Personal Commercial Solicitation of Military Personnel: Impact of DoD Actions and Public Law 109-290
Abstract
As required by Congress, this is our second report on the impact of revisions to DoD Instruction 1344.07, Personal Commercial Solicitation on DoD Installations, and the reforms included in Public Law 109-290 on the quality and suitability of sales of securities and insurance products to junior enlisted members of the Armed Forces. Our review of the impact of mandated reforms on the suitability of financial products marketed to Service members at three European Command installations and two stateside military installations found no instances of sales of inappropriate life insurance or financial products to Service members while on base. In fact, we found that DoD and some State insurance regulators were identifying and taking actions against inappropriate sales practices to Service members off base. For example, during our review we found while following up on the possible sale of inappropriate life insurance products at the Naval Air Station Pensacola, that inappropriate sales were taking place off base. Discussions with U.S. Navy Region Legal Service Office determined that it had investigated and issued a report on February 15, 2008. The report concluded that a financial agency was in direct violation of Florida s Military Sales Practice Rule. It recommended actions be taken immediately to lessen the harm being done to the Sailors and Marines on Naval Air Station Pensacola. In addition, the Florida Office of Insurance Regulation issued an order on May 8, 2008, to two life insurance companies for their activities involving inappropriate sales practices considered to be deceptive or unfair involving Service members. The insurance companies must show cause why the State should not take action. Further, State Insurance Commissioner s Offices in Georgia and Illinois have taken action against an insurance company and an agency for their inappropriate sales practices in violation of State regulations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 23, 2009
- Accession Number
- ADA596265