Military Personnel Financial Services Protection Act: H.R. 5011, 108th Congress (CRS Report for Congress)
| Release Date |
Oct. 19, 2004 |
| Report Number |
RS21957 |
| Report Type |
Report |
| Authors |
Janice E. Rubin and Michael V. Seitzinger, American Law Division |
| Source Agency |
Congressional Research Service |
Summary:
H.R. 5011, the Military Personnel Financial Protection Act, was passed by the House on October 5, and is pending in the Senate Committee on Banking, Housing, and Urban Affairs. The bill utilizes both Congress' constitutional Commerce Power authority to enact insurance legislation, and the states' traditional regulation of the insurance industry to create a scheme for regulating the sale of certain life insurance products to military personnel that supporters argue is fairer and more transparent than is currently the case. It amends three primary securities laws -- the Investment Company Act of 1940, the Securities Exchange Act of 1934, and Investment Advisers Act of 1940; invests the states with regulatory authority over 'insurance activities conducted on Federal land or facilities in the United States and abroad'; requires sellers of life insurance products on federal facilities to make certain written disclosures to, for example, clarify that the products being offered are not recommended by the government or may be alternatively available through the government; and mandates that the Secretary of Defense maintain an easily accessible list of insurance and securities producers barred from military installations.
