[Congressional Record Volume 152, Number 117 (Tuesday, September 19, 2006)]
[Extensions of Remarks]
[Pages E1764-E1765]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      S. 418: MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT

                                 ______
                                 

                        HON. SHEILA JACKSON-LEE

                                of texas

                    in the house of representatives

                      Tuesday, September 19, 2006

  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in support of S. 
418, the Military Personnel Financial Services Protection Act. This act 
helps to ensure that our military personnel are not vulnerable to 
immoral and dishonest insurance schemes.
  I think the provisions of this bipartisan bill are crucial for the 
protection of our Armed Forces and their families. While most of 
America's focus on the military concerns our actions abroad, protecting 
personnel and their families at home can sometimes be overlooked. But 
for years now, men and women in the armed services have fallen victim 
to unscrupulous salespersons pushing high cost and unnecessary 
financial products and life insurance. This practice must be stopped.
  As numerous investigations, studies, and congressional hearings have 
shown, bad actors within the insurance and financial products industry 
have been taking advantage of military personnel in order to turn a 
quick profit. The military personnel they target are often young, 
inexperienced in financial matters, and particularly vulnerable to the 
aggressive sales tactics used by some companies. To make matters worse, 
Department of Defense Directives and state regulations would be 
violated or completely ignored by these salespersons, without 
repercussion.

[[Page E1765]]

  In some cases, servicemen and women were sold life insurance policies 
with low benefits and premiums as high as fourteen times the amount 
available to every enlisted person under the Servicemembers' Group Life 
Insurance program. In other cases, they were sold investments that have 
all but disappeared from the civilian markets because they can rob 
investors of years of earnings. But some salespersons found a niche 
outside of the public mainstream to sell these disreputable investments 
on our military bases.
  It should be noted that there are many upstanding financial and 
insurance companies that sell very worthwhile investment and insurance 
products to military personnel and their families. They should be 
applauded for the fine job that they do in helping our military members 
and their families. This bill is targeted at the few who abuse the 
system and prey upon our military.
  This bill, the Military Personnel Financial Services Protection Act, 
will stop these practices by targeting the bad actors, adding much-
needed transparency and communication between federal and state 
agencies. This bill clarifies confusing jurisdictional issues between 
DoD and state regulators, allowing regulators to better enforce state 
and federal law on military bases. It would create a registry to track 
investment advisors, brokers, dealers, and insurance salespersons, and 
let bases know when a suspicious salesperson has walked through their 
gates. Finally, the bill would ban the worst types of financial 
products being sold to our military. These products have disappeared 
from the civilian market, and they should disappear from our military 
installations too.
  This bill has gained bipartisan support in Congress. I urge you to 
support this legislation and protect the financial future of our 
military personnel and their families. During a time when so many of 
our armed forces are bravely fighting tyranny abroad, we must ensure 
that they are protected at home.

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