Military Officials Propose Life Sales Regs

The American Council of Life Insurers, Washington, and the National Association of Insurance and Financial Advisors, Falls Church, Va., are welcoming the proposed regulations.

"The proposed rules would strongly increase supervision of life insurance sales to military personnel," ACLI spokesman Jack Dolan says. "They are responsive to abuses uncovered but, importantly, don't appear to deny our military personnel from obtaining coverage they may want and need."

Dolan says the Defense Department proposal does not appear to target any one distribution method. "It does impose new and rigorous rules relating to sales overseas, and we'll have to evaluate them further," he says. "But again, the industry shares the desire of both Congress and the DOD to straighten out this situation."

A NAIFA spokesman says NAIFA will want to work with the Defense Department to improve the final rule. But "NAIFA is pleased that the proposed regulation recognizes the role of state insurance regulators," the spokesman says.