Five years after a law to protect U.S. military personnel from salespeople selling life insurance, a new Pentagon report finds problems continue.
The Inspector General found that insurance agents used prohibited sales practices both on and off U.S. military bases to persuade personnel to buy insurance they may not need or be able to afford. And the report also found that military personnel failed to enforce existing policies that limits solicitation of military personnel. In addition, the report said, companies used misleading marketing techniques and misused the Defense Department myPAY internal payment system.
“Although DoD (Department of Defense) has taken some corrective actions and some States have initiated actions against insurance agents and companies, junior enlisted Service members continue to purchase high-cost life insurance products considered unsuitable for most military personnel and which may threaten their financial stability,” the Pentagon Inspector General wrote in a report released Tuesday.
All military personnel are automatically enrolled in a life insurance policy administered by the Veterans Administration from their first day of training or active duty.
Source: Charley Keyes for CNN.
Five years after a law to protect U.S. military personnel from salespeople selling life insurance,…
by Tactical-Life.com / Aug 24, 2011