THE READY RESERVE MOBILIZATION INCOME INSURANCE PROGRAM (CRS Report for Congress)
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| Release Date |
Aug. 3, 1998 |
| Report Number |
98-652 |
| Report Type |
Report |
| Authors |
Lawrence Kapp, Foreign Affairs and National Defense Division |
| Source Agency |
Congressional Research Service |
Summary:
The Ready Reserve Mobilization Income Insurance Program (RRMIIP) was a Department of
Defense (DoD) program designed to help military reservists protect themselves from financial loss
during an involuntary order to federal active duty. Though intended to be a self-financing program,
the RRMIIP became insolvent soon after its debut in 1996 due to low enrollment and severe adverse
selection. The program was terminated by Congress only a year later and Congress eventually
appropriated a total of $119 million to pay off insurance claims associated with the RRMIIP. The
failure of the RRMIIP diminished interest in mobilization insurance both in Congress and DoD, but
there has been continuing pressure by some reservists and various reservist interest groups to
implement a new program. This report examines the creation and failure of the RRMIIP and
analyzes some possible options for addressing the issue of income loss due to mobilization,
including a restructured mobilization insurance program, individual savings and investment,
government reimbursement of loss, and private insurance.
