signature.
About the NAIC Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm
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2006 National Association of Insurance Commissioners. All rights reserved. | ||
